19ER11-2: 19-8.010, Reimbursement Contract
SPECIFIC REASONS FOR FINDING AN IMMEDIATE DANGER TO THE PUBLIC HEALTH, SAFETY OR WELFARE: Emergency Rule 19ER11-2 (19-8.010), Reimbursement Contract, implements statutory changes made by CS/CS/CS/SB 408. Specifically, this legislation changes the definition of “losses” which are reimbursable by the Florida Hurricane Catastrophe Fund (FHCF) and makes these changes effective for the 2011/2012 Contract Year which began on June 1, 2011. Therefore, time is of the essence in getting the incorporated forms amended and in effect as soon as possible.
REASON FOR CONCLUDING THAT THE PROCEDURE IS FAIR UNDER THE CIRCUMSTANCES: Hurricane Season began on June 1st and using the emergency rule process is the only way to implement the new legislation immediately. The emergency rule was authorized at a published meeting open to the public and is posted to the FHCF’s website.
SUMMARY: The legislation changes the definition of “losses”, effective for the 2011/2012 Contract Year. Losses now covered by the FHCF are “all incurred losses under covered policies….” New language specifically includes “amounts paid as fees on behalf of or inuring to the benefit of a policyholder.” New language specifically excludes losses under liability coverages, property losses that are proximately caused by any peril other than a covered event, amounts paid as the result of a voluntary expansion of coverage by the insurer, amounts paid to reimburse a policyholder for condominium association or homeowners’ association loss assessments, bad faith awards, punitive damage awards, other court-imposed fines, sanctions, or penalties, amounts in excess of the coverage limits under the covered policy and allocated or unallocated loss adjustment expenses.
THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS: Jack E. Nicholson, Chief Operating Officer, Florida Hurricane Catastrophe Fund, State Board of Administration of Florida
THE FULL TEXT OF THE EMERGENCY RULE IS:
19ER11-2 (19-8.010) Reimbursement Contract.
(1) through (16) No change.
(17) The reimbursement contract for the 2011-2012 contract year, including all Amendments and Addenda, required by Section 215.555(4), F.S., which is called Form FHCF-2011K-“Reimbursement Contract” or “Contract” between (name of insurer) (the “Company”)/NAIC #( ) and The State Board of Administration of the State of Florida (“SBA”) which administers the Florida Hurricane Catastrophe Fund (“FHCF”), rev. 06/11 01/11, is hereby adopted and incorporated by reference into this rule. This contract is effective from June 1, 2011 through May 31, 2012.
(18) No change.
Rulemaking Authority 215.555(3) FS. Law Implemented 215.555 FS. History–New 5-31-94, Amended 8-29-95, 5-19-96, 6-19-97, 5-28-98, 5-17-99, 9-13-99, 6-19-00, 6-3-01, 6-2-02, 11-12-02, 5-13-03, 5-19-04, 8-29-04, 5-29-05, 11-13-05, 5-10-06, 9-5-06, 5-8-07, 8-13-07, 6-8-08, 9-2-08, 3-30-09, 8-23-09, 3-29-10, 8-8-10, 12-12-10, 6-17-11.