Florida Gov. Jeb Bush last week criticized proposals for dealing with the state's catastrophic property insurance issues from both of the men seeking to succeed him, labeling aspects of the plans “foolish.”
Responding to questions at the annual meeting of the American Council of Life Insurers, Gov. Bush said the most important advice he could give the two candidates for next month's gubernatorial election is “do no harm.”
He added that the plans offered by the candidates in November'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.
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. However, Gov. Bush noted that plan would have required the state to assume nearly all of the $38 billion in claims made for windstorm damage in the past two years had it been in effect because 98 percent of claims totaled less than the $500,000 threshold.
Although he would be a “lame duck” by the time it occurred, Gov. Bush said he planned to call a special legislative session in December to work on property and catastrophic insurance issues.
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