Florida Property Casualty Association Files Intervention Motion in Florida On Petition Seeking Cat Fund Relief

The Florida Property & Casualty Association (“FPCA”) has filed a petition for intervention on December 9, 2008 on behalf of “similarly situated” insurance companies seeking intervention as party to an emergency petition filed on November 12, 2008 by Tower Hill Insurance Group, LLC with the Florida State Board of Administration (“SBA”).

Tower Hill’s petition seeks an emergency waiver or variance from the 2008-2009 Florida Hurricane Catastrophe Fund (“FHCF”) that would recalculate and implement a lower FHCF premium payment for Tower Hill that “more accurately reflects the level of coverage actually available to insurers under the reimbursement contracts.” 

Tower Hill’s petition, which was submitted to the SBA on behalf of five of its member companies claims that, because of the FHCF’s inadequate resources to fully reimburse insurers for losses greater than$16.2 billion, these companies’ FHCF premiums will be in excess of the premium that should be charged for the available FHCF coverage amount. 

FPCA’s intervention requests that if a rate recalculation ultimately is made by the SBA for one company, then the FHCF rates charged to all “similarly situated” companies should also be recalculated.   A “similarly situated” company would be a company that is party to an FHCF reimbursement contract.

For additional information, please contact Colodny Fass.