Florida Hurricane Catastrophe Fund Maximum Statutory Adjusted Capacity for Mandatory Coverage, Maximum Statutory Coverage for Optional Coverages and Aggregate Retention for the 2011 Contract Year
Dec 1, 2010
The Florida State Board of Administration (“SBA”) has published official notice of the Florida Hurricane Catastrophe Fund (“FHCF”) maximum statutory adjusted capacity for mandatory FHCF coverage, the maximum statutory coverage for any optional FHCF coverage and the aggregate fund retention used to calculate individual insurer’s retention multiples for the Reimbursement Contract Year commencing on June 1, 2011.
As provided by Florida law, the maximum statutory adjusted capacity for the mandatory coverage is $17 billion. The maximum statutory coverage for the optional FHCF Temporary Increase in Coverage Limits coverage is $6 billion. The maximum statutory coverage for the optional coverage available under s. 215.555(4)(b)4., F.S. to insurers that purchased coverage under that subparagraph in 2008, limited apportionment companies and insurers that have been approved to participate in the Florida Insurance Capital Build-Up Incentive Program is $980 million.
These calculations are based on the number of companies that qualify under s. 215.555(4)(b)4., F.S. as of the date of the SBA’s official notice (December 1, 2010) and on one reinstatement of the “per event” limit.
The aggregate fund retention used to calculate individual insurer’s retention multiples is $7.369 billion.
Should you have any questions or comments, please contact Colodny Fass.
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