This bill amends the Florida Hurricane Catastrophe Fund and reinsurance assistance provisions, specifically targeting sections 215.555, 215.5551, and 215.5552 of the Florida Statutes. It introduces new specifications regarding the retention multiple for insurers under the Florida Hurricane Catastrophe Fund program, 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 requires that the hurricane loss portion of the reimbursement formula be determined by averaging results from approved catastrophe models and introduces a cash build-up factor that will be frozen starting in the 2025-2026 contract year, with any savings passed on to consumers.

Additionally, the bill modifies the Reinsurance to Assist Policyholders (RAP) program by refining eligibility criteria, expanding the definition of "covered event," and introducing a reimbursement layer of $2 billion per event for eligible RAP insurers. It increases the cumulative transfer limit for funds from $2 billion to $4 billion for each contract year and mandates the Executive Office of the Governor to instruct the Chief Financial Officer to transfer $580 million from the FORA Fund to the Florida Hurricane Catastrophe Fund by July 1, 2025. The bill also establishes reporting requirements for the board and sets expiration dates for certain provisions based on fund transfers, ensuring that the program remains responsive to the needs of Florida's property insurance market.

Statutes affected:
S 1712 Filed: 215.5551