Emergency Rule Filed to Implement New Definition of ‘Losses’ Under CS/CS/CS/SB 408
Jul 6, 2011
To ensure Reimbursement Contract forms are appropriately amended and made effective as soon as possible, the State Board of Administration filed Emergency Rule 19ER11-2 (19-8.010) on July 1, 2011 to change the definition of “losses” reimbursable by the Florida Hurricane Catastrophe Fund (“FHCF”) pursuant to provisions of CS/CS/CS/SB 408.
The new law defines “losses” as “all incurred losses under covered policies, including additional living expenses not to exceed 40 percent of the insured value of a residential structure or its contents and amounts paid as fees on behalf of or inuring to the benefit of a policyholder.”
Effective for the 2011/2012 FHCF Contract Year that began on June 1, 2011, the new language specifically excludes losses under liability coverages, property losses that are proximately caused by any peril other than a covered event, amounts paid as the result of a voluntary expansion of coverage by the insurer, amounts paid to reimburse a policyholder for condominium association or homeowners’ association loss assessments, bad faith awards, punitive damage awards, other court-imposed fines, sanctions, or penalties, amounts in excess of the coverage limits under the covered policy, and allocated or unallocated loss adjustment expenses.
The Emergency Rule was filed to implement the new legislation immediately, given the June 1 start of the 2011 Hurricane Season.
To access a full summary of CS/CS/CS/SB 408, click here.
The complete text of Emergency Rule 19ER11-2 is below:
19ER11-2 (19-8.010) Reimbursement Contract
(1) through (16) No change.
(17) The reimbursement contract for the 2011-2012 contract year, including all Amendments and Addenda, required by Section 215.555(4), F.S., which is called Form FHCF-2011K-“Reimbursement Contract” or “Contract” between (name of insurer) (the “Company”)/NAIC #( ) and The State Board of Administration of the State of Florida (“SBA”) which administers the Florida Hurricane Catastrophe Fund (“FHCF”), rev. 06/11 01/11, is hereby adopted and incorporated by reference into this rule. This contract is effective from June 1, 2011 through May 31, 2012.
(18) No change.
Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History-New 5-31-94, Amended 8-29-95, 5-19-96, 6-19-97, 5-28-98, 5-17-99, 9-13-99, 6-19-00, 6-3-01, 6-2-02, 11-12-02, 5-13-03, 5-19-04, 8-29-04, 5-29-05, 11-13-05, 5-10-06, 9-5-06, 5-8-07, 8-13-07, 6-8-08, 9-2-08, 3-30-09, 8-23-09, 3-29-10, 8-8-10, 12-12-10, 6-17-11.
THIS RULE TAKES EFFECT UPON BEING FILED WITH THE DEPARTMENT OF STATE UNLESS A LATER TIME AND DATE IS SPECIFIED IN THE RULE.
EFFECTIVE DATE: June 17, 2011
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an email to Brooke Ellis at firstname.lastname@example.org.