Florida Catastrophic Insurance Reform

The Miami Herald, on January 22, 2007, quoted Florida State Congressman
Marco Rubio as saying the insurance plan being considered would lower rates.
He was quoted "having the state shoulder an unprecedented $35 billion in
insurance risk, and expanding state-run Citizens Property Insurance to
compete with private companies in high-risk areas."

This a cop out; no measures were taken which will change the way
insurance companies do business in this state. The legislature took
a gutless, side stepping measure which simply absorbs some of the
risk the insurance companies usually must assume. Big deal! Now the
State is one the hook for billions! Brilliant! Creative! Cowardly. A
shell game scam. They should be ashamed. The insurance lobby at work
again.

The insurance companies should be required to spread the risk of all
the insurance they write in the State Of Florida over their similar risk
in the entire nation; Florida should not be a separate pot. If they don't, they
cannot do business in this State. We had nothing last year; some had
floods, wild fires, snow storms, wind damage. That's the way it goes.
By amortizing risk over a greater area, everyone's rates would go down.
And what happened to the national catastrophic insurance
program?

The legislature has not challenged or controlled the insurance industry
one iota. Get some reporters on this who understand the rules of the
game, not ones who take the propaganda the legislators dish out
and call it reform. They have just shifted the risk to us. Thanks
a bunch.