STORAGE NAME: h5013.BUC
DATE: 4/3/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 5013 PCB BUC 25-07
TITLE: State-funded Property Reinsurance Programs
SPONSOR(S): McClure
COMPANION BILL: None
LINKED BILLS: None
RELATED BILLS: None
Committee References
Orig. Comm.: Budget
27 Y, 0 N
SUMMARY
Effect of the Bill:
The bill conforms current law to the proposed House of Representatives’ Fiscal Year 2025-2026 General
Appropriations Act (GAA). The bill reduces, from $2 billion to $900 million, the General Revenue (GR) Fund
transfers authorized under the Reinsurance to Assist Policyholders (RAP) Program to reimburse eligible insurers
for covered losses. The bill repeals the Florida Optional Reinsurance Assistance (FORA) Program, including $1
billion of authorized General Revenue Fund transfers that are available under the program to reimburse eligible
insurers for covered losses.
Fiscal or Economic Impact:
The bill increases the amount of unallocated General Revenue funding by $2.1 billion.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill reduces, from $2 billion to $900 million, the General Revenue (GR) Fund transfers authorized under the
Reinsurance to Assist Policyholders (RAP) Program to reimburse eligible insurers for covered losses. The bill
repeals the Florida Optional Reinsurance Assistance (FORA) Program, including $1 billion of authorized General
Revenue Fund transfers that are available under the program to reimburse eligible insurers for covered losses.
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill increases the amount of unallocated General Revenue funding by $2.1 billion. Since the Reinsurance to
Assist Policyholders Program and the Florida Optional Reinsurance Assistance Program were created in 2022, the
General Revenue Fund Financial Outlook statement has reflected a reserve for General Revenue Fund transfers
authorized under the two programs.
1 The bill reduces the amounts held in reserve, thereby increasing available
General Revenue. Based on data provided by the State Board of Administration, there will be no impact on eligible
reimbursements.
1
Office of Economic and Demographic Research, https://edr.state.fl.us/Content/revenues/outlook-statements/general-
revenue/250314_GRoutl.pdf (last visited Mar. 24, 2025). JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Reinsurance to Assist Policyholders Program
During Special Session 2022D, the Florida Legislature created the Reinsurance to Assist Policyholders (RAP)
Program
2 to authorize $2 billion of reinsurance coverage to qualified property insurers at no cost to the insurers.
The legislation required participating insurers to reduce rates to policyholders as a result of this reinsurance
coverage.
Specifically the legislation authorized transfers of up to $2 billion from the state’s GR Fund for the RAP Program to
be administered by the State Board of Administration (SBA). The funds may only be transferred to the SBA if the
RAP Program must reimburse qualified insurers because of hurricane loss. The legislation also allowed for
transfers of up to $5 million from the GR Fund to the SBA for administration of the RAP program and post-event
examinations. Any funds not used for the program must be returned to the GR Fund by July 1, 2029.
A total of 146 companies were eligible for RAP coverage. For the 2022-2023 contract year, 69 companies were
required to participate, and 77 companies were required to defer coverage to the 2023-2024 contract year.
3 There
have been three covered events under the RAP Program: Hurricane Ian (Contract Year 2022), Hurricane Nicole
(Contract Year 2022), and Hurricane Idalia (Contract Year 2023).
Following Hurricane Ian, $800 million was transferred from the GR Fund to the SBA for the RAP Program. As of
December 31, 2024, a total of 48 RAP insurers have been reimbursed a total of $740.6 million for losses from
Hurricane Ian. Of those 48 insurers, 39 have received their maximum RAP payout. The SBA expects 50 companies
to receive their maximum RAP payout which is expected not to exceed $860 million.
4 Insurers must request
reimbursements no later than June 1, 2028, unless commuted earlier.
Following Hurricane Nicole, no transfers were requested from the GR Fund to the SBA. Actuarial estimates based
on losses reported by RAP insurers indicate that RAP reimbursements will not be necessary for this storm.
5
Following Hurricane Idalia, $15 million was transferred from the GR Fund to the SBA for the RAP Program. Based
on initial actuarial estimates, the SBA requested and received $15 million from the GR fund for covered losses. As
of December 31, 2024, two RAP insurers have been reimbursed a total of $5.5 million.
6 The SBA expects four
companies to receive reimbursements. Insurers must request reimbursements no later than June 1, 2028, unless
commuted earlier.
Florida Optional Reinsurance Program
During Special Session 2022A, the Florida Legislature created the Florida Optional Reinsurance (FORA) Program
7
to provide optional layers of reinsurance at near market rates for the 2023 hurricane season.
The legislation authorized transfers of up to $1 billion from the state’s GR Fund for the FORA Program to be
administered by the SBA. The funds may only be transferred to the SBA if the FORA Program must reimburse
participating insurers for losses associated with a covered event. The bill also allows for a transfer of up to $6
million from GR to the SBA for administration of the program and post-event examinations with $2 million
transferred up front. Any funds not used for the program must be returned to the GR Fund by July 1, 2026.
2
Chapter 2022-268, Laws of Fla.
3
Florida State Board of Administration, https://www.sbafla.com/media/fweluqgk/20250131-rap-report.pdf, p. 2 (last visited
Mar. 24, 2025).
4
Id.
5
Id at p. 3.
6
Id at pp. 3-4.
7
Chapter 2022-271, Laws of Fla. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Five insurers elected coverage under the FORA Program.
8 Hurricane Idalia is the only covered event for the 2023
hurricane season. As of December 31, 2024, no transfers have been made from the GR Fund to the SBA for the
FORA Program. Based on minimal projected losses due to this storm, all five participants have commuted their
FORA contracts.
9 There are no further loss reimbursement liabilities under the FORA Program.
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2022A SB 2-A Leek & Rommel Boyd Effective 12/16/2022 except
as otherwise expressly
provided
2022D CS/SB 2-D Trumbull Boyd Effective 05/26/2022 except
as otherwise provided
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Orig. Comm.: Budget Committee 27 Y, 0 N 4/2/2025 Pridgeon Helpling
8
Florida State Board of Administration, https://www.sbafla.com/media/ncdbtoih/2023-fora-layer-selections-20230705.pdf
(last visited Mar. 24, 2025).
9
Florida State Board of Administration, https://www.sbafla.com/about-the-sba/sba-additional-programs/florida-optional-
reinsurance-assistance/ (last visited Mar. 24, 2025).