Florida Cabinet Approves 2013/2014 Florida Hurricane Catastrophe Fund Premium Formula and Rates
Apr 23, 2013
The Florida Cabinet met today, April 23, 2013, during which it approved the 2013/2014 Florida Hurricane Catastrophe Fund (“FHCF”) Premium Formula and Proposed Rates without discussion.
The Cabinet also approved the filing of a Notice of Proposed Rule for Rule 19-8.028 relating to the FHCF Reimbursement Premium Formula. If no hearing is requested by a member of the public, the Rule and its incorporated forms will be filed for adoption.
To view the complete State Board of Administration (“SBA”) meeting packet, click here.
An addendum to the 2013 FHCF Ratemaking Formula Report (“Report”) was noted on Page 70 of the SBA materials. At the time the Report had been presented to the FHCF Advisory Council on March 21, 2013, the FHCF was in the process of securing pre-event financing to increase its liquidity. The pre-event carrying cost expense estimates used in the March 21 Report were based on estimated values provided by FHCF’s Financial Advisor, Raymond James, on January 30, 2013. The issuance of the 2013 pre-event financing was completed in April 2013 and Raymond James provided a revised estimate of the carrying cost expense on April 10, 2013. The revised estimates reduce the projected value of FHCF expenses for the 2013 FHCF Contract Year.
The Report addendum brings premium and coverage calculations into accordance with changes made by this revision of projected carrying costs for pre-event financing.
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