Florida Hurricane Catastrophe Fund 2011 Ratemaking Formula Report Released in Advance of March 17, 2011 Advisory Council Meeting

The Florida Hurricane Catastrophe Fund (“FHCF”) has released its 2011 Ratemaking Formula Report (“Report”) in advance of the FHCF Advisory Council meeting scheduled for tomorrow, March 17, 2011.  To access the Report and meeting agenda, click here.

Highlights from the Report, which is on the agenda for presentation during tomorrow’s meeting, include:

• The recommendation of a 6.28 percent increase in FHCF mandatory rates for the 2011 Contract Year. According to the Report, this increase is largely due to the change in the cash build-up factor from 10 percent in 2010 to 15 percent for the 2011 FHCF Contract Year.
• Based on the recommended rate change, the FHCF premium for mandatory coverage would increase by $70 million from $1.111 billion to $1.181 billion.
• As required by law, the rates for the FHCF’s Temporary Increase in Coverage Limit (“TICL”) optional coverage would increase by approximately 33 percent, and the maximum TICL limit would decrease from $8 billion to $6 billion.

At tomorrow’s meeting, the Advisory Council is expected to approve the 2011 FHCF Contract Year Premium Formula.  It is also expected to approve the filing of proposed Rule 19-8.028, entitled “Reimbursement Premium Formula,” for Notice of Proposed Rulemaking and its filing for adoption if no member of the public requests a Rule Hearing.

To participate in the 9:00 a.m. teleconference, call (888) 808-6959 and enter conference code 4765251363. 

If deemed necessary during the March 17 meeting, a second Workshop on proposed Rule 19-8.028 is scheduled for March 24, 2011 from 10:00 a.m. to 12:00 p.m.

A Colodny Fass representative will attend the hearing and provide a report on the proceedings.

Should you have any questions or comments, please contact Colodny Fass.

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