SB 1494: Florida Hurricane Catastrophe Fund

• Revises the definition of "losses" to include allocated loss adjustment expenses and increase additional living expenses coverage to up to 40 percent of insured value, while removing coverage for condominium assessments, bad faith awards, and punitive damages.

• Changes the retention calculation methodology and raises the aggregate retention level limit to $5 billion effective June 1, 2016, while removing the fixed $4.5 billion baseline calculation.

• Modifies the fund's obligation to $17 billion per contract year and requires the board to publish estimated borrowing and claims-paying capacity in January instead of May and October, with a minimum 3-year bonding capacity estimate.

• Requires the board to negotiate a line of credit sufficient to cover projected receipts from a minimum of 3 years' bonding and second-event catastrophes, with closure required by July 1, 2016.

• Eliminates the cash build-up factor requirement from the premium formula previously set at 25 percent for the 2013-2014 contract year and thereafter.