Limited Apportionment Company Request Deadline Approaches
By: Travis Miller
The deadline for requesting limited apportionment status for 2009 is March 31, 2009. Any insurers with $25 million or less in surplus and writing at least 25% of its countrywide property insurance business in Florida may submit a petition for limited apportionment status to the Florida Office of Insurance Regulation. In recent years, limited apportionment companies have benefitted from the opportunity to buy $10 million of low-layer coverage from the Florida Hurricane Catastrophe Fund. As the 2009 legislative session approaches, it is unclear whether that opportunity will be extended for the 2009-10 Florida Hurricane Catastrophe Fund contract year. Because the petition deadline passes before this will be known, companies interested in the low-layer FHCF coverage should consider submitting their petitions by the March 31 deadline.
The benefits of limited apportionment status aside from the low-layer FHCF coverage have been reduced in recent years. However, limited apportionment companies still are able to spread their Citizens Property Insurance Corporation regular assessment payments over a year rather than paying the entire amount up front, and limited apportionment companies may receive advances from the Florida Hurricane Catastrophe Fund if its resources allow.
For more information about limited apportionment status, please feel free to contact Travis Miller.