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 from 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 revises the Reinsurance to Assist Policyholders (RAP) program by deleting certain definitions and eligibility requirements while allowing eligible insurers to purchase RAP coverage. It expands the definition of "covered event" to include various natural disasters and refines eligibility criteria for RAP insurers. The reimbursement structure is adjusted to provide 100% reimbursement for losses above the insurer's retention limit, and the bill allows for annual premium payments based on actuarial indications. Furthermore, it increases the cumulative transfer limit for funds from $2 billion to $4 billion for each contract year and modifies the notification process for fund transfers, emphasizing the requirement for the board to inform the Executive Office of the Governor. Overall, the bill aims to enhance the operational efficiency of both the hurricane catastrophe fund and the FORA program while ensuring adequate funding for insurance reimbursements in the event of catastrophic losses.

Statutes affected:
S 1712 Filed: 215.5551