A plan for a state storm fund to buy $1.5 billion of private reinsurance did not reach the Florida Cabinet on Tues. and may be running out of time before hurricane season, reports The Palm Beach Post.
The Florida Hurricane Catastrophe Fund acts as low-cost reinsurance that insurance companies buy to help them pay claims after storms. Back in January, Florida Hurricane Catastrophe Fund COO Jack Nicholson told the Post the $1.5 billion deal required approval of Cabinet members and would raise consumer bill slightly—less than 1%—but could help lower the risk of assessments to state insurance customers if the fund had to be bailed out after a big catastrophe.
Nicholson stopped short of saying the proposal is dead, but noted it may be too late to arrange the coverage in time for hurricane season June 1, says the Post.
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