The Florida Office of Insurance Regulation said the state's Cabinet approved a rule implementing legislation giving the insurance commissioner discretion to allow reinsurers to conduct business in Florida without posting 100 percent collateral.
The department said the rule will only apply to the financially strongest unaccredited reinsurance companies and enables the department to "further its efforts at finding alternative approaches to improving" the state's property insurance market.
The Florida Legislature passed the bill allowing the change in 2007. It gives the insurance commissioner the ability to establish lower collateral requirements of foreign reinsurers that are highly rated and financially sound.
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