Bill > S1712

Introduced Session

An act relating to the Florida Hurricane Catastrophe Fund and reinsurance assistance; amending s. 215.555, F.S.; deleting obsolete language; specifying the retention multiple for specified contracts under the Florida Hurricane Catastrophe Fund program beginning on a certain date; providing the adjusted retention multiple for insurers electing the 100-percent coverage level; requiring that the reimbursement contract contain a promise by the State Board of Administration to reimburse the insurer a specified percentage of its losses and applicable loss adjustment expenses; specifying the loss adjustment expense for specified contracts and rates; modifying the contract obligation of the board for a contract year; conforming provisions to changes made by the act; deleting provisions relating to reimbursements; requiring that the hurricane loss portion of a specified formula be determined by averaging the results of certain catastrophe models; authorizing, rather than requiring, a certain formula to provide for a cash build-up factor; requiring the cash build up factor to be frozen beginning in a specified contract year and to freeze for a specified period ending by a specified date; requiring that the savings realized as a result of the freeze of the cash build up factor be passed to consumers; requiring the board to file certain premiums with the Office of Insurance Regulation; requiring the office to review such premiums; prohibiting certain costs from being added to the cost of the reimbursement contracts; amending s. 215.5551, F.S.; revising definitions applicable to the Reinsurance to Assist Policyholders (RAP) program; defining the term “eligible RAP insurer”; deleting the definition of the term “RAP qualification ratio”; authorizing, rather than requiring, eligible RAP insurers to purchase RAP coverage; revising reimbursement under the RAP program; revising the requirements of reimbursement contracts; deleting calculations for specified amounts of losses to determine reimbursement under the program; deleting insurer eligibility requirements; deleting provisions regarding deferral of coverage under the program; requiring that reimbursement contracts require that insurers annually pay actuarially indicated premiums; deleting a prohibition against insurers being charged premiums for participation in the program; revising obsolete dates; prohibiting transfers from exceeding a specified amount each contract year; revising reporting requirements; revising the expiration date of provisions governing the program; amending s. 215.5552, F.S.; revising definitions; revising the coverage layers of the Florida Optional Reinsurance Assistance (FORA) program; revising the coverage limits for certain coverage layers; increasing the maximum aggregate coverage limit for all coverage layers; revising obsolete dates; revising requirements of the reimbursement contract; deleting the calculation of payout multiples; revising the FORA layer retention calculations; revising the calculation of premiums under the program; increasing the amount that certain transfers may not exceed in a contract year; requiring a transfer of a specified amount from the FORA Fund into the Florida Hurricane Catastrophe Fund; revising the expiration date of provisions governing the program; providing an effective date.

Nick DiCeglie (R)*, 

Indefinitely postponed and withdrawn from consideration (on 05/03/2025)

Official Document