Florida Hurricane Fund Has $17 Billion in Cash for Claims

May 20, 2010

The Florida Hurricane Catastrophe Fund is as healthy as ever heading into the 2010 storm season.

An advisory council to the fund reported Tuesday that it has enough cash and bonding ability to pay off more than $25 billion in losses if necessary. A financial adviser to the fund said Florida could withstand $17 billion in storm losses without having to seek additional bonding.

Advisers said the state has $6 billion in cash reserves, $3.5 billion in pre-event bonding and $7.1 billion in required private insurer contributions.

Bonds that are issued by the fund, which was created after Hurricane Andrew to help keep down the cost of insurance, are paid back by assessing insurance policyholders in Florida.

The insurance industry has been warning about the fund’s finances for years.

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