User:Mgreason/Sandbox9

The Florida Hurricane Catastrophe Fund (FHCF) is a tax-exempt trust fund created by the Florida Legislature in 1993 (F.S. 215.555). Following catastrophic Hurricane Andrew, numerous insurance companies were insolvent, or their financial stability could not withstand another devastating event without time to rebuild their reserves. The state recognized the need to protect those insured from companies that were unwilling or unable to pay valid claims in full. An orderly and viable insurance market was essential to ensure that real estate transactions continue. The FHCF is administered by the State Board of Administration of Florida and provides for partial reimbursement of catastrophic hurricane losses to residential property insurers. The fund was originally intended to be self-supporting. All Florida Residential property insurance companies themselves pay actuarially determined premiums. However, in 2022 the Florida Legislature provided $2 billion in reinsurance capacity entitled, Reinsurance to Assist Policyholders. The money is sourced from general revenue, so taxpayers will foot the bill for claims. In special circumstances, revenue can also be generated by bonds funded by emergency assessments on insurance premiums.