The Florida Hurricane Catastrophe Fund could face a significant shortfall if a major storm hits Florida this year, the state's insurance commissioner told a State Senate committee yesterday.
Kevin McCarty, Florida Insurance Commissioner, speaking before the Florida Senate Ways and Means Committee, said there is a "cratering" of the financial sector due to the economic downturn, and municipal bonds are being affected as well.
Municipal bonds, Mr. McCarty said, are "the backbone of funding" for the hurricane fund, which backs up the private market in the wake of a hurricane by providing reimbursements to insurers for a portion of their catastrophic hurricane losses.
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