Posted On: July 17, 2008, 12:17 pm CDT

Posted By: An Interested Party

The article sounds like the insurance agents associations are endorsing their BIG Government Program, but as I understand it the association favors a pre-event bond and a post event bonding program to cover these types of losses.
All insurance in the area in question would be at a very slight increased rate to pay for the pre-event bonding.( People in high risk areas should pay a little more for the exposure...this program would raise their rates about 3%.) If, and only if, a large storm occurred then the entire state would have a modest increase for a matter of two to three years to pay for the post event bonding program. This would seem a much more favorable solution than another government agency and the tax base necessary to fund it on an ongoing basis. However the bonding program would not have the deals attached that the program and government interaction would have....so the simple solution will probably not be used...not enough room in it for the graft and greed.