FL H1293

Increases the Florida Hurricane Catastrophe Fund (FHCF) retention multiple from $4.5 billion to $8.5 billion beginning with the June 1, 2024 contract year, and adds a 100-percent coverage level option for insurers with an adjusted retention multiple of 90 percent of the base amount.

Freezes the FHCF cash build-up factor at 25 percent for the 2024-2025 contract year for a 12-month period ending no later than July 1, 2025, with savings required to be passed directly to consumers; increases loss adjustment expense reimbursement from 10 percent to 25 percent of total subject losses.

Restructures the Reinsurance to Assist Policyholders (RAP) program to make participation voluntary rather than mandatory, expands covered events beyond hurricanes to include tropical storms, tornadoes, hail storms, wind events, and wildfires, increases the reimbursement rate from 90 to 100 percent, requires actuarially indicated premiums, and increases maximum General Revenue Fund transfers from $2 billion to $4 billion per contract year.

Revises the Florida Optional Reinsurance Assistance (FORA) program by reducing optional layers from four to three, increasing the maximum aggregate coverage from $1 billion to $3 billion, requiring actuarially indicated premiums, increasing maximum General Revenue Fund transfers from $1 billion to $3 billion per contract year, and requiring a $580 million transfer from the FORA Fund into the FHCF to offset cash build-up freeze losses.

Extends expiration dates for both the RAP program (from 2025/2029 to 2029/2034) and the FORA program (from 2026/2030 to 2029/2034), and sets the FHCF's contract year obligation limit at $17 billion.