HB 833 Summary

• Increases the fund's retention level from $4.5 billion to $8 billion starting with the 2013-2014 contract year, phasing in over multiple years with adjusted retention multiples based on coverage levels selected by insurers.

• Reduces maximum available coverage levels from 90/75/45 percent to 75/45 percent starting in the 2015-2016 contract year, with a phase-in period reducing from 90 percent in 2012-2013 to 85 percent in 2013-2014 to 80 percent in 2014-2015.

• Reduces aggregate coverage limits from $17 billion to $12 billion by the 2015-2016 contract year through a phase-in schedule ($17 billion in 2012-2013, $15.5 billion in 2013-2014, $14 billion in 2014-2015).

• Increases the cash build-up factor in reimbursement premiums from 20 percent to 50 percent by the 2018-2019 contract year, with incremental increases of 5 percent annually.

• Reduces maximum allowable emergency assessments from 6 percent to 5 percent per contract year for losses after 2015-2016, and from 10 percent to 8 percent aggregate; renames the financing corporation as the State Board of Administration Finance Corporation.