No. HB 1053
Filed under Taxes & Budget.
Insurers; Revises definition of term "retention" for purpose of reimbursement from Florida Hurricane Catastrophe Fund; revises reimbursement amount promised by board in contract with property insurers; revises minimum of loss adjustment expenses; provides hurricane loss portion of formula that determines actuarially indicated premiums to be paid to fund; authorizes, rather than requires, such formula to provide for cash build-up factors; removes obsolete language; revises cash build-up factor for specified contract year; provide that risk retention groups registered to do business in state are deemed insurance companies authorized go do business in state.
Plain English Summary
AI-GENERATEDInsurers must pay premiums based on a new hurricane loss formula using accepted catastrophe models.
The fund's reimbursement for loss adjustment expenses increases from 10% to 15% of total subject losses.
The cash build-up factor for the 2026-2027 contract year is set to zero.
Out-of-state risk retention groups registered in Florida are now deemed authorized insurance companies.
AIGrants automatic authorization to operate in Florida for out-of-state risk retention groups.
AIRequires the premium calculation formula to use specific state-approved catastrophe models.
AIIncreases the reimbursement percentage for loss adjustment expenses from 10% to 15%.
AIRemoves the 25% cash build-up factor for the 2026-2027 contract year, reducing premiums.