The Florida Insurance Council has sounded a warning to state lawmakers about the Florida Hurricane Catastrophe Fund's condition after officials said it would be unable to pay all losses if a catastrophic storm hit.
At a meeting last week the FHCF advisory board acknowledged the fund's reimbursement capacity would come up short by between $10 billion and $15 billion in the event of a maximum loss year.
The fund in an effort to avoid such a possibility has made an arrangement with Warren Buffett's Berkshire Hathaway in which the fund paid for a guarantee that Berkshire would buy $4 billion in bonds if the fund's losses exceeded $25 billion.
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