Florida - Wait a Minute... I have HOW much exposure???

[Morrison]

It looks like the State of FL is finally acknowledging how fiscally irresponsible their actions in the Homeowners and Commercial Property market have been. They are looking at using a mixture of re-insurance, Cat Bonds, and ILW's to lock in an expected Loss on a PORTION of their FHCF exposure rather than face the possibility of a huge loss. The coverage as of yet is unplaced. A large portion of the fund would still be unhedged. However, in exchange for about $700M of taxpayer funds this year, they can reduce the maximum possible assessment from about 10% of assessible premium to 5% of assessible premium in a worst case scenario.