New Law Changes Assessment Process for Guaranty Association

The Florida Insurance Guaranty Association gave notice that a bill signed into law in May has changed the process by which carriers pay annual assessments. Senate Bill 836 streamlines the assessment process to ensure FIGA has adequate funds to pay covered claims in the event of an insurer insolvency. The new law: Defines a new term "assessment year" as a 12-month period starting the first day of any calendar quarter (January, April, July and October). Creates a uniform assessment percentage and recoupment period to be applied by all insurers, eliminating individual recoupm...