Florida Cabinet Advances 2015-2016 Reimbursement Contract Rulemaking

 

The Florida Cabinet met today, September 23, 2014, during which it granted authority to the Florida Hurricane Catastrophe Fund (“FHCF”) to publish a Notice of Proposed Rule for Rule 19-8.010 relating to the 2015-2016 FHCF Reimbursement Contract (“Contract”).

The proposed Rule would adopt the Contract for the FHCF Contract Year beginning June 1, 2015. (Florida’s State Board of Administration (“SBA”) is required to adopt the Contract no later than February 1, 2015.)

In addition to several non-substantive editorial changes and corrections to reflect statutory language, the 2015-2016 Contract includes the following clarifications and changes to the 2014 version:

• The exclusion for policies that provide a layer of coverage above or below other windstorm or hurricane coverage is revised to also apply to policies that provide a layer of coverage below a layer of self-insured windstorm or hurricane coverage.
• The exclusion for barns and barns with apartments is clarified to also apply to barns with living quarters.
• Provisions relating to the reporting of a single structure that has a mix of commercial habitational and commercial non-habitational exposures are revised to clarify that the reporting requirements for exposures also apply to ultimate net loss as reported on the FHCF Proof of Loss report.

To view the complete summary of changes, click here (begins on Page 17).  The markup text of the proposed Rule begins on page 21.

The amended Rule will be filed for adoption if no member of the public requests a hearing. 

The next Cabinet Meeting is scheduled to be held on November 12, 2014.

SBA Executive Director Ash Williams, who presented the Contract agenda item, also reviewed the FHCF investment performance report as part of his regular quarterly update on SBA-managed funds.  The FHCF operating fund was reported to total $8 billion.

Both the FHCF’s operating fund and its CAT 2013 A Fund are internally managed portfolios benchmarked to a blend of the average of the Three-Month Treasury Bill rate and the iMoneyNet First Tier Institutional Money Market Funds Net Index, it was explained.

As of June 30, 2014, the total value of all FHCF accounts was $11.9 billion.

To view today’s complete Cabinet agenda, click here.

 

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

 

 

Click here to follow Colodny Fass& Webb on Twitter (@CFTLAWcom)

 

 

 

To unsubscribe from this newsletter, please send an e-mail to Brooke Ellis at bellis@cftlaw.com.