Democratic Plan Aims for Stabilized Market

• A phase out of Citizen’s High Risk Accounts (windstorm coverage) will occur in three years (2009).
• Restructure current Cat Fund to be modeled after the National Flood Insurance Program to create the Florida Hurricane Insurance Fund.
• This fund will share the risk with private insurance companies for wind-storm coverage.
• Insurance companies issuing homeowner’s insurance policies will be writing the hurricane policies on behalf of the Hurricane Insurance Fund while other wind related coverage will be written by the insurer in order to provide policyholders with a single contact.
• The Hurricane Insurance Fund will sell a minimum layer of coverage with varying mandatory hurricane deductibles. The Hurricane Insurance Fund will charge consumers risk-adjusted, actuarially sound premiums based on the condition and vulnerability of the property.
• Surpluses will accumulate during good hurricane seasons so that funds are available during bad years.
• The fund would not need to make a profit, would not pay taxes and the risk would be more manageable.
• Policyholders will only work with a single claims adjuster, reducing administrative overhead and expediting the insurance claims process.
• Call for the creation of a Public Counsel to represent consumers on insurance rate matters, similar to the Public Counsel which currently exists for utility rates.
• Long-term premium savings will be witnessed as the insurance market will be stabilized and drastic insurance premium increases will diminish, and having more private companies vie for homeowner’s policies will increase competition in our state.
• Provide that 50% of the sales tax generated by all future hurricanes will be deposited into the Hurricane Insurance Fund and the remaining 50% appropriated to fund mitigation efforts.