Jeb Bush in no hurry to call special session(re crippling insurance rates)

[seafan]

Jeb in no hurry to call special session

By Dara Kam
July 25, 2006

TALLAHASSEE — Dismissing a Democratic proposal that the state take over windstorm coverage, Gov. Jeb Bush said Monday he would not call a special session of the legislature on insurance until he is certain that a substantive solution would be passed.
Any such session would not be held before the November elections, he indicated in a letter to U.S. Rep. Ginnie Brown-Waite, R-Brooksville, who had asked for a special session.

Last month, Bush issued an executive order creating a 15-member task force to come up with solutions to the state's insurance crisis. He will appoint members to the Property and Casualty Insurance Reform Committee, he wrote to Brown-Waite.
"Their report is due by Nov. 15, and based on their findings and recommendations, a special session may be necessary," he wrote in response to a letter from Brown-Waite in which she urged him to appoint the committee quickly and call a special session to deal with rising insurance premiums.

Bush is soliciting ideas from other sources, including "Democrats, Republicans, Libertarians, Socialist Workers Party members, whoever," he said.

But he rejected a proposal by Democratic House members that would effectively make the state the windstorm insurer for every household in Florida, up to a certain amount, such as the first $100,000 or $500,000 of a home's value.
"What we're not going to do is to have the government be the insurer of wind — the first resort, middle resort and last resort," he said.

While in England, Bush met with senior officials at Lloyd's of London, a society whose members write a significant part of the reinsurance market in Florida.
"It's tough," he said. "They lost billions of dollars in the last two years in Florida.

snip

Congresswoman's call for special session on insurance rejected

By Dara Kam
July 22, 2006

snip

Brown-Waite, a Brooksville Republican, sent Bush a letter on Tuesday urging him to appoint members to the newly-created Property and Casualty Insurance Reform Committee and to call lawmakers into a special session to implement the committee's recommendations.

"Every public official in Florida has heard constituent outcry over skyrocketing insurance rates," Brown-Waite wrote. "Homeowners are in jeopardy of losing their homes and businesses are contemplating closing their doors. Constituent cries are no longer simple outrage; they are desperation and fear."

[xultar]

1. Flip through his Rolodex until you get to "I". Then you'll see why.

[Marlie]

3. It's terrible what people are going through

My friend in Miami got a non renewal on her homeowners insurance policy. She's
now been forced to go through the insurance pool. She lives in a very safe gated community, has a mid sized townhouse. Through the pool her premium is $4500 annually and this policy will not cover theft. Basically it's a catastrophic type policy with a $2500 deductible. She's had one small claim from water damage to a
ceiling in one room. That's it. I don't know what people are going to do.
The big companies have pulled out of the area. It's a dreadful situation. She's
far inland.

[Dirty Hippie]

2. Don't get me started on this

If they had listened to the geologists and not allowed people to build mansions on sand bars we would not be in this fix.

The vast majority of hurricanes (Andrew and Katrina are exceptions) damage primarily coastal properties.

Yet my homeowners insurance has more than doubles even though I live 25 miles inland.

[nosillies]

4. AAAARRRRRGH! Insurance makes my head explode.

I love knowing that even though I pay almost as much for my insurance each month as I do for my actual house, if I ever file a claim, I'll be paid a fraction of a penny on the dollar and then dropped like a hot potato.

If the state takes on windstorm, we will be required to bail it out as we do Citizen's? Most all of my recent increase was that percentage that every taxpayer had to throw in for Citizen's. Am I wrong, or am I helping to pay insurance costs for those rich enough to live beachside? (Caveat: I don't feel so bitter toward the older people on fixed incomes who have lived beachside for ages. I am super pissy, though, with the newly built multi-million dollar mansions that are covered by Citizen's.)

[Amonester]

5. "Bush in no hurry" = Exact description of these SOBs - eom

[tkmorris]

6. That asshole

We had insurance through Atlantic Mutual, a part of the Poe Financial Group. The Poe group was closed by the courts a few months back. We too have no option available except to be insured by the Citizens group, whatever it's called. Our insurance rates are going sky high, not that they weren't already, and they are being coy about telling us exactly how much.

Oh well, if you own a home in Florida you already know the story, and if you don't well, you wouldn't believe it anyway.

Jeb is putting off dealing with this because he knows that the Repub controlled Legislature, and of course he himself, have no intention of offering any real assistance to homeowners here. That might actually cost money and in Florida state funds are only spent on businesses, not citizens. So instead they will promise a solution, and after the election reveal that their "solution" doesn't actually relieve the homeowners burden at all.

If another major hurricane hits this state this year there will be a massive exodus, mark my words.

[DoYouEverWonder]

7. Why should Jeb lift a finger to help the people of FL?

That's wouldn't be good for business.

Jeb's money men love him. They are making a fortune and they don't even have to deliver a product anymore.

[IthinkThereforeIAM]

8. Real estate and insurance scams ...

... are Jebby's specialty. One of his former partners skipped the country with $15 million in medicare/medicaid funds. And then there are the documented real estate scams.

[LafayetteTGR]

9. Something's happening here in La.

Allstate insurance has raised rates on almost everyone here, especially those of us who are considered living in coastal parishes. I live in Lafayette Parish, which to me is not THAT coastal. However, they are still trying to drop our hail and wind coverage because of hurricanes Rita and Katrine. It really pisses me off considering the fact that neither of those storm really affected this area and there were little or no claims in our parish. By law we are required to have insurance, but as soon as something happens they just raise the rates even higher to "offset the costs." We are get royally screwed up the rear. x(

[nosillies]

10. Oh, just wait.

They'll soon get you like they get us in FL. When LA has to start creating "insurers of last resort," then you should start freaking.

[politicat]

11. Interesting....

My husband works for one of the only insurance underwriters left on the Gulf Coast who insure against hurricane damage. (Flood is a separate policy.) Pretty much everyone is pulling out which means that his company is doing really, really well (which is very good for us personally, but not so much for the rest of the world).

What I find really interesting about this, however, is that the company has not had to raise rates at all, and in fact, they're cutting some rates in some areas because reconstruction is bringing buildings up to code. It's much cheaper to insure a concrete block builing on a porous foundation than it is to insure a wood building that's 40 years old. The companies are making money, but it is far more due to volume of business than rate changes.

So somewhere other than at the insurers, the rates are rising. Vulcan isn't doing it (my husband's parent company) and his company isn't doing it, which leaves only one layer left between insurance industry and the consumer: the agent and local agency. Since Florida has a state run agency that insures pretty much everyone, why would they be raising the rates? Does the state need the profits so badly? Or is the money being siphoned off somewhere in the middle?

It doesn't surprise me at all that Jeb won't have this investigated. He's likely to be the one profiting most from this.

[nosillies]

12. Florida's state run agency is it's own can of worms.

And yes, there's a push right now for better auditing and oversight of this insurer (Citizen's). Citizen's is only for those homeowners denied coverage by everyone else. By law, Citizen's has to keep it's premiums a certain percent higher than the highest priced private insurer. And ALL Florida residents have had recent increases in our homeowner's premiums, regardless of our insurer, to "supplement" Citizen's. Highly contentious policy, as you can imagine!

The other major insurers (State Farm, etc.) have pretty much just stopped offering coverage in Florida, period. I'll try to explain this as best as I can -- anybody else feel free to help out. They stopped offering coverage because they claimed they had lost too much money. How can this be, when their financials show huge profits? Because they set up separate entities in Florida, distinct and different from their national companies and distinct and different from their other policies (auto, boat, etc.). Therefore, since their "Florida Homeowner's Insurance Only" company financially has no ties to their other businesses, they can claim to be broke and quit offering policies. This has led to no competition. The few remaining small insurers can charge whatever they want, and can turn down anyone for whatever reason. Those unable to find any coverage (coastal residents, mobile home owners, older home owners), are then really gouged by Citizen's -- or else they go without coverage.

Again, sorry if this was a really crappy explanation. I try to keep up with things -- my local newspaper has great articles on this saga every day -- but I've written so much today I'm burned out! I'll be glad if anyone else in FL can help me shed some light on this.

[Supersedeas]

16. hmmm, a delay for those Crony companies to make $$ while they can

[nosillies]

13. If interested, here is a great synopsis of main gubernatorial candidates'

stances on how to improve the insurance situation in Florida. These are their own words! In no particular order:

Jim Davis (D)
http://www.news-journalonline.com/NewsJournalOnline/Opinion/Editorials/opnOPN73071606.htm

Tom Gallagher (R)
http://www.news-journalonline.com/NewsJournalOnline/Opinion/Editorials/opnOPN74071606.htm

Charlie Crist (R)
http://www.news-journalonline.com/NewsJournalOnline/Opinion/Editorials/opnOPN72071606.htm

Rod Smith (D)
http://www.news-journalonline.com/NewsJournalOnline/Opinion/Editorials/opnOPN75071606.htm

[seafan]

14. Update, July 27: Bush considering state-run pool for business insurance

Isn't it interesting how this guy won't budge on anything, even if he is wrong, until he is sufficiently shamed into it. But, yet again, he will always favor business over the common citizen.



Bush considering state-run pool for business insurance coverage

The Associated Press
July 27, 2006

TALLAHASSEE -- Gov. Jeb Bush is proposing a state-run insurance pool for businesses that can't get policies from private insurers, saying that if companies can't get coverage, it could lead to an economic downturn.

Bush said today that he has asked Insurance Commissioner Kevin McCarty to bring a plan for a state business insurance pool to next week's meeting of the Florida Cabinet, which would have to approve it before it could be created.

The problems that many homeowners and businesses in Florida have in getting coverage for hurricane damage is well known, and state policy makers have tried to deal with that issue for years. Citizens Property Insurance Corp. is a similar pool that sells hurricane damage policies for those who can't get it in the private market.

But businesses in Florida have reported trouble getting any kind of coverage, so-called "all perils" insurance, and have seen policies canceled and rates increase.

Creating an insurance pool that would guarantee companies could at least find a policy "would be a way to create a little bit of stability and get a little more capital in the commercial side," Bush said.

snip

[seafan]

15. Update, July 29: Bush May Call Special Session On Insurance

The pressure is building.


Bush May Call Special Session On Insurance

Gov. Jeb Bush may be warming to the idea of calling a special session of the Legislature to consider Florida's homeowners insurance crisis. Several candidates in both parties are pressing the issue on the campaign trail, and Bush acknowledged the level of concern.

"I don't have to look at a poll. I can promise you it's the No. 1 issue in the state," Bush said Wednesday.

snip

If a consensus can be reached, "we can have a special session prior to Nov. 15," Bush said. "The election to me is not a relevant factor in this."

Then he paused, perhaps considering fellow Republicans who are running this fall. "Now, it may be to others, so I'd have to consult."

[oc2002]

17. Global Warming, Climatic Changes, The Insurance comp. know bad things are

comming to FL.