While there are outstanding public securities payable under
Insurance Code §§2210.612, 2210.613, or 2210.6131, or outstanding
class 1 public securities issued before June 1, 2015, the association:
(1) must consider its obligations for the payment of
public securities payable under Insurance Code §§2210.612,
2210.613, or 2210.6131, and class 1 public securities issued before
June 1, 2015, including the additional amount of any debt service
coverage that the association determines is required for the issuance
of marketable public securities in developing its rates;
(2) must include in a rate filing submitted to the
department an analysis that demonstrates that the filed rates produce
premium sufficient to provide for at least:
(A) the expected operating costs of the association,
including expected nonhurricane wind and hail losses and loss adjustment
expenses; and
(B) the expected payment of public security obligations
payable under Insurance Code §§2210.612, 2210.613, or 2210.6131,
and class 1 public securities issued before June 1, 2015, including
any contractual coverage amount the association determines is required
for the issuance of marketable public securities, during the period
in which the rates will be in effect; and
(3) must include a cost component in the rates sufficient
to at least provide for the expected payment of public security obligations
for public securities payable under Insurance Code §§2210.612,
2210.613, or 2210.6131, and class 1 public securities issued before
June 1, 2015, during the period in which the rates will be in effect.
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