Florida Hurricane Catastrophe Fund Contract Year Glitch Bill Passes House 115-0; Ready for Governor’s Signature
Mar 24, 2010
The Florida Hurricane Catastrophe Fund (“FHCF”) Contract Year will be returned to June 1 through May 31 beginning June 1, 2010 if Florida Governor Charlie Crist signs SB 1460, which was passed today in the Florida House of Representatives by a vote of 115-0.
The FHCF Contract Year, after being legislatively curtailed in 2009, had created unintended negative financial consequences for insurers due to the way in which the cost of reinsurance is amortized on their financial statements.
Without passage of SB 1460, an insurer’s 2010 financial statement would show a larger-than-normal expense associated with the purchase of FHCF reinsurance.
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