Reserve established. When a Covered Event occurs in a subsequent Contract Year when reimbursable losses are still being paid for a Covered Event in a previous Contract Year, the SBA will establish a reserve for the outstanding reimbursable losses for the previous Contract Year, based on the length of time the losses have been outstanding, the amount of losses already paid, the percentage of incurred losses still unpaid, and any other factors specific to the loss development of the Covered Events involved.
Reserve established. The SBA will establish a reserve for the outstanding reimbursable Losses for the previous Contract Year, based on the length of time the Losses have been outstanding, the amount of Losses already paid, the percentage of incurred Losses still unpaid, and any other factors specific to the loss development of the Covered Events involved.
Reserve established. When a Covered Event occurs in a subsequent Contract Year when reimbursable losses are still being paid for a Covered Event in a previous Contract Year, the SBA will establish a reserve for the outstanding reimbursable losses for the previous Contract Year, based on the length of time the losses have been outstanding, the amount of losses already paid, the percentage of incurred losses still unpaid, and any other factors specific to the loss development of the Covered Events involved. *[***]: Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. BY HERITAGE INSURANCE HOLDINGS, INC.
Reserve established. When a Covered Event occurs in a subsequent Contract Year when reimbursable losses are still being paid for a Covered Event in a previous Contract Year, the SBA will establish a reserve for the outstanding reimbursable losses for the previous Contract Year, based on the length of time the losses have been outstanding, the amount of losses already paid, the percentage of incurred losses still unpaid, and any other factors specific to the loss of development of the Covered Events involved. (4) Advances (a) The SBA may make advances to the Company prior to December 31 of the Contract Year in accordance with Section 215.555(4)(e), Florida Statutes. All interest assessed will commence on the date the SBA issues a check for an advance and will cease at midnight on the date upon which the FHCF has received the Company's loss reimbursement report for the storm for which the advance was issued qualifying the Company for reimbursement equal to or exceeding the amount(s) of the advance(s). If, upon audit, it is determined that the Company received funds in excess of those to which it was entitled, the interest as to those sums will not cease on the date of the receipt of the loss reimbursement report but will continue until the Company reimburses the FHCF for the overpayment. The following procedures in Article X(4) apply to the specific type of advances enumerated in the Statute. (b) Advances to insurers to prevent insolvency. 1. Pursuant to subsection (4)(e) of Section 215.555, Florida Statutes, the SBA may advance certain Companies certain percentages of the SBA's estimate of reimbursement due the Company. Section 215.555(4)(e)1., Florida Statutes, provides that if Companies demonstrate to the SBA that the immediate receipt of moneys from the SBA is likely to prevent the Company from becoming insolvent due to the occurrence of one or more Covered Events, the SBA shall advance, at market interest rates, up to 50 percent of the SBA's estimate of the reimbursement due to the Company from FHCF. A Company is insolvent if it is unable to pay its policyholders for justifiable claims. The "market interest rate" shall be the then current interest rate being earned on the FHCF's investments. 2. Companies shall request a specific amount for the advance and shall demonstrate that the immediate receipt of moneys from the SBA is likely to prevent the Company from becoming insolvent by providing the SBA with the following information, determined in accordance with statutory acco...
