The bill amends various provisions related to the Florida Hurricane Catastrophe Fund and the Reinsurance to Assist Policyholders (RAP) program, specifically targeting sections 215.555, 215.5551, and 215.5552 of the Florida Statutes. It introduces new specifications regarding retention multiples for insurers, effective June 1, 2025, and mandates that reimbursement contracts include a commitment from the State Board of Administration to reimburse insurers a specified percentage of their losses and applicable loss adjustment expenses. The bill also establishes a cash build-up factor that will be frozen starting in the 2025-2026 contract year, with any savings passed on to consumers. Additionally, it revises the RAP program by deleting certain definitions and eligibility requirements, while authorizing eligible insurers to purchase RAP coverage and updating definitions and coverage layers for the Florida Optional Reinsurance Assistance (FORA) program.

Further changes include the establishment of a new premium structure for RAP reimbursement contracts, requiring insurers to pay an actuarially indicated premium for the full annual aggregate reimbursement limit. The bill allows the board to adopt emergency rules for urgent needs in the property insurance market and modifies funding limits for the RAP, increasing maximum cumulative transfers from $2 billion to $4 billion. It also introduces new reporting requirements for the board regarding reimbursements and expenditures, and mandates a transfer of $580 million from the FORA Fund to the Florida Hurricane Catastrophe Fund by July 1, 2025. The expiration date for certain provisions is set to July 1, 2030, or July 1, 2035, depending on the transfer of general revenue funds. Overall, the bill aims to enhance the operational efficiency of the hurricane catastrophe fund and improve financial stability for insurers while ensuring consumer benefits.

Statutes affected:
S 1712 Filed: 215.5551