No. SB 1448
Filed under Taxes & Budget.
Florida Hurricane Catastrophe Fund; Revising the definition of the term “retention”; requiring reimbursement contracts to contain a promise by the State Board of Administration to reimburse the insurer for applicable loss adjustment expenses; requiring that, for contracts and rates effective on or after a specified date, the loss adjustment expense included be a specified amount, etc.
Plain English Summary
AI-GENERATEDInsurers pay no hurricane fund premium in 2026-2027 because the cash build-up factor is set to zero.
The fund's retention calculation is simplified to a fixed $4.5 billion figure, removing the previous exposure growth adjustment.
Reimbursement contracts must now cover loss adjustment expenses directly, capping that cost at 15 percent of total subject losses.
Premium formulas must average all catastrophe models accepted by the state commission, removing the board's discretion to select specific models.
AISimplifies the retention multiple calculation by removing the historical exposure growth adjustment and the 90-percent coverage assumption.
AIChanges how loss adjustment expenses are reimbursed, capping them at the lesser of 15 percent of total subject losses or actual expenses.
AIRequires the hurricane loss portion of the premium formula to be determined by averaging results from all accepted catastrophe models.
AIMakes the cash build-up factor optional and mandates it be zero for the 2026-2027 contract year.