Florida HB 1053: Highway Safety and Motor Vehicles

Bill Text

HB 1053 2026

CODING: Words stricken are deletions; words underlined are additions.
hb1053-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

A bill to be entitled 1
An act relating to insurers; reenacting and amending 2
s. 215.555, F.S.; revising the definition of the term 3
"retention" for the purpose of reimbursement from the 4
Florida Hurricane Catastrophe Fund; revising the 5
reimbursement amount promised by the board in the 6
contract with property insurers; revising the minimum 7
of loss adjustment expenses; providing the hurricane 8
loss portion of the formula that determines the 9
actuarially indicated premiums to be paid to the fund; 10
authorizing, rather than requiring, such formula to 11
provide for cash build-up factors; removing obsolete 12
language; revising the cash build-up factor for a 13
specified contract year; amending s. 627.944, F.S.; 14
providing that risk retention groups registered to do 15
business in this state are deemed insurance companies 16
authorized to do business in this state; reenacting s. 17
215.5551(3)(b), F.S., relating to Reinsurance to 18
Assist Policyholders program, to incorporate the 19
amendments made to s. 215.555, F.S., in a reference 20
thereto; providing an effective date. 21
22
Be It Enacted by the Legislature of the State of Florida: 23
24
Section 1. Paragraph (e) of subsection (2), paragraph (b) 25

HB 1053 2026

CODING: Words stricken are deletions; words underlined are additions.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

of subsection (4), and paragraph (b) of subsection (5) of 26
section 215.555, Florida Statutes, are amended, and paragraphs 27
(c), (d), and (e) of subsection (4), paragraph (c) of subsection 28
(5), and paragraphs (a) and (d) of subsection (16) of that 29
section are reenacted, to read: 30
215.555 Florida Hurricane Catastrophe Fund.— 31
(2) DEFINITIONS.—As used in this section: 32
(e) "Retention" means the amount of losses below which an 33
insurer is not entitled to reimbursement from the fund. An 34
insurer's retention shall be calculated as follows: 35
1. The board shall calculate and report to each insurer 36
the retention multiples for that year. For the contract year 37
beginning June 1, 2026 2005, the retention multiple must shall 38
be equal to $4.5 billion divided by the total estimated 39
reimbursement premium for the contract year; for subsequent 40
years, the retention multiple shall be equal to $4.5 billion, 41
adjusted based upon the reported exposure for the contract year 42
occurring 2 years before the particular contract year to reflect 43
the percentage growth in exposure to the fund for covered 44
policies since 2004, divided by the total estimated 45
reimbursement premium for the contract year. Total reimbursement 46
premium for purposes of the calculation under this subparagraph 47
shall be estimated using the assumption that all insurers have 48
selected the 90-percent coverage level. 49
2. The retention multiple as determined under subparagraph 50

HB 1053 2026

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1. shall be adjusted to reflect the coverage level elected by 51
the insurer. For insurers electing the 90-percent coverage 52
level, the adjusted retention multiple is 100 percent of the 53
amount determined under subparagraph 1. For insurers electing 54
the 75-percent coverage level, the retention multiple is 120 55
percent of the amount determined under subparagraph 1. For 56
insurers electing the 45-percent coverage level, the adjusted 57
retention multiple is 200 percent of the amount determined under 58
subparagraph 1. 59
3. An insurer shall determine its provisional retention by 60
multiplying its provisional reimbursement premium by the 61
applicable adjusted retention multiple and shall determine its 62
actual retention by multiplying its actual reimbursement premium 63
by the applicable adjusted retention multiple. 64
4. For insurers who experience multiple covered events 65
causing loss during the contract year, beginning June 1, 2005, 66
each insurer's full retention shall be applied to each of the 67
covered events causing the two largest losses for that insurer. 68
For each other covered event resulting in losses, the insurer's 69
retention shall be reduced to one-third of the full retention. 70
The reimbursement contract shall provide for the reimbursement 71
of losses for each covered event based on the full retention 72
with adjustments made to reflect the reduced retentions on or 73
after January 1 of the contract year provided the insurer 74
reports its losses as specified in the reimbursement contract. 75

HB 1053 2026

CODING: Words stricken are deletions; words underlined are additions.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

(4) REIMBURSEMENT CONTRACTS.— 76
(b)1. The contract sh