The Senate Budget Committee today approved a package reducing Citizens Property's regular assessments to 2 percent and reducing $2 billion in Cat Fund capacity and increasing the most common insurer co-pay from 10 percent to 20 percent.
The Citizens Property Insurance Corporation package was adopted as it was filed and is the base bill (CS/SB 1346). The Cat Fund proposal, (which had been SB 1372) is now scaled back significantly. The new plan is an amendment from Senate Budget Chair J.D. Alexander, R-Lake Wales, sponsor of the original Cat Fund proposal, to the Citizens assessment bill.
The original Cat Fund proposal reduced $5 billion from the $17 billion mandatory program, bringing it down to $12 billion. The amendment reduces the fund to $16 billion in 2013 and $15 billion in 2014. Current law is retained on the retention and the rapid cash buildup factor.
The 90 percent purchase option is reduced to 80 percent over two years, not to 75 percent.
The bill now goes to the full Senate. It would have to be adopted by the full House. Rep. Bill Hager, R-Boca Raton, House sponsor of the original Cat Fund bill, supports the revised plan.
Alexander, Hager and Jack Nicholson, Cat Fund Chief Operating Officer, called the plan the first step and said more substantial restructuring of the program should be pursed next year.
* This information was released by the Florida Insurance Council (FIC). As a member of FIC, we have received permission to publish news information posted on their website.