Florida Hurricane Catastrophe Fund Certain Emergency Assessments Terminated

Page 1 of 2 INFORMATIONAL MEMORANDUM OIR-14-04M ISSUED July 21, 2014 Florida Office of Insurance Regulation Kevin M. McCarty, Commissioner INFORMATIONAL MEMORANDUM To All Property and Casualty Insurers, Surplus Lines Insurers, and Surplus Lines Agents in the State of Florida The purpose of this memorandum is to notify all Property and Casualty Insurers, Surplus Lines Insurers, and Surplus Lines Agents in the State of Florida subject to the Florida Hurricane Catastrophe Fund (FHCF) Emergency Assessments of the termination of certain emergency assessments enacted January 1, 2007. REFERENCE DOCUMENTS - Copies are available at: http://www.floir.com/Office/HurricaneSeason/FHCF.aspx • Order issued by the Office of Insurance Regulation (Office) to all Insurers that write property and casualty lines of business in this state, Case No. 154708-14 • Order issued by the Office to the Florida Surplus Lines Service Office (FSLSO) and all entities subject to Part VIII of Chapter 626, Florida Statutes, Case No. 156729-14 Pursuant to the Orders, for all policies issued or renewed on or after January 1, 2015, the emergency assessment levied in the Orders dated April 27, 2010 in Case No. 108945-10 and in Case No. 109022-10 is terminated. It is important to note that the emergency assessment will continue to apply to the direct written premium on all “related” transactions at the applicable percentage described below. “Related” transactions to a policy subject to the emergency assessment includes, but is not limited to, endorsements, policy cancellations, and audit premiums related to policies issued or renewed prior to January 1, 2015 ortant to note that the emergency assessment will continue to apply to the direct written premium on all “related” transactions at the applicable percentage described below. “Related” transactions to a policy subject to the emergency assessment includes, but is not limited to, endorsements, policy cancellations, and audit premiums related to policies issued or renewed prior to January 1, 2015. Emergency Assessments will continue as follows: (A) For policies issued or renewed on or after January 1, 2015, the Emergency Assessment is 0% (B) For policies issued or renewed January 1, 2011 through December 31, 2014, the Emergency Assessment is 1.3% (C) For policies issued or renewed January 1, 2007 through December 31, 2010, the Emergency Assessment is 1% (D) For policies issued or renewed prior to January 1, 2007, the Emergency Assessment is 0% Page 2 of 2 REPORTING REQUIREMENTS All Insurers, as defined in Order No. 154708-14 , shall continue to report direct written premium related to FHCF emergency assessments through the Office’s General Emergency Assessment Reporting (GEAR) quarterly data collection The GEAR reporting requirement will continue to remain in effect until direct written premium information for the 4th quarter of 2016 (due March 1, 2017) has been reported. All surplus lines agents and insureds procuring coverage and filing under 626.938, F.S. with emergency assessments for related transactions to policies issued or renewed prior to January 1, 2015, shall continue to report and remit as required by the FSLSO. The elimination of the FHCF emergency assessment has no effect on the collection or reporting for the Citizens Emergency Assessment that is also reported through the GEAR quarterly data collection filing under 626.938, F.S. with emergency assessments for related transactions to policies issued or renewed prior to January 1, 2015, shall continue to report and remit as required by the FSLSO. The elimination of the FHCF emergency assessment has no effect on the collection or reporting for the Citizens Emergency Assessment that is also reported through the GEAR quarterly data collection. Additional information will be available on the Office’s website at: http://www.floir.com/Office/HurricaneSeason/FHCF.aspx For information regarding this memorandum, please contact the Office of Insurance Regulation at (850)413-3147.