CFO Proposes Managing the FCHF Within the SBA

The House Insurance Committee plans to hold a workshop to review a proposal by Florida Chief Financial Officer Alex Sink that would create a division within the Florida State Board of Administration (“SBA”) to manage the Florida Hurricane Catastrophe Fund (“FHCF”).

The proposal appears to decrease the amount of reinsurance offered by the FHCF in the Temporary Increase in Coverage Limit (“TICL”) from an aggregate of $12 billion to $9 billion, and the proposal also limits an insurer’s reimbursement amount to 70 percent of the TICL coverage.

The CFO’s proposal is attached for your review.

We will monitor the upcoming workshop and provide a report on the proceedings.

 

Should you have any questions or comments, please do not hesitate to contact this office.

 

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