News & Updates

assessment

Legislature Develops Solution for Long Term Care Insolvencies

Legislature Develops Solution for Long Term Care Insolvencies

The House and Senate based a bill designed to more equitable handle insolvencies associated with long term care insurers. After passing both chambers without opposition, HB 673 goes to Governor Ron DeSantis for action. The bill largely follows the NAIC Model Act related funding long-term care insolvencies. In general, these insolvencies will be divided evenly […]

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FHCF Provides Early Look at 2018 Capacity

FHCF Provides Early Look at 2018 Capacity

The Florida Hurricane Catastrophe Fund continues to project that its single-season limit of $17 billion is available for reimbursements this year, some of which will be eroded by Hurricane Irma losses.  According to current estimates, Irma reimbursements could range from $3 billion to $6 billion, with $5.1 billion being the current point estimate. As the 2017 […]

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Department of Revenue Issues TIP on FIGA Assessments

Department of Revenue Issues TIP on FIGA Assessments

The Florida Department of Revenue has issued TIP #16B8-02 advising of a change in Florida’s premium tax laws effective July 1, 2016.  The TIP specifies that assessments levied by the Florida Insurance Guaranty Association will no longer be subject to the insurance premium tax.  The TIP reflects changes to section 631.914, Florida Statutes, that were […]

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July Marks Effective Date for Statutory Changes

July Marks Effective Date for Statutory Changes

Bills passed by the Florida legislature specify when their provisions take effect, either upon the bills’ becoming law or upon a specific date.  For insurance-related legislation, the legislature often establishes July 1 as the effective date.  This is the case with several bills passed during 2015.  Insurers therefore should consider the impact of 2015 legislation […]

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Department of Revenue Issues Guidance on FIGA Recoupments

Department of Revenue Issues Guidance on FIGA Recoupments

The Florida Department of Revenue has issued guidance to insurers relating to their recoupments of Florida Insurance Guaranty Association (FIGA) assessments.  Due to a law change passed in the 2015 regular session, recoupments of both regular and emergency FIGA assessments will not be subject to the insurance premium tax.  The Department of Revenue’s guidance notes, […]

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New Law Clarifies FIGA Recoupment Receivables are Admitted Assets

New Law Clarifies FIGA Recoupment Receivables are Admitted Assets

The legislature passed HB 189 in the 2015 regular session relating to the admissibility of receivables arising from the recoupment of Florida Insurance Guaranty Association (FIGA) assessments.  Upon now being approved by the Governor, the new law takes effect July 1, 2015. The new law relates to FIGA assessments that are paid by an insurer before being […]

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Storm Free Years and Stronger Private Market Improve Citizens’ Position

Storm Free Years and Stronger Private Market Improve Citizens’ Position

After the devastating series of storms in 2004 and 2005, Florida has enjoyed a run of essentially storm-free years.  This has led to improved conditions in the private insurance market, and consequently to reductions in the policy count of Citizens Property Insurance Corporation.  Citizens therefore expects that it in 2015 it will be able to […]

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FHCF Initial Event Fully Funded

FHCF Initial Event Fully Funded

The Florida Hurricane Catastrophe Fund (FHCF) recently announced that it anticipates being able to fully fund its $17 billion in initial season obligations and being able to support a large portion of a subsequent season’s obligations. Under its most recent projections, the FHCF would fall about $5 billion short of providing another $17 billion in […]

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Citizens to End Assessment Early

Citizens to End Assessment Early

Citizens Property Insurance Corporation announced that a surcharge on Florida homeowners insurance premiums will end about two years earlier than originally planned.  The assessment has been in place to pay off bonds from the 2005 hurricane season. The surcharge will end as of July 1, 2015.   Inital projections would have extended  the surcharge until June 30, 2017.  Citizens is able to take this […]

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FHCF Assessment to End Early

FHCF Assessment to End Early

The assessment imposed by the Florida Hurricane Catastrophe Fund (FHCF) will end 18 months earlier than previously projected.  Governor Scott and the Cabinet voted to terminate the assessment as of January 1, 2015 rather than the scheduled July 1, 2016, end date. The assessment currently is 1.3% of premiums.  Insurers add the assessment amount to […]

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