Florida has approved issuance of up to $10 billion in short-term loans to shore up the state's hurricane catastrophe fund.
The action came at the State Board of Administration meeting yesterday in Tallahassee in an effort to give the fund enough cash on hand to pay claims for six months while it arranges longer-term financing to cover the $28 billion risk it now carries.
Earlier this year the legislature expanded the catastrophe fund capacity to provide cheap reinsurance for primary carriers in an effort to get the primaries to reduce their rates from savings the program would provide.
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