All property insurers who want to apply for or maintain their status as a Limited Apportionment Company (LAC) must submit their applications to the Florida Office of Insurance Regulation by March 31. An LAC, as defined by Florida statute, is "an insurer with a policyholder surplus of $25 million or less, writing 25 percent or more of its total countrywide property insurance premiums in the State of Florida and who petitions OIR to qualify as a Limited Apportionment Company within the first 90 days of each calendar year, (no later than March 31), and whose petition to qualify has been approved by OIR."

Several important benefits come with LAC status. An LAC company may purchase a low-cost drop-down layer of reinsurance from the Florida Hurricane Catastrophe Fund. The company also is allowed to make monthly payments on any regular assessments levied in 2007 or thereafter by Citizens Property Insurance Corp. for its high-risk account. The full amount of the regular assessment must be paid within 12 months after being levied. Under some circumstances, the OIR may grant a deferment of a regular assessment levied by Citizens to an LAC company.

Contact OIR for more information. www.floir.com.