Florida Cabinet Advances 2011 Florida Hurricane Catastrophe Fund Reimbursement Contract Rule

The Florida Cabinet met yesterday, October 13, 2010, during which it approved a State Board of Administration (“SBA”) request to authorize the filing of a Notice of Proposed Rule for proposed Rule 19-8.010, F.A.C., which relates to the 2011 Florida Hurricane Catastrophe Fund (“FHCF”) Reimbursement Contract.   With no discussion or objection from the members, the Cabinet also approved the proposed Rule to be filed for final adoption if no member of the public requests a Rule Hearing after the aforementioned Notice.

To view the complete Cabinet agenda, click here.

A September 29 SBA Rule Development Workshop on proposed Rule 19-8.010 also included discussion on other related FHCF proposed regulations, addendums and their respective forms.

Among other revisions, proposed amendments to the 2011 FHCF Reimbursement Contract would require an insurer to execute a final commutation agreement after 36 months.  This action would constitute a complete and final release of all SBA obligations with respect to claims and losses.  Should the insurer choose not to execute the final commutation agreement, the SBA would be released from all obligations 60 months following the FHCF Contract Year if no indicated reimbursable loss has been filed. 

Hyperlinks to proposed Rule 19-8.010 and its related documents are provided below.  To view all related proposed Rules, click here.

Rule 19-8.010 – Reimbursement Contract

• 2011 Reimbursement Contract
• Addendum No. 1 to Reimbursement Contract (Optional $10 Million)
• Addendum No. 2 to Reimbursement Contract (TICL Option)
• Addendum No. 3 to Reimbursement Contract (Citizens)
• Optional Amendment to Change Prior Elections

Should you have any questions or comments, please contact Colodny Fass.

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