The Florida Insurance Guaranty Association, which handles the claims of insolvent insurers, plans to borrow $600 million by selling municipal bonds, according to preliminary offering documents. It is the first time in three decades the agency has tapped the municipal bond market to help support insurance claims.
The borrowing provides the agency with needed liquidity. Our funding sources are somewhat limited, said Corey Neal, FIGAs executive director.
Historically, the agency has used investment income and the assets of liquidated companies to cover payouts. The last time FIGA sold a muni bond for such purposes was in 1993 after Hurricane Andrew devas…
Read the full article at: https://www.insurancejournal.com/news/southeast/2023/06/27/727406.htm