Florida SB 1448: Public Records and Meetings/Interstate Teacher Mobility Compact Commission

Bill Text

1448 
Florida Hurricane Catastrophe Fund 
2026-01-08T08:09:49Z 
Revising the definition of the term “retention”; requiring reimbursement contracts to contain a promise by the State Board of Administration to reimburse the insurer for applicable loss adjustment expenses; requiring that, for contracts and rates effective on or after a specified date, the loss adjustment expense included be a specified amount, etc. 
Original Filed Version 
2026 
S 
2026-07-01T00:00:00Z 
GB 
General Bill 
__ 

 Florida Senate - 2026 SB 1448 

 By Senator DiCeglie 

 18-00809-26 20261448__ 
 1 A bill to be entitled 
 2 An act relating to the Florida Hurricane Catastrophe 
 3 Fund; amending s. 215.555, F.S.; revising the 
 4 definition of the term “retention”; requiring 
 5 reimbursement contracts to contain a promise by the 
 6 State Board of Administration to reimburse the insurer 
 7 for applicable loss adjustment expenses; requiring 
 8 that, for contracts and rates effective on or after a 
 9 specified date, the loss adjustment expense included 
 10 be a specified amount; requiring that the hurricane 
 11 loss portion of the formula for determining the 
 12 actuarially indicated premium to be paid to the fund 
 13 be determined in a specified manner; authorizing, 
 14 rather than requiring, such formula to provide for a 
 15 cash build-up factor; deleting obsolete provisions; 
 16 requiring the cash build-up factor to be zero in a 
 17 specified contract year; providing an effective date. 
 18 
 19 Be It Enacted by the Legislature of the State of Florida: 
 20 
 21 Section 1. Paragraph (e) of subsection (2), paragraph (b) 
 22 of subsection (4), and paragraph (b) of subsection (5) of 
 23 section 215.555, Florida Statutes, are amended to read: 
 24 215.555 Florida Hurricane Catastrophe Fund.— 
 25 (2) DEFINITIONS.—As used in this section: 
 26 (e) “Retention” means the amount of losses below which an 
 27 insurer is not entitled to reimbursement from the fund. An 
 28 insurer’s retention shall be calculated as follows: 
 29 1. The board shall calculate and report to each insurer the 
 30 retention multiples for that year. For the contract year 
 31 beginning June 1, 2026 2005, the retention multiple must shall 
 32 be equal to $4.5 billion divided by the total estimated 
 33 reimbursement premium for the contract year; for subsequent 
 34 years, the retention multiple shall be equal to $4.5 billion, 
 35 adjusted based upon the reported exposure for the contract year 
 36 occurring 2 years before the particular contract year to reflect 
 37 the percentage growth in exposure to the fund for covered 
 38 policies since 2004, divided by the total estimated 
 39 reimbursement premium for the contract year. Total reimbursement 
 40 premium for purposes of the calculation under this subparagraph 
 41 shall be estimated using the assumption that all insurers have 
 42 selected the 90-percent coverage level. 
 43 2. The retention multiple as determined under subparagraph 
 44 1. shall be adjusted to reflect the coverage level elected by 
 45 the insurer. For insurers electing the 90-percent coverage 
 46 level, the adjusted retention multiple is 100 percent of the 
 47 amount determined under subparagraph 1. For insurers electing 
 48 the 75-percent coverage level, the retention multiple is 120 
 49 percent of the amount determined under subparagraph 1. For 
 50 insurers electing the 45-percent coverage level, the adjusted 
 51 retention multiple is 200 percent of the amount determined under 
 52 subparagraph 1. 
 53 3. An insurer shall determine its provisional retention by 
 54 multiplying its provisional reimbursement premium by the 
 55 applicable adjusted retention multiple and shall determine its 
 56 actual retention by multiplying its actual reimbursement premium 
 57 by the applicable adjusted retention multiple. 
 58 4. For insurers who experience multiple covered events 
 59 causing loss during the contract year, beginning June 1, 2005, 
 60 each insurer’s full retention shall be applied to each of the 
 61 covered events causing the two largest losses for that insurer. 
 62 For each other covered event resulting in losses, the insurer’s 
 63 retention shall be reduced to one-third of the full retention. 
 64 The reimbursement contract shall provide for the reimbursement 
 65 of losses for each covered event based on the full retention 
 66 with adjustments made to reflect the reduced retentions on or 
 67 after January 1 of the contract year provided the insurer 
 68 reports its losses as specified in the reimbursement contract. 
 69 (4) REIMBURSEMENT CONTRACTS.— 
 70 (b)1. The contract shall contain a promise by the board to 
 71 reimburse the insurer for 45 percent, 75 percent, or 90 percent 
 72 of its losses and applicable loss adjustment expenses from each 
 73 covered event in excess of the insurer’s retention, plus 5 
 74 percent of the reimbursed losses to cover loss adjustment 
 75 expenses. For contracts and ra