FHCF to Consider Financing Options
Mar 4, 2009
At the scheduled March 10, 2009 Florida Cabinet meeting, the Florida Hurricane Catastrophe Fund will request approval to proceed with exploring terms and pricing for the following financing product options:
- Cash capital markets products such as “pre-event financing” (similar to the purchase of such products in the past)
- Bank market standby agreements to provide the FHCF with a liquidity bridge
- Contingent capital market products that include “put” options or similar agreements
- Traditional reinsurance
- Finite reinsurance
- Alternative risk transfer products
It is noted that, of the various product ideas listed above, only products 3, 4, or 5 are considered viable, given the financial market conditions and the needs of the FHCF. Of these, product 3 is ranked as the most promising choice, given its potential benefits and costs.
In addition, efforts have already begun to seek a private letter ruling from the Internal Revenue Service for the issuance of pre-event tax-exempt bonds, however, the FHCF indicates that this initiative is not likely to result in benefits for the 2009/2010 Contract Year.
March 18 FHCF Rule Hearing Canceled
The previously-scheduled March 18, 2009 proposed Rule Hearing to amend the 2009-2010 FHCF Reimbursement Contract has been canceled.
March 20, 27 FHCF Advisory Council Meetings Scheduled
The FHCF Advisory Council has scheduled meetings to be held on Friday, March 20 and Friday, March 27, 2009. The agenda includes:
- Approval of the 2009-2010 Contract Year FHCF Reimbursement Premium Formula;
- Approval to file Rule 19-8.028: Reimbursement Premium Formula for Notice of Proposed Rulemaking;
- Filing of the Reimbursement Premium Formula Rule for Adoption if no member of the public requests a timely hearing.
The Friday, March 20 meeting is scheduled 9:00 a.m-3:00 p.m. in the Hermitage Conference Room, 1801 Hermitage Boulevard, Tallahassee and via teleconference. The call-in number for this meeting is 888.808.6959; conference code: 4765251363.
If determined to be necessary during the March 20 meeting, an additional Advisory Council meeting will be held on Friday, March 27, 2009 from 10:00 a.m.-Noon via teleconference. The call-in number for this meeting is: 888.808.6959; conference code: 4765251363.
OIR March 10 Cabinet Agenda
In addition to presenting its 2009 Legislative Agenda, the Florida Office of Insurance Regulation will also present the following items to the Cabinet/Florida Financial Services Commission:
- Request for approval to adopt the following proposed Rules:
- 69O-163.0075: Term and Evidence of Insurance
- 69O-163.009: Determination of Reasonableness of Benefits in Relation to Premium Charge
- 69O-163.011: Credit Disability Insurance Rates
- 69O-164.040: Determining Reserve Liabilities for Preneed Life Insurance
- 69O-157.302: Facility-Only Rates
- 69O-157.303: Home Health Care-Only Rates
- 69O-157.304: Comprehensive-Only Rates
- Request for approval for publication of the following proposed Rules:
- 69O-149.205: Indemnity Standard Risk Rate
- 69O-149.207: Health Maintenance Organization Standard Risk Rates
- 69O-149.003: Rate Filing Procedures
- 69O-149.005: Reasonableness of Benefits in Relation to Premiums
- 69O-149.007: Annual Rate Certification Filing Procedures
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com