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Palm Beach Post: Hurricane Catastrophe Fund headed for a catastrophe

Monday, December 05, 2011

Palm Beach Post – December 4, 2011

The article “Fla. hurricane fund has $3.2 billion shortfall” and the editorial “Avoid economic disaster” should be wake-up calls for every business owner, homeowner, renter, charity, church and automobile policyholder throughout the state. For years, we have stressed how a “hurricane tax” has the potential to financially cripple Floridians, and the announcement the Hurricane Catastrophe Fund is confronting a potential $3.2 billion shortfall demonstrates how the current system continues to leave everyone vulnerable.

Florida’s property insurance game of Russian roulette needs to be stopped. If the state cannot meet its financial obligations, it has no business selling protection. As legislators prepare for the 2012 session, I hope they strongly consider the proposals set forth by Jack Nicholson, CEO of the fund. He has warned that the fund is “dangerously overexposed,” but now more than ever we should take his advice and scale back the size in order to put the taxpayer-backed fund on sounder financial footing.


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