FHCF Pursues Changes to Records Retention Requirements
The Florida Hurricane Catastrophe Fund is scheduled to hold a hearing today on proposed rules that would incorporate changes to its data reporting and retention requirements. The various forms insurers must use to report losses to the FHCF and the information they must maintain for audits are set forth in, or incorporated into, administrative rules. Although the FHCF is proposing a number of changes, those relating to its claims reporting and records retention have attacted the most attention from the industry. For example, insurers have expressed concern that they do not have requested information relating to amounts policyholders obligated themselves to pay their representatives. The FHCF has attempted to reduce the reporting burden by requiring insurers to track the information only if it is available to the insurer.
The path for the rule following today’s hearing is unclear in light of the Governor’s executive order suspending rulemaking. The Florida Hurricane Catastrophe Fund, housed within the State Board of Administration, is not under the sole direction of the Governor. However, the Governor is one of three trustees responsible for FHCF rulemaking. In light of the renewed scruntiny of agency rules, the Governor and other SBA trustees therefore might independently evaluate whether the proposed changes meet their expectations for streamlining regulations and reducing regulatory costs.