Posted On: January 18, 2007, 2:29 pm CST

Posted By: Tom

This special session was a disaster. You have to be kidding, a 25% mandatory rate reduction??? Citizens is underfunded as it stands now and if the rate reduction is to apply to all insurance companies, they will virtually shut down the homeowners market, because the private insurers, who rate their policies based on sound actuarial underwriting guidelines and unlike Citizens have to answer to their reinsurers, cannot absorb underfunding their product.
All the legislature did was put a very small bandade around a potentially large problem. These geniuses in Tallahassee better hope we don't have any hurricanes that hit Florida in '07, with Citizens grossly underfunded, mandating a 25% rate reduction and Citizens not reinsured, the crap is going to hit the fan. Consumers are whining for the government to help us now,what happens after a hurricane Andrew or Charlie or Jeanne and companies start closing their doors because they were not able to properly underwrite a risk and charge the appropriate premium??? I guess we will get another special session. Then everyone can blame George Bush, like New Orleans did.
Absolutely unbelievable!