FPCA Homeowners Division: Comments Requested on Proposed Statutory Definition of ‘Actuarially-Sound’

Feb 6, 2009

Florida State Representative Bryan Nelson (R-Apopka) has asked for comments on a proposed statutory definition of “actuarially-sound” to be included in a House Bill addressing Citizens Property Insurance Corporation.  The proposed definition is below for your review.  Please forward your comments and suggestions to Katie Webb at kwebb@cftlaw.com by February 11, 2009.

(m)1.  Rates for coverage provided by the corporation shall be actuarially-sound and subject to the requirements of s. 627.062, except as otherwise provided in this paragraph. For the purposes of this paragraph, actuarially-sound rates means a rate at least sufficient for a certain classification of risk in a  certain rating area to generate sufficient revenue to cover all expected losses and expected expenses plus a rate factor of 15% representing a capital charge.