Florida Hurricane Catastrophe Fund Advisory Council Approves Changes to Proposed Rules Relating to Insurer Reporting Requirements, Responsibilities

The Florida Hurricane Catastrophe Fund (“FHCF”) Advisory Council (“Council”) met via teleconference yesterday, February 23, 2011, during which it approved the filing of a Notice of Change for proposed Rules 19-8.029 and 19-8.030, F.A.C., and the filing of these Rules, as amended, for final adoption.  To view the meeting agenda, click here.

The Notice of Change to be filed is attached for review.

• Proposed Rule 19-8.029:  Insurer Reporting Requirements–The proposed changes relate to the FHCF’s Proof of Loss Report (FHCF-L1B) and would require an insurer to provide the amount of loss for specific categories of coverage, such as building, appurtenant structure, contents and additional living expense.  The proposed changes also require documentation for a policyholder’s legal fees, if provided; payment history and all adjuster estimates, including public adjuster estimates, if provided to the company.  An existing provision requiring diary/claim notes was eliminated.
• Proposed Rule 19-8.030:  Insurer Responsibilities–While the proposed Rule 19-8.029 has not been changed since its December 30, 2010 publication, the proposed revisions would impact its incorporated forms.  Mirroring the changes to form FHCF-L1B, these would revise part of form FHCF-LAP1 under the section entitled “Required Records to Have Available On-Site,” by requiring an insurer to provide the amount of loss for specific categories of coverage, such as building, appurtenant structure, contents and additional living expense.

On the FHCF Loss Examination Advance Preparation Instructions (Form FHCF-EAP1), the requirement (Section 3, paragraph k) to evidence that a policy complies with the South Florida Building Code was eliminated.

“These are just administrative changes, nothing controversial,” explained Council Chairman David Walker.

FHCF Chief Operating Officer Jack Nicholson then gave the Chief Operating Officer’s report.  Dr. Nicholson told the Council that the FHCF is moving forward with the normal process of preparing for hurricane season, and is in the process of developing its premium formula with several actuaries.

He reminded the Council that, from May 24 and 25, the FHCF is holding its annual Participating Insurers’ Workshop in Orlando.  The purpose of the event is to educate participating insurers on various changes to the FHCF’s Contract, Data Call and premium formula, he said.

Several Council members asked to be kept updated bills pending in the Florida Legislature that could affect FHCF-related issues.

To view the most recently amended copies of each of the proposed Rules and their accompanying forms, click here. 

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

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