The bill amends section 215.555 of the Florida Statutes, which governs the Florida Hurricane Catastrophe Fund. Key changes include the specification of a new retention multiple for insurers, which will be set at $8.5 billion for the contract year beginning June 1, 2026, as opposed to the previous $4.5 billion. The bill also introduces an adjusted retention multiple for insurers opting for 100-percent coverage, which will be 90 percent of the calculated retention multiple. Additionally, the reimbursement contracts must now include a commitment from the State Board of Administration to reimburse insurers for a specified percentage of their losses and applicable loss adjustment expenses, with the reimbursement percentages expanded to include 100 percent.

Further modifications include the requirement for the hurricane loss portion of the premium formula to be determined by averaging results from approved catastrophe models, and the cash build-up factor will be frozen starting in the 2026-2027 contract year for a period ending no later than July 1, 2027, with any savings from this freeze to be passed on to consumers. The bill also mandates that the board file the premiums with the Office of Insurance Regulation for review and prohibits certain costs from being added to the reimbursement contracts. Overall, these changes aim to enhance the financial stability of the fund and ensure that consumers benefit from cost savings.