Compliance lapse comes at a high cost - FHCF

There was a big message in the $1.6 million in fines worked out with the Cat Fund for seemingly innocuous compliance lapses. Each of four homeowners insurance companies will be paying a $400,000 average fine to be released from its obligation to pay as much as $4 million to purchase TICL (Temporary Increase in Coverage Limit) optional reinsurance from the Florida Hurricane Catastrophe Fund (Cat Fund).

There was no injury to policyholders, as the companies had purchased coverage in the private reinsurance market in lieu of the TICL coverage, out of concern that the Cat Fund would not have resources to cover its TICL obligations. Fines were imposed because the four companies missed June deadlines for opting out of the TICL coverage (which the companies has selected earlier).

In dueling public statements reported yesterday, one carrier called the Cat Fund's actions "unconscionable," while the Cat Fund said that it was the companies' own fault and that the Cat Fund needed to set a precedent for future years. See 4 companies to pay $1.6 million in fines to get out of optional reinsurance coverage (Gray Rohrer, Florida Current, Sept. 27, 2012), which first reported the settlement between the carriers and the Cat Fund.

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

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Saturday surprise - Cat Fund in play last week 2012 session

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).

Cat Fund reform sails through first committee, future cloudy

After being dormant most of this session – and seemingly dead – a bill intended to “right size” the Florida Hurricane Catastrophe Fund received its first formal approval in week 6 of the 2012 Florida legislative session.

SB1372, the bill voted out of the Senate Banking and Insurance Committee, is aggressive. Most of its provisions, however, are phased in over a number of years. Here is a summary of the current Senate bill:

Mid-session report - week 5, 2012

The middle of week 5 marked the mid-point of Florida’s 2012 legislative session. Of the 30 or so insurance measures I have been following, 11 inched forward last week.

There are now four weeks left to go, with the session scheduled to end on March 9, 2012. Below is a combined week 5 update and mid-term report on a select dozen insurance matters – four of the more controversial issues still kicking around, four bills that seem poised for passage (eventually), and four that appear dead for the session.

Property insurance reform has productive Week 2 in 2012 Florida Legislature - Citizens and Cat Fund called Florida's "two sick children"

Two initiatives intended to further reform Florida's property insurance market were heard in committee during week 2 of Florida's 2012 legislative session. The reforms are directed at both Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund, characterized in House debate as Florida's "two sick children."