Florida Administrative Code › 19 - STATE BOARD OF ADMINISTRATION › 19 - Departmental › Chapter 19-8 - ADMINISTRATION OF THE FLORIDA HURRICANE CATASTROPHE FUND › Section 19-8.012 - Procedures to Determine Ineligibility for Participation in the Florida Hurricane Catastrophe Fund and to Determine Exemption from Participation in the Florida Hurricane Catastrophe Fund due to Limited Exposure

Current through Reg. 50, No. 138; July 16, 2024
(1) Purpose. The purpose of this rule is to
				establish procedures to determine ineligibility for participation in the
				Florida Hurricane Catastrophe Fund ("the Fund") and to establish procedures to
				determine whether an insurer may be exempted from subsections (4) and (5) of
				Section  215.555, F.S., because it has
				less than $10 million in aggregate exposure for covered policies.
(2) Procedures to Determine Ineligibility for
				Participation in the Fund.
(a) An insurer
				must apply for ineligibility from participation in the Fund if it has
				surrendered its certificate of authority to write insurance in Florida. To
				apply, the insurer shall submit a written request for ineligibility stating
				that it will have no covered policies, as that term is defined in Section
				 215.555(2)(c),
				F.S., after May 31 of the year for which the ineligibility is sought and
				provide a copy of the Office of Insurance Regulation Order, if any, revoking
				the insurer's authority to write insurance in Florida. The request shall be
				sent to the Fund's Administrator, Paragon Strategic Solutions Inc., at 8200
				Tower, 5600 West 83rd Street, Suite 1100, Minneapolis, MN 55437.
(b) An insurer which is not surrendering its
				certificate to write insurance in Florida must apply for ineligibility from
				participation in the Fund if it no longer has any covered policies in force, as
				that term is defined in Section
				 215.555(2)(c),
				F.S. To apply, the insurer shall submit a written request for a determination
				regarding its ineligibility for participation. The request shall be sent, no
				later than September 1 of the current contract year, to the Fund's
				Administrator, Paragon Strategic Solutions Inc., at 8200 Tower, 5600 West 83rd
				Street, Suite 1100, Minneapolis, MN 55437, and shall contain the following
				information:
1. A detailed explanation of any
				premium appearing on the insurer's Florida Exhibit of Premiums and Losses of
				the National Association of Insurance Commissioners annual statement for lines
				of business which may contain covered policies. These lines are: Fire, Allied
				Lines, Homeowners Multiple Peril, Commercial Multiple Peril (non-liability
				portion), Inland Marine, Farmowners Multiple Peril.
2. A copy of the insurer's Exhibit of
				Premiums and Losses of the annual statement, required by Section
				 624.424, F.S., and any rules
				adopted thereunder, for the State of Florida for the applicable year.
3. Form FHCF-E1, "Statement related to
				Covered Policies as defined in Section
				 215.555(2)(c),
				F.S., " rev. 05/08, signed by two executive officers attesting to the fact that
				the insurer writes no covered policies. Form FHCF-E1 is hereby adopted and
				incorporated by reference into this rule. The form may be obtained from the
				Fund's Administrator at the address stated in this
				paragraph.
(c) The State
				Board of Administration of Florida ("Board") shall review the information
				received pursuant to paragraph (a) or (b), above.
1. If the Board determines that the insurer
				writes covered policies, as defined in Section
				 215.555(2)(c),
				F.S., and in Article V of the reimbursement contract, as adopted and
				incorporated by reference in Rule
				 19-8.010, F.A.C., and must
				therefore participate in the Fund as required by Section
				 215.555(4)(a),
				F.S., the Board will notify the insurer that its request has been denied. All
				insurers determined to be participants in the Fund will be required to enter
				into a reimbursement contract with the Board and will be subject to all premium
				payments and interest thereon, as well as fees for inadequate exposure
				data.
2. If the Board determines
				that the insurer does not write covered policies, as defined in Section
				 215.555(2)(c),
				F.S., and in Article V of the reimbursement contract, as adopted and
				incorporated by reference in Rule
				 19-8.010, F.A.C., the Board will
				notify the insurer that its request has been approved. This ineligibility
				continues until the insurer once again begins writing covered policies. The
				insurer must immediately notify the Board if it begins writing covered
				policies.
(d) Any Company
				granted ineligibility status which fails to execute and return the
				reimbursement contract to the Fund within thirty days of writing its first
				covered policy following the grant of ineligibility status shall not be
				eligible for reimbursement for any covered losses from a covered event
				occurring prior to the receipt by the Fund of the executed reimbursement
				contract.