About the Florida Assessment

The Florida Assessment continues to apply in 2012. Effective January 1, 2011, the state of Florida raised the percentage contribution from 1% to 1.3% on new business only.

CMG MI understands you have questions regarding the Florida Assessment. Here is some information that can help your Credit Union comply with the Florida Emergency Order.

Background

Due to unprecedented hurricane seasons in 2004 and 2005, the Florida Hurricane Catastrophe Fund exhausted nearly all reserves accumulated since 1993. To rebuild its hurricane emergency funds, the State of Florida issued an Emergency Order in 2006 requiring all licensed property and casualty insurance companies, including mortgage guaranty insurers, to collect from Florida policyholders a special assessment of 1% on new direct written premiums as of January 1, 2007.

The initial assessment period was for one year, but Florida had the option to renew it annually for each of the following five years. The Florida Assessment, also called the General Emergency Assessment, has been renewed for 2011, and the percentage contribution is increasing from 1% to 1.3%, on new business only, effective January 1, 2011.

How Your CMG MI Policies are affected:

• Your CMG MI Commitment and Certificate of Insurance issued on or after January 1, 2011, on properties located in Florida include the 1.3% assessment.
• Premium bills for loans insured on or after January 1, 2011, include the 1.3% assessment.
• On renewal premiums, the assessment only applies to those loans insured on or after January 1, 2007; loans insured between 1/1/07 and 12/31/10 are subject to the 1% assessment; loans insured after January 1, 2011, are subject to the 1.3% assessment.

Questions? Please go directly to Florida’s Office of Insurance Regulation.