No. HB 1349
Filed under Taxes & Budget.
Florida Hurricane Catastrophe Fund; Revises provisions for Florida Hurricane Catastrophe Fund including, retention multiple, adjusted retention multiple, reimbursement contracts, loss adjustment expense, contract obligations, reimbursements, reimbursement premiums, & reinsurance.
Plain English Summary
AI-GENERATEDInsurers face a retention multiple of $8.5 billion, up from $4.5 billion, for the 2026 contract year. This significantly increases the amount of hurricane losses each insurer must absorb before the fund reimburses them.
The fund's total reimbursement obligation is capped at $17 billion per contract year. The previous law allowed this limit to grow if the fund had sufficient claims-paying capacity, but that growth mechanism is deleted.
Insurers can now elect 100-percent coverage, a new option added to the existing 45, 75, and 90-percent levels. This allows insurers to shift more risk to the state fund.
The cash build-up factor in premium calculations is frozen for 12 months starting in the 2026-2027 contract year. Savings from this freeze must be passed directly to consumers.
AIRaises the insurer's retention multiple from $4.5 billion to $8.5 billion for the 2026 contract year, increasing the amount of losses insurers must absorb before the fund reimburses them.
AIChanges the loss adjustment expense reimbursement from 10 percent of reimbursed losses to the lesser of 25 percent of total subject losses or actual loss adjustment expenses, potentially increasing the fund's payout for LAE.
AIFreezes the 25 percent cash build-up factor for the 2026-2027 contract year, requiring any savings from the freeze to be passed directly to consumers.
AIProhibits adding the cost of reinsurance or capital market transactions to the actuarially determined cost of reimbursement contracts, preventing insurers from passing these costs to policyholders via premiums.