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FL S1668
Bill
AI Summary
- Increases the Florida Hurricane Catastrophe Fund (FHCF) retention multiple from $4.5 billion to $8.5 billion beginning June 1, 2024, and sets the fund's contract year obligation at a fixed $17 billion rather than tying it to actual claims-paying capacity
- Adds a 100-percent coverage level option for FHCF reimbursement contracts, caps loss adjustment expenses at the lesser of 25 percent of total subject losses or actual loss adjustment expenses, and requires hurricane loss projections to be based on an average of all catastrophe models approved by the Florida Commission on Hurricane Loss Projection Methodology
- Freezes the FHCF cash build-up factor (currently 25 percent) for a 12-month period beginning in the 2024-2025 contract year through no later than July 1, 2025, with savings required to be passed directly to consumers, and directs a $580 million transfer from the FORA Fund into the FHCF to offset losses from the freeze
- Restructures the Reinsurance to Assist Policyholders (RAP) program to make coverage voluntary rather than mandatory, expands covered events beyond hurricanes to include tropical storms, tornadoes, hail, wind events, and wildfires, increases the aggregate coverage limit to $4 billion, requires actuarially indicated premiums, and extends the program's expiration to 2029 or 2034
- Revises the Florida Optional Reinsurance Assistance (FORA) program by reducing coverage from four layers to three above a $500 million industry retention, increasing the maximum aggregate coverage to $3 billion per contract year, requiring actuarially indicated premiums, and extending expiration dates to 2029 or 2034
Legislative Description
Florida Hurricane Catastrophe Fund and Reinsurance Assistance
Last Action
Died in Banking and Insurance
3/8/2024
Full Bill Text
No bill text available