In a surprise move on Saturday morning, a Senate committee attached a watered-down Cat Fund reform measure onto the Citizens assessment bill, SB 1346. The combined Citizens/Cat Fund bill is now ready for final consideration this coming week (last week of 2012 session).
For eight weeks, reform of the Florida Hurricane Catastrophe Fund ("Cat Fund") has seemed improbable. The buzz was that the House was not going to hold a hearing on HB 833, so why should the Senate bother with counterpart SB 1372. That made the Saturday morning move so unexpected. Passage should still be viewed as a long-shot, although odds have improved.
The revised Senate bill is limited to two changes, to be phased-in over the next three years: (1) it reduces the Cat Fund's reinsurance capacity by $2 billion (to $15 billion); and (2) it reduces the maximum insurer reimbursement percentage (co-payment) to 80% (from 90%).
For more on week 8, see Week 8, 2012; action shifts to Senate; one week to go.
For more on the original Cat Fund bill, see Cat Fund reform sails through first committee, future cloudy.
For more on the Citizens Property Insurance Corporation assessment bill, see Property insurance reform has productive Week 2.
This summary was prepared by Perry Cone and posted at TallyInsLaw.com.
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