This bill amends the Florida Hurricane Catastrophe Fund by revising the definition of "retention" and establishing new requirements for reimbursement contracts. It mandates that these contracts include a promise from the State Board of Administration to reimburse insurers for applicable loss adjustment expenses. For contracts effective on or after June 1, 2026, the loss adjustment expense included must be the lesser of 15% of total subject losses before reimbursement or the total actual loss adjustment expenses. Additionally, the bill specifies that the hurricane loss portion of the premium calculation formula must be determined by averaging results from catastrophe models accepted by the Florida Commission on Hurricane Loss Projection Methodology.

The bill also introduces a cash build-up factor that may be included in the premium formula, with a stipulation that this factor must be zero for the 2026-2027 contract year. Other changes include the deletion of obsolete provisions and adjustments to how retention multiples are calculated based on coverage levels elected by insurers. The effective date for this act is set for July 1, 2026.