What is the trust fund requirement for alien insurers operating in Florida?

The trust fund requirement for alien insurers operating in Florida is set at $5.4 million. This amount is crucial because it serves as a financial guarantee that alien insurers—those that are incorporated outside of the United States—will maintain sufficient funds to cover their liabilities. This requirement is in place to protect policyholders in Florida by ensuring that there is a dedicated pool of assets that can be accessed in the event of insurability issues or insolvency.

In Florida, the surplus lines market accommodates risks that standard insurers may not cover, and regulating alien insurers with a significant trust fund requirement helps to ensure their financial stability. By mandating such a substantial trust, the state seeks to promote confidence among consumers about the reliability of the insurance products offered by these foreign entities.