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.C o c Florida Municipal Insurance Trust NOTES TO FINANCIAL STATEMENTS September 30,2010 Note 10 - Premiums Collected in Advance Premiums collected in advance represents premiums collected prior to October 1, 2010 but allocable to the year ending September 30, 2011. Note 11 - Administrative and Service Fees Administrative and service fees are paid to the League for claims administration and other administrative services pursuant to one-year agreements, In addition, the League was paid $315,000 for reinsurance management services and $33,786 for additional claim administrative services, which are included in other expenses, and $1,139,125 for managed care fees, which is included in claims expenses, A number of the Trust's Board of Trustees are also members of the League's Board of Directors, Administrative fees in the amount of $898,582 were paid to United Healthcare, and $224,169 was paid to CIGNA HealthCare for HMO health claims ad.ministration, Note 12 - Sponsorship Fee The Trust paid the League a sponsorship fee for sponsoring and promoting the Trust. Note 13 - Fraud Unit Expense The Trust has contracted with the League to operate a special investigative unit to pursue and minimize fraudulent insurance acts committed against the Trust. Note 14 - Surety Bond The Trust has issued a surety bond to FMLC, guaranteeing payment of principal and interest on the Revenue Bonds, Series 2000A, in the amount of $1,045,000, maturing between 2011 and 2024, The surety bond is collateralized by cash and investments held in trust by Deutsche Bank in the amount of the guarantee. The League serves as Administrator for both the Trust and FMLC, Note 15 - Policyholder Dividend Dividend payable represents distributions to be made to Trust members who had property insurance coverage with the Trust in the year ended September 30, 2009 and have continued property insurance coverage with the Trust in the year ending September 30, 201,1. 19