Florida Cabinet Approves Florida Hurricane Catastrophe Fund 2012/2013 Premium Formula and 2012/2013 Proposed Rates
Apr 24, 2012
At its regular meeting today, April 24, 2012, the Florida Cabinet approved the 2012/2013 Florida Hurricane Catastrophe Fund (“FHCF”) Premium Formula and the proposed 2012/2013 FHCF rates.
State Board of Administration (“SBA”) Executive Director Ash Williams presented the SBA agenda items. He explained that the FHCF Premium Formula, which is developed by an outside actuary, is designed to anticipate what the loss exposure could be for the hurricane season. The 2012/2013 Premium Formula was unanimously approved by the FHCF Advisory Council, with the intention of moving in a direction of being less concentrated on debt. The FHCF continues to follow the Premium Formula that was developed in 2009, which was designed to drive insurance companies into the private sector.
Florida Governor Rick Scott asked Mr. Williams about concerns regarding the FHCF having enough cash to pay claims. Mr. Williams replied that while the FHCF does not have enough cash to cover all insurance claims today, the 2012/2013 Premium Formula was designed to decrease reliance on debt, and provide more cash for the future.
The Cabinet also authorized the filing of a Notice of Proposed Rule for Rule 19-8.028, “Reimbursement Premium Formula.” A Proposed Rule Hearing is scheduled for May 29, 2012, if requested.
To view the SBA agenda, click here. To view the complete Cabinet meeting agenda, click here.
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