The bill amends section 215.555 of the Florida Statutes, which governs the Florida Hurricane Catastrophe Fund, by revising the definition of "retention" and updating reimbursement amounts for property insurers. It establishes that for the contract year beginning June 1, 2026, the retention multiple will change, and the reimbursement contract will cover 45%, 75%, or 90% of losses, with loss adjustment expenses capped at the lesser of 15% of total subject losses or actual expenses. Additionally, the bill makes the inclusion of a cash build-up factor in the premium formula optional and sets it to zero for the 2026-2027 contract year. These changes aim to enhance the operational efficiency of the fund and improve the financial stability of participating insurers.

Moreover, the bill clarifies that risk retention groups registered in Florida are considered authorized insurance companies and outlines their operational requirements, including the submission of plans and financial statements. It mandates that policies issued by these groups include a notice regarding their regulatory status and the unavailability of state insolvency guaranty funds. The bill also requires risk retention groups to use a licensed agent in Florida for insurance transactions and prohibits soliciting from ineligible members. Additionally, it reenacts a provision related to the Reinsurance to Assist Policyholders program, ensuring a $2 billion reimbursement layer for eligible insurers. The act is set to take effect on July 1, 2026.

Statutes affected:
H 1053 Filed: 627.944