366580, 19ER06-1 - Florida Administrative Rules, Law, Code, Register

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Notice: 366580

Notice of Emergency Rule

Department:

STATE BOARD OF ADMINISTRATION

Overview

RULE:

19ER06-1

Reimbursement Contract

SUMMARY:

Rule 19ER06-1, is titled “Reimbursement Contract”. Paragraph (12) of this rule incorporates the reimbursement contract for the 2006-2007 contract year that participating insurers must sign and return to the FHCF by June 1, 2006.	Since the reimbursement contract must be amended to reflect those legislative changes, paragraph (12) of this rule has been amended to reflect that the reimbursement contract now includes three addenda. The changes made to the contract are summarized as follows: 
Addendum No. 1: The definition of “losses” in Article VI(4) is amended to clarify that losses covered by the FHCF do not include “rent or rental income.” The language in Article X, which quoted language in Section 215.555(4)(d)2., F.S., which was stricken in CS/CS SB 1980 was removed and the references to the rapid cash build-up in Articles V(16) and Article X were amended to reflect the amendments to Section 215.555(5)(b), F.S. which requires the inclusion of a 25% rapid cash build-up factor in the reimbursement premium formula.
Addendum No. 2:   This Addendum, which addresses a new option created in CS/CS for SB 1980 which allows limited apportionment companies to obtain up to $10 million dollars in additional FHCF coverage, must be completed by all limited apportionment companies and allows them to select from $0 up to $10 million in additional coverage. The Addendum also provides information on the cost and payment timeline for such additional coverage and clarifies that other provisions of the Reimbursement Contract, to which the Addendum is attached are applicable to the Addendum.
Addendum No. 3.: This Addendum addresses the changes to Section 215.555(5), F.S. which created a procedure by which Citizens Property Insurance Corporation (“Citizens”) could obtain FHCF coverage for policies when Citizen’s takes over policies from a liquidated insurer. The law allows Citizens to choose whether to include such policies under its Reimbursement Contract with the FHCF or to accept an assignment of the liquidated insurer’s Reimbursement Contract with the FHCF.   Addendum No. 3. provides the information on these new options, provides the form on which to make the option and provides the requirements, procedures and timeframes for selecting the option with respect to each transfer of policies from a liquidated insurer to Citizens.

THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS:

Jack E. Nicholson, Senior FHCF Officer, Florida Hurricane Catastrophe Fund, State Board of Administration of Florida

PRINT PUBLISH DATE:

5/26/2006 Vol. 32/21

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=19ER06-1&PDate=5/26/2006&Section=4

REFERENCE MATERIALS:

No reference(s).

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