Pursuant to Paragraph (3)(d), Article X, of the 2005 Florida Hurricane Catastrophe Fund (“FHCF”) Reimbursement Contract, the process of finalizing participating insurers’ losses must begin no later than June 1, 2011. This process involves a valuation of claims that an insurer has received but has not yet paid (“outstanding losses”) and claims that an insurer anticipates but has not yet received (“incurred but not reported losses”). In most circumstances, these losses represent a small portion of an insurer’s recoveries under the Reimbursement Contract. The FHCF is concerned that some participating insurers may have very large amounts of outstanding losses and incurred but not reported losses, as a result of claims that were filed or reopened many years after the hurricanes covered by the 2005 Reimbursement Contract. The size of these losses raises the possibility that the process for finalizing losses may understate their value, resulting in disruption of the property insurance market in Florida, or may overstate their value, resulting in the need for additional bonding on behalf of the FHCF. Both of these potential outcomes endanger the public welfare. The FHCF has determined that alternative methods of finalizing these losses may significantly reduce the likelihood of either overpayment or underpayment, and will therefore protect the public welfare.