Florida - Tuesday April 18, 2023: The Florida Office of Insurance Regulation (OIR) has ordered a 1% emergency assessment fee on premiums collected on new, or renewed, insurance policies beginning on October 1st of this year.
The assessment will impact property insurance premiums, as well as a variety of insurance polices, but it will not apply to auto insurance premiums.
The fee is being imposed to secure enough funds to cover claims made to "insurance companies that have become insolvent or may become insolvent as a result of losses incurred due to hurricanes including, but not limited to, Hurricanes Irma, Michael and Ian."
OIR Commissioner Mike Yaworsky issued the emergency assessment order April 10 at the request of by the Florida Insurance Guaranty Association (FIGA), a non-profit corporation created by the Florida Legislature to handle claims of insolvent property and casualty insurance companies. State law requires OIR to order an emergency assessment upon certification of the FIGA board of directors.
In response to a request from WQCS, OIR Communications Director Samantha Bequer said -"OIR remains focused, as always, on protecting Florida’s insurance consumers. Assessments are used to secure funds, typically for the payment of covered claims related to new insolvencies so homeowners with open claims during an insolvency will see those claims addressed and paid. Assessments are approved by the FIGA Board of Directors."
The Consent Order is also available on OIR’s website at: https://floir.com/docs-sf/default-source/orders/property-and-casualty/2023/308776-23-figa-2023a-assessment-order-filed-04102023.pdf?sfvrsn=bb6bc518_4.