If the FWCJUA experiences a deficit in either Tier 1 or Tier 2, funding would come from where?

The correct choice is based on the funding mechanisms established for the Florida Workers’ Compensation Joint Underwriting Association (FWCJUA). When a deficit occurs in either Tier 1 or Tier 2, the FWCJUA addresses this financial shortfall primarily through assessments levied on all workers’ compensation policies in the voluntary market. This means insurers participating in the voluntary market are required to contribute a certain amount to cover the deficit, ensuring that the FWCJUA can meet its obligations even when faced with financial challenges.

This funding approach is set up to spread the financial burden across the broader insurance market, making it a shared responsibility rather than solely placing the weight on the FWCJUA or its policyholders. By implementing a one-year assessment, it allows for a quick response to deficits while maintaining the financial stability of the FWCJUA.

The other options do not accurately reflect the established mechanisms for addressing deficits within the FWCJUA's program. An increase in premium rates or state funding might be options considered in broader contexts, but the immediate and correct action in the face of a deficit is the assessment on voluntary market policies.