Florida Cabinet Approves $2 Billion for Pre-Event Financing for Florida Hurricane Catastrophe Fund, The News Service of Florida reports
Jan 23, 2013
The NEWS SERVICE of FLORIDA reported the following legislative developments today, January 23, 2013, involving the Florida Hurricane Catastrophe Fund:
Cat Fund Managers Get OK for $2 billion Pre-Storm Effort
Managers of the Florida Hurricane Catastrophe Fund got the go-ahead Wednesday to secure $2 billion in financing in the event of a major storm. Without debate, the governor and Cabinet approved a resolution allowing the CAT fund to seek $2 billion in “pre-event” financing to shore up the CAT Fund for the 2013 hurricane season that begins June 1.
The fund is on the hook for $17 billion in coverage should a hurricane strike the state and cause damage greater than the private market could bear. The financing would cushion the sticker shock after a storm by reducing the amount of bonds needed to be sold after a hurricane to shore up private insurers and Citizens Property Insurance Corp.
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