SBA Denies Tower Hill FHCF Petition

On December 12, 2008, the Florida State Board of Administration (“SBA”) issued a Denial of its Petition for Emergency Waiver or Variance filed by Tower Hill Insurance Group, LLC (“Tower Hill”)on November 12, 2008.

Tower Hill’s petition, which was submitted on behalf of five of its member companies to the SBA, claimed that, because of the Florida Hurricane Catastrophe Fund’s (“FHCF”) inadequate resources to fully reimburse insurers for losses greater than $16.2 billion, these companies’ FHCF premiums would be in excess of the premium that should be charged for the available FHCF coverage amount. 

Tower Hill sought an emergency waiver or variance from the 2008-2009 FHCF reimbursement premium formula that would recalculate and implement a lower FHCF premium payment that “more accurately reflects the level of coverage actually available to insurers under the reimbursement contracts.” 

Among the reasons for the SBA’s denial of Tower Hill’s petition were that there can be no waiver or variance to a statute, and that the FHCF has historically paid reimbursement in full and could do so this year.  

Further, the Denial noted that Tower Hill had received exactly what it is entitled to pursuant to the law and the FHCF Reimbursement Contracts, and that no harm had been done to Tower Hill during the 2008/2009 Contract Year.   

In denying the Petition, the SBA found that Tower Hill had sustained no substantial hardship, and that “no emergency existed” as a result its being a party to the FHCF reimbursement contract.

The Denial of Petition and additional related materials are attached via hyperlink below for your review:

• Denial of Tower Hill Petition
• Homeowners Choice 12-1-08
• Homewise Letter
• Intervention
• The Metropolitan Property & Casualty Insurance Company

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

To unsubscribe from this newsletter, please send an email to ccochran@cftlaw.com.