Bill > H1349

This bill modifies the Florida Hurricane Catastrophe Fund, a state-run insurance program designed to help insurers cover losses from major hurricanes. Key changes include updating the retention multiple, which is the amount of losses an insurer must absorb before the fund reimburses them, to $8.5 billion for the contract year beginning June 1, 2026, and specifying that insurers electing 100-percent coverage will have an adjusted retention multiple of 90 percent of that amount. The bill also mandates that reimbursement contracts must include a promise from the State Board of Administration (SBA) to reimburse insurers for a specified percentage of their losses and applicable loss adjustment expenses, with specific rules for calculating these expenses. The contract obligation of the SBA regarding the fund's capacity is clarified, and provisions related to how reimbursements were previously determined are removed. Furthermore, the bill requires the hurricane loss portion of the premium formula to be determined by averaging results from approved catastrophe models, and it allows, rather than requires, the formula to include a cash build-up factor, which will be frozen from the 2026-2027 contract year for a period ending by July 1, 2027, with any savings passed to consumers. The SBA will now file premiums with the Office of Insurance Regulation (OIR) for review, and the cost of certain capital market transactions, like reinsurance, may not be added to the cost of reimbursement contracts.

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https://www.flsenate.gov/Session/Bill/2026/1349