Agency: The State Board of Administration Finance Corporation was created as a public benefits corporation created for the purpose of issuing debt to provide a source of funds to the Florida Hurricane Catastrophe Fund.
Purpose: The bonds are issued to provide funds to enable the Florida Hurricane Catastrophe Fund to reimburse participating insurers for a portion of hurricane losses in excess of the amount of each insurer’s loss retention. Bonds can be issued on a pre-event (taxable) or post-event (tax-exempt or taxable) basis.
Security:
- Pledged Collateral: The bonds are secured primarily by reimbursement premiums, emergency assessments and investment earnings associated with the pledged collateral. Each series of pre-event bonds are also secured by their bond proceeds unless they are used to reimburse covered losses.
- Debt Service Reserve Fund: The bonds are not secured by a reserve account.
- Lien Status: The bonds have a first lien on the pledged collateral.
- Additional Bonds Test: Additional parity bonds may be issued following an Incurrence Test, which, in part, requires that Assessments be ordered or levied in amounts estimated to be sufficient to pay debt service.
Frequency: As needed.
Including Annual Reports, Claims-Paying Capacity Estimates Reports and Probable Maximum Losses Reports.