Limited Apportionment Form Available
An insurer with $25 million or less in surplus and writing at least 25% of its countrywide property insurance premiums in Florida may file a petition to become a “limited apportionment company.” By law, an insurer must submit its request to be a limited apportionment company within the first 90 days of each calendar year. A new filing must be made each year.
The form by which insurers may request limited apportionment status in 2010 is available for review and completion. The form must be submitted to the Office of Insurance Regulation such that the OIR receives it no later than March 31, 2010.
Florida law contains several benefits for limited apportionment companies. A limited apportionment company may elect to pay a regular assessment from Citizens Property Insurance Corporation’s High Risk Account over a 12-month period as it recoups the assessment rather than in an upfront payment like other insurers. In addition, limited apportionment companies in recent years have been able to buy certain low-layer coverage from the Florida Hurricane Catastrophe Fund.