Florida catastrophe fund cut gets panel’s OK

Apr 15, 2008

Miami Herald--April 15, 2008

The House Policy and Budget Council gave the nod Monday to a bill that would reduce the size of the Florida Hurricane Catastrophe Fund by $3 billion. That would bring down the fund’s total exposure to $25 billion.

The CAT Fund sells inexpensive reinsurance to private carriers operating in Florida. State officials and lawmakers have been eager to shrink the fund to lessen the exposure for Florida residents. Shortfalls would be covered by surcharges on all insurance policies in Florida.

A similar bill is on its way to the Senate floor for a vote in the next few days.