Bill > S1448

This bill makes several changes to the Florida Hurricane Catastrophe Fund, which provides reinsurance to insurers for hurricane losses. It revises the definition of "retention," which is the amount of losses an insurer must cover before the fund reimburses them, by changing the calculation for the contract year beginning June 1, 2026. Importantly, reimbursement contracts will now explicitly require the State Board of Administration (SBA) to reimburse insurers for applicable loss adjustment expenses, which are the costs associated with handling claims, and for contracts and rates effective on or after June 1, 2026, these expenses will be capped at the lesser of 15% of total subject losses before reimbursement or the actual total loss adjustment expenses. The bill also alters how the hurricane loss portion of the premium calculation is determined, requiring it to be based on an average of accepted catastrophe models, and changes the provision for a "cash build-up factor," which is a mechanism to increase the fund's reserves, from being mandatory to optional, while also mandating that this factor be zero for the 2026-2027 contract year.

https://www.flsenate.gov/Session/Bill/2026/1448