FHCF Holds Hearing on Proposed Reimbursement Premium Formula Rule: May 18
May 18, 2009
Today, May 18, 2009, the Florida Hurricane Catastrophe Fund (“FHCF”) held a hearing on proposed Rule 19-8.028, entitled Reimbursement Premium Formula. The purpose of the Rule is to adopt the Premium Formula to determine the Actuarially Indicated Reimbursement Premium, to be paid to the FHCF as required by Florida law. The incorporated documents may be obtained at the FHCF website, www.sbafla.com/fhcf.
FHCF Senior Attorney Tracy Allen presided over the brief hearing, which did not include any testimony, and offered a short explanation of the proposed Rule. It was noted that a notice of change will be filed if House Bill 1495 becomes law, as expected. Among other provisions, HB 1495 includes a five percent cash build-up, a $2 billion reduction in the Temporary Increase in Coverage Limits (“TICL”), and an increase in the premium factor. The bill will become law on May 30, 2009, or upon Florida Governor Charlie Crist’s signature, unless the Governor opts to veto the bill. In the event of a veto, the Rule will be presented to the State Board of Administration for adoption.
Should you have any questions or comments, please contact Colodny Fass.