Florida Hurricane CAT Fund Emergency Assessment Workshop for Authorized Users re MGA Fees 8/17/06
Jan 14, 2007
On July 28, 2006, this office sent an e-mail regarding the Florida Hurricane Catastrophe Fund Emergency Assessment Workshop for Authorized Insurers that was hosted by the Florida Office of Insurance Regulation (“Office”). Based on the Information provided at the Workshop, there has been some confusion as to whether MGA policy fees are assessable by the Florida Hurricane Catastrophe Fund (“FHCF”). We have obtained further information and would like to provide the following clarification.
We have been advised by the Office that if the insurer’s premium tax obligation in Florida includes MGA fees, then the MGA fees are subject to the FHCF emergency assessment. If the MGA fees are included as direct written premium in the insurer’s financial statement, they are assessable by the FHCF.
If you have any questions or need additional information, please do not hesitate to call.
Regards,
Fred E. Karlinsky