Florida's residential insurance law SB 408 that took effect in May should bring much needed relief to homeowners who fear their property and casualty company might fail and to auditors who must offer opinions as to whether those insurers are financially fit to stay in business.
Rules that allowed insurers to operate with the thinnest of financial cushions before toppling under the weight of oversized and unpredictable claims have changed for the better. So have the requirements for all types of claims, in particular the sinkhole claims that have done more than hurricanes to afflict property and casualty companies.
The law raises the minimum surplus requirement to $15 million from the previous $5 million for newly organized insurers. This should help eliminate many “going concerns” issues that auditors must address each year. With more money in the bank, fresh-faced Florida insurers can better weather unexpected calamities.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
