Update: Amendment to Extend Limited Apportionment Coverage Adopted onto SB 2156 FHCF Reduction Bill

UPDATE:  A copy of the amendment adopted this morning to SB 2156 is attached for your review.

An amendment, initially submitted in handwritten format, was adopted to SB 2156 that would extend to those companies with limited apportionment status the availability of an additional $10 million of coverage from the Florida Hurricane Catastrophe Fund (FHCF) at a level significantly below the normal FHCF rate. The amendment allows all limited apportionment companies, all companies who received the drop down in 2007, and all companies approved for the Capital Build-Up Incentive Program to participate. 

Florida Chief Financial Officer Alex Sink today applauded the Florida Senate Committee on Governmental Operations for unanimously passing Senate Bill 2156 by State Senator Bill Posey (R-Rockledge), which reduces the amount of exposure Florida’s consumers have to hurricanes.
 
“I thank Senator Al Lawson, Senator Bill Posey, and their Senate colleagues for their leadership and support of this bipartisan proposal to reduce the risk of hurricane assessments on Floridians and businesses.  With their support, we will eliminate the risk of $5.5 billion in hurricane assessments if we have a bad storm.”
 
The companion bill is HB 7021, sponsored by State Representative Ron Reagan (R-Sarasota/Bradenton).
 
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This morning, April 3, 2008, Senate Bill 2156 was heard by the Senate Governmental Operations Committee.

An amendment, initially submitted in handwritten format, was adopted to SB 2156 that would extend  to those companies with limited apportionment status the availability of an additional $10 million of coverage from the Florida Hurricane Catastrophe Fund (FHCF) at a level significantly below the normal FHCF rate. This $10 million coverage amount represents an additional layer of reinsurance coverage above the insurer’s FHCF retention.

A copy of the amendment is attached for your review.

SB 2156, sponsored by Senator Bill Posey (R-Rockledge), has been promoted primarily by Florida Chief Financial Officer Alex Sink, and would reduce the amount of reinsurance offered by the FHCF.
 

Should you have any questions or comments, please do not hesitate to contact this office.

 

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