Which of the following BEST describes the Florida Hurricane Catastrophe Fund's (FHCF) assessment authority and its relationship to residential insurers under §215.555?

Why this is the answer

Under §215.555, the Florida Hurricane Catastrophe Fund is a mandatory reimbursement layer for all insurers writing residential property coverage in Florida — participation is not optional. The FHCF reimburses insurers for a portion of their covered hurricane losses above a retention threshold. When FHCF's liquid resources are insufficient after a major hurricane season, it can levy emergency assessments on policyholders (not just insurers) — capped at 6% per year per policy and 10% aggregate across all assessments. Option A inverts the mandatory nature and misstates the cap. Option B wrongly extends FHCF to commercial lines and misstates assessment structure. Option C is factually wrong — emergency assessments are explicitly authorized in the statute when bond/premium revenue is insufficient. Citizens Property Insurance is a separate residual market mechanism distinct from the FHCF per §215.555.