Review of Specific Changes to the Florida Hurricane Catastrophe Fund 2011-2012 Reimbursement Contract
Dec 21, 2010
Effective December 12, 2010, certain changes became effective to Rule 19-8.010, F.A.C., which relates to the Florida Hurricane Catastrophe Fund (“FHCF”) Reimbursement Contract (“Contract”).
The changes, among which provide for the Contract to be effective from June 1, 2011 through May 31, 2012, also specify that an insurer must elect the FHCF’s Temporary Increase in Coverage Limits (“TICL”) by March 1, 2011; otherwise, the company will be deemed to have rejected it. Last year’s Contract (2010-2011) required election of TICL coverage by June 1.
Further, only six of the prior eight TICL coverage options will be available for the 2011-2012 Contract year. The $7 billion and $8 billion coverage options will no longer be available.
Another key change is to the commutation process.
To provide further detail on the specific changes to the 2011-2012 FHCF Contract, Colodny Fass has prepared the attached comprehensive memorandum.
Should you have any questions or comments, please contact Colodny Fass.