ORLANDO--The two men running to succeed him as Florida governor have made "foolish" proposals to deal with the state's problems with the property catastrophe insurance market, Gov. Jeb Bush told an insurer's conference yesterday.
Responding to questions at the annual meeting of the American Council of Life Insurers, here, Republican Gov. Bush, who is concluding his final term, said the most important advice he could give the Republican and Democratic candidates for governor is "do no harm."
The plans offered by the candidates in next month's elections--Republican State Attorney General Charlie Crist and Democratic U.S. Rep. Jim Davis--would either drive insurers away from the state or add an overwhelming burden to the state's finances, he said.
To deal with increasing property premiums, Mr. Crist has called for barring insurers from establishing Florida subsidiaries and requiring insurers that offer other lines, such as auto insurance, to also offer property coverage. "That would do more harm than good," Gov. Bush explained, noting that companies would be more likely to abandon the state altogether rather than be forced into a troublesome market.
Rep. Davis' plan calls for the state to assume most of the risk for windstorm damage to Florida homes, up to the first $500,000 of damage.
Gov. Bush said if Mr. Davis' plan were in effect it would have required the state to assume nearly all of the $38 billion in claims made for windstorm damage in the past two years--because 98 percent of claims totaled less than the $500,000 threshold.
Gov. Bush said he planned to call a special legislative session in December to work on property and catastrophe insurance issues despite the fact that his term will be expiring.
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