Financial Services Commission Meeting 6/15/06
Jan 12, 2007
Today the Financial Services Commission approved the request for approval to publish a notice of rulemaking for new Rule 69O-142.015 related to Standardized Requirements Applicable to Insurers After Hurricanes or Natural Disasters. Section 24 of Senate Bill 1980 created Section 627.7019, which requires that the FSC adopt by rule standardized requirements that may be applied to insurers subsequent to a hurricane or other natural disaster. The rule provides for claims reporting requirements, grace periods for payment of premiums, performance of other duties by insureds and temporary postponement of cancellations or nonrenewals. The previous 2004 and 2005 emergency rules, orders and memorandums were used as a basis for developing the rule. A copy of the Agenda is attached.
In addition, the Florida Hurricane Catastrophe Fund Finance Corporation Board met and approved the adoption of a resolution authorizing the negotiation of a pre-event financing in an amount not exceeding $2.8 billion to establish a liquidity program to reimburse insurance companies for losses in the event of future hurricanes. The pre-event financing will have variable interest rates, will not be exempt from federal income taxes and will be secured by reimbursement premiums and emergency
assessments received by the Florida Hurricane Catastrophe Fund. It is anticipated that any funds borrowed through the pre-event financing will be held in a designated account and invested until such time as the funds are needed to reimburse insurance companies.
Should you have any questions or concerns, please do not hesitate to contact this office.
Regards,
Fred E. Karlinsky