Actuarial Panel: Recovery of Payment of Policyholder Attorneys’ Fees Is Part of Florida Hurricane Catastrophe Fund Coverage
Dec 6, 2010
In the matter of a 2004 dispute between Sunshine State Insurance (“Sunshine State”) and the Florida Hurricane Catastrophe Fund (“FHCF”), an actuarial panel sided with Sunshine State on its position that recovery of payment of policyholder attorneys’ fees is, in fact, part of the coverage provided by the FHCF.
In the panel’s ultimate commutation decision, a copy of which is attached for review, policyholder legal fees are fully included within the commutation amount. The decision does not address any legal issues or any other proceedings involving the parties. It is specifically limited to the commutation amount applicable to these parties only.
During the dispute proceedings, the FHCF raised the issue that it was concerned that the specific claims at issue arose from an event in which Sunshine State did not exceed its FHCF retention. However, the actuarial panel discounted this argument, inasmuch as it was not the basis for the FHCF’s refusal to include the loss amount as part of the commutation.
Should you have any questions or comments, please contact Katie Webb (kwebb@cftlaw.com) at Colodny Fass.
