Some Insurance industry spokespersons are quoted with this opinion: State Governments are anti-competitive when they make limited forms of Property Insurance available through access to the State Treasury in the event of a Catastrophe. See, for example, "Coastal States Taking More of Insurance Risk" published online on Saturday, June 9, 2007 by the St. Petersburg Times (not currently available online as of June 10, 2007), try accessing this site Online.
We in Florida know different. We know reality. In Florida, private insurers decline the risk of CatClaims, almost totally. The overwhelmingly Republican Legislature has put the treasury of the State of Florida behind the worst of possible CatClaims, to the extent of $452,000,000.00 it is reported in the article. The Legislatures and Assemblies of California, Massachusetts, Louisiana, and Texas -- all coastal States -- have exposed their own State Treasuries to the extent of a collective $131,000,000.00 according to the same article.
States are rushing in and forcing insurers out? Wrong. State governments are attempting to provide different solutions to the same problem of private Insurance Companies fleeing the risk of CatClaims. If Insurance Companies decline to accept the risk of CatClaims, they are free to decline the risk. Whether these solutions on the other hand, or any of them, are desirable or effective in the future remains to be experienced in the future. For now, they are the undisputed evidence of reality.
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