State Senator Richter Files Bill Amending Florida Hurricane Catastrophe Fund Contract Year
Jan 28, 2010
Florida State Senator Garrett Richter (R- Naples) has filed Senate Bill 1460 relating to the Florida Hurricane Catastrophe Fund (“FHCF”) Contract Year. The bill, which was filed on January 27, 2010, defines “Contract Year” as “the period beginning on June 1 of a specified calendar year and ending on May 31 of the following calendar year.” SB 1460 also would amend the FHCF retention multiple, which would be equal to $4.5 billion and adjusted based upon the reported exposure of the FHCF two years before the current FHCF Contract Year.
The bill would increase the exposure of the FHCF and, accordingly, the claims paying obligation of the Florida State Board of Administration (“SBA”) by $2 billion, up to a limit of $17 billion.
Under the provisions of SB 1460, the SBA would be required to adopt the FHCF Reimbursement Contract for a particular Contract Year by February 1 of the immediately preceding Contract Year. However, the bill stipulates that the Reimbursement Contract would be adopted as soon as possible in advance of the 2010-2011 FHCF Contract Year.
SB 1460 would mandate that insurers writing covered policies shall execute the Reimbursement Contract by March 1 of the immediately preceding Contract Year. Further, the Contract would have an effective date as defined by the “Contract Year.”
No companion legislation has been filed in the House yet, nor has the Senate bill been assigned to any committees. To view complete bill information, click here.
Should you have any comments or questions, please contact Colodny Fass.
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