FHCF Reimbursement Contract Rule Hearing Scheduled for March 25

The Florida State Board of Administration (“SBA”), Florida Hurricane Catastrophe Fund (“FHCF”), has issued a Notice of Proposed Rule hearing for the following Rules:

RULE NO: RULE TITLE
19-8.010: Reimbursement Contract
19-8.012: Procedures to Determine Ineligibility for Participation in the Florida Hurricane Catastrophe Fund and to Determine Exemption from Participation in the Florida Hurricane Catastrophe Fund
19-8.013: Revenue Bonds Issued Pursuant to Section 215.555(6), F.S
19-8.029: Insurer Reporting Requirements
19-8.030: Insurer Responsibilities

The hearing has been scheduled for March 25, 2008, from 2 p.m. – 5 p.m. (EST)

State Board of Administration
Room 116 (Hermitage Conference Room)
1801 Hermitage Blvd., Tallahassee, FL

The FHCF seeks to amend the rules listed above to implement Section 215.555, Florida Statutes, including the changes made to the law during 2007.

Rule 19-8.010, F.A.C., Reimbursement Contract: The proposed amendments to 19-8.010, F.A.C., adopt the Reimbursement Contract for the Contract Year 2008-2009, including the three addenda:

Addendum No. 1: This addendum incorporates the Temporary Emergency Options for Additional Coverage “TEACO” program. This program allows insurers to purchase its FHCF premium share of a $1 billion, $2 billion, or a $3 billion layer of coverage below the mandatory FHCF layer of coverage.

Addendum No. 2: This addendum incorporates the Temporary Increase in Coverage Limit Options “TICL” program. This program allows insurers to choose from one of twelve options for increasing their level of FHCF coverage above and beyond the mandatory FHCF coverage.

Addendum No. 3: This addendum gives effect to the extension of FHCF coverage to policies of liquidated insurers taken over by Citizens Property Insurance Corporation pursuant to changes made to the law by the Legislature in 2007 in CS/SB 2498.

Rule 19-8.012, F.A.C., Procedures to Determine Ineligibility for Participation in the Florida Hurricane Catastrophe Fund and to Determine Exemption from Participation in the Florida Hurricane Catastrophe Fund due to Limited Exposure: The proposed amendments to Rule 19-8.012, F.A.C., update and adopt forms for ineligibility and exemption from the FHCF and also provide that an insurer which has been granted ineligibility or de minimis status and then fails to execute and return the Reimbursement Contract to the FHCF within thirty days of losing such ineligible or exempt status will not be reimbursed for losses occurring prior to the receipt by the FHCF of the executed Reimbursement Contract.

Rule 19-8.013, F.A.C., Revenue Bonds Issued Pursuant to Section 215.555(6), F.S.:
The proposed amendments to Rule 19-8.013, F.A.C., update the rule to incorporate the changes to the rapid cash build-up factor made by the Legislature during 2007 and to exclude Multi-Peril crop policies reinsured or subsidized by the Federal Government from the emergency assessment as the result of the decision in National Crop Insurance Services, Inc. et al. v. Office of Insurance Regulation, Case No. 2006 CA 2594 (Fla. 2nd Cir. Ct. 2007).

Rule 19-8.029, F.A.C., Insurer Reporting Requirements: The proposed amendments to Rule 19-8.029, F.A.C., update and adopt the forms for insurer exposure and loss reporting to the FHCF for the 2008-2009 Contract Year and incorporates a new Company Contact form on which insurers designate individuals to be their official contacts.

Rule 19-8.030, F.A.C., Insurer Responsibilities: The proposed amendments to Rule 19-8.030, F.A.C., incorporate the 2007 Special Legislative Session’s changes to the law, and update and adopt forms for insurer exposure and loss examinations and reporting to the FHCF for the 2008-2009 Contract Year, increases the resubmission fees for resubmissions resulting from an examination, and provides that optional coverages will be lost if the Addendum offering such optional coverage is not executed and returned timely.

 

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

 

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