The Florida Office of Insurance Regulation (OIR) said it isterminating a 1.3% assessment on property policies 18 months aheadof schedule.

The Florida Hurricane Catastrophe Fund (Cat Fund) emergencyassessment, which the OIR says brought in $2.9 billion through May31, 2014, was used to reimburse insurance companies for claims fromeight hurricanes that hit Florida in 2004 and 2005. The OIR says ithas paid off the bond used to pay the claims early.

The assessment applied to all premiums on property and casualtyinsurance policies in Florida, including surplus lines butexcluding lines specifically exempted by law, the OIR says. Thecharge began at 1% in 2007 and was increased to 1.3% in2011. 

The OIR says the cat fund currently has $12.95 billionavailable, "which is made up of a projected 2014 year-end fundbalance of $10.95 billion and $2 billion in pre-event bonds, withadditional borrowing ability to pay future claims – its highestlevel in recent years."

According to the OIR's two orders—one sent to P&C insurersand the other to the Florida Surplus Lines Service Office (FSLSO)and surplus lines agents—while all policies issued on or after Jan.1, 2015 will no longer be subject to the assessment, it will stillapply to the "direct-written premium on all related transactionsincluding, but not limited to, endorsements, policy cancellations,and audit premiums related to policies issued or renewed prior toJan. 1, 2015…."

In a statement, Donovan Brown, state governmentrelations counsel for the Property Casualty Insurers Association ofAmerica (PCI), says, "PCI and its members applaud GovernorRick Scott and the Florida Cabinet for their years of leadershipand dedication to terminate emergency assessments on Florida'sconsumers. Under their direction, the property-insurance market hascontinued to rebound from the failed policies of former GovernorCharlie Crist. Today's announcement is proof that the Floridaproperty market is moving in the right direction, and will continueto benefit consumers and other stakeholders. Barring a majorcatastrophe, PCI and its members are cautiously optimistic that theFlorida property market is making great strides."