Property Insurance is a focus of the 2008 Florida Legislature. This is not always to the good, according to an editorial on the subject in an influential Florida newspaper, "Insurance Risks Still Looming" (St. Petersburg Times Online, Thursday, March 27, 2008).
The editorial highlights many areas of interest addressed by various bills passed or pending in the Florida Senate. Some of these areas of interest are shared in varying degrees by the Florida House of Representatives and by other State officials such as Florida's current Chief Financial Officer. Some were put in place by the 2007 Special Session of the Florida Legislature; some are new. Here are the more significant areas of interest addressed in the editorial:
- Expanding Citizens Property Insurance Corporation. Citizens is a public corporation owned by the Taxpayers of Florida. A Senate bill, according to the editorial, would allow Citizens to issue Insurance Policies "insuring homes worth $1-million or more."
- Extending the current rate freeze through 2009.
- Providing incentives through "a $250-million state incentive program" for private Insurance Companies to remove and take over the risk on Insurance Policies on which Citizens is currently on the risk.
- Reduce Florida's exposure to Reinsurance risk.
- "[R]esponsibly reduce exposure with both the CAT fund and Citizens, which can each assess policyholders when they run deficits."
Time, Hurricanes, the Florida Legislature, and Florida State officials will determine the outcome of these and other proposals. That is, if there is enough Time. And whether there is another Year of Hurricanes in Florida. Much remains to be seen.
Please Read The Disclaimer.
Comments