Fla. Calls for Federal Insurance Subsidy

May 4, 2006

  • May 4, 2006 at 12:59 pm
    bob says:
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    so the rest of the U.S. should prop up the Floridiana \’cause they don\’t like their high insurance premiums? gimme a break – if you live in a high risk zone, pay the price and don\’t expect everybody else to bail you out.

  • May 4, 2006 at 1:05 am
    Compman says:
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    I agree with you 100% Bob. Where was this bozo Gallagher when the Loma Prieta or Northridge EQ\’s hit California. I did not see him out here trying to help out. If you choose to live in a disaster zone, then you are going to have to pay more.

  • May 4, 2006 at 1:26 am
    John says:
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    Actually, a federally supported backstop, cat relief fund, or pool would be a sound endeavor for the entire country, the same way TRIA would help insurers stay solvent in the event of another economy crippling event. It\’s not about one state; it\’s about an ever increasingly hostile global climate which will no doubt make its presence felt in states previously unscathed by severe weather phenomenon. Anyone who doesn\’t \”get\” that doesn\’t know anything about insurance or the economy.

    Another large enough cat (or series of cats) in the Florida and Gulf region can effect many things we take for granted.

    Where do you live Bob, that you feel there wouldn\’t eventually be a trickle-down to your local economy, insurance rates, price of fuel, orange juice, travel, construction, health care, etc. would not be affected? Canada (no knock intended towards Canada)? If so, let Americans work to help other Americans and continue worrying about your little corner of the globe. And, if you\’re not Canadian, the same advice still applies.

  • May 4, 2006 at 1:31 am
    Rich says:
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    I know of a company that would probably take the Florida blizzard part of the risk. Does anybody want the volcano part?

  • May 4, 2006 at 2:06 am
    bob says:
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    spoken like a true socialist. Actually, I think I do know quite a lot about insurance. I know that to have actuarial sound rates, you have to charge the appropriate premiums. And I know that \”territorial rating\” is supposed to help address those differences. But you, like many others, want to spread the risk clear out to those have have virtually no exposure, just to prop up those who have made poor choices in construction, building codes, flood zones. Again: gimme a break! Involving the feds in an insurance program has certainly worked well with FEMA, hasn\’t it? And you want more of the same? Or even on a larger scale to involve more than just flood????

  • May 4, 2006 at 2:06 am
    Compman says:
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    While I understand John\’s reasoning. It is somewhat flawed. Why should the rest of the country subsidize Florida when there is a good chance that it is going to get hit with a major hurrican at least every 3-5 years. I don\’t think that many ice storms hit that often and cause that much damage. I subscribe to the notion that if you want to continue to live where it might not be compatible with habitation, then you must be willing to absorb that risk yourselves.

  • May 4, 2006 at 2:13 am
    Compman says:
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    Bob,

    Are you my long lost brother? We sure have the same opinion on this.

  • May 4, 2006 at 2:22 am
    Mark, a former Floridian says:
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    1) Read the story of The Three Little Pigs, over and over if necessary.
    2) Don\’t build below sea level.
    3) Read The Federalist Papers.
    4) Never subsidize insurance. This will only serve to encourage that behavior we ought to be discouraging, in this case building in and increasing the population of coastal areas prone to hurricanes.

  • May 4, 2006 at 2:25 am
    bob says:
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    gee, I though I was the lone voice in the wilderness, crying out against those who continually want to get in my pocket – and generally as a result of their own poor choices in life. What John and his leftist colleagues call \”social justice\” I call just another form of welfare.

  • May 4, 2006 at 2:29 am
    bob says:
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    hey, there is another one of us out there: Mark, the ex-floridian

    congrats, Mark, on understanding the capitialist, free enterprise concept of business like Compman and I do!

  • May 4, 2006 at 2:31 am
    John says:
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    Some people just don\’t get it. This goes far beyond \”territorial rating\”. If the insurance industry suffers another bad year, some carriers and reinsurers will go out of business (yes, they might make way for new \”opportunists\” capital to come in – in many cases they may just offer a short-term fix, others will stick around) and some will suffer enough to hurt its shareholders and make them second guess less exposed coastal areas (i.e. the Northeast and Northwest), middle-America (New Madrid, Tornado Alley, etc.) and be gun-shy to write anything that has a chance for a blizzard or Nor\’Easter hit. Not to mention what the financial rating companies will do to their long-term outlook. This is when the economy will suffer (and for that matter, the global economy) and the entire country will feel the effects.

    Do you think that another terrorist attack in New York City is just New York\’s problem if the financial district gets wiped out for a few months?

    BOB, I always vote the \”right\” way, so take your socialist comment and put it where your first comment to this issue belongs. This is an issue that any Republican or American for that matter should be concerned with.

    Just out of curiosity, where do you stand on the notion that global climate changes are being accelerated due to human intervention? I bet you think that\’s a socialist ploy begun by greenpeace to force you to give up your 8-cylinder pick-up…

  • May 4, 2006 at 2:57 am
    TXGuru says:
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    Bob, Mark, & Compman…glad to know at least a few other people out there get it.

    I think the basic premise is that of personal responsibility and accountability. I have no problem with anyone\’s choice about where and how to live…just don\’t cry to me when it comes back to bite you. I don\’t care if it\’s hurricanes wrecking your home or the clogged artery from a life of slurping french fries and smoking two packs a day.

    Unfortunately, very few people are willing to take that upon themselves in a society that is increasingly populated with those that feel they are \”entitled\” to certain rights without shouldering the burden of paying for them. And why should they bother when recent history tells us that Big Brother will step in with our tax money to bail them out? Welfare – Part II.

    Ladies & Gentlemen – please remember that this is a capitalistic society. Socialis not now, has never been, and will never be the answer to these types of issues.

  • May 4, 2006 at 2:59 am
    John says:
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    I agree with Mark about not living in an area prone to disaster. That\’s why I chose not to live in the Gulf, or California, or New Orleans, or Tennessee, etc.

    I just believe the weather has gotten far worse than anyone weighing the risk of living or vacationing or opening a business in a prone area (let\’s face it, even the cat modelists got it wrong) could have imagined. And these spikes in weather will affect areas with very little exposure as well, so building a fund (at least partial or cap relief) will come in handy more than anyone can realize at this point. I know all about past lessons – but speaking of past lessons – if there is anything to be learned from the past two years – past 5 years if you count deliberate catastrophe, is that past history doesn\’t count anymore. What we are seeing now is unprecidented.

    By the way, I like most of us reading this publication, make a living selling privately offered insurance (including cat cover and political risk), but what if there is no cover left to sell? At any price? Gee, that\’s sort of going on right now…

  • May 4, 2006 at 3:38 am
    bob says:
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    John, the point is that those in a high risk area should shoulder the insurance expense. Trying to spread the cost of that risk to people living in low risk area defeats the principles of insurance. Let the gulf coast set up their own high risk cat plan if they want/need it; just don\’t force those of us in low risk areas to particpate.

    And yes, I do beleive global warming is probably greatly affected by the fact we have 6 billion people screwing it up. Just because I am a stong fiscal and social conservative doesn\’t mean I can\’t be a conservationist and I realize the world is not flat. But that is another subject we can get in a pissing match about another time.

  • May 4, 2006 at 4:04 am
    John says:
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    OK, touche, touche…

    What I really think is that there is no simple answer. I certainly do not want to take funds out of my pocket for someone\’s poor judgement in where they live, but I do not want to see a collapsing economy either.

    I think there is already money enough in federal government vaults without going into the pockets of the hard-working citizens of this country. The problem is that it goes to other countries\’ defense and distaster aid instead of being ear-marked for our own increasing needs (but then, there are ways and means in that money going elsewhere too – assuming you don\’t want an excuse to import oil from Canada, who has more than enough already refined to share).

    Again, a discussion for another time.

    Good sparring with you. Have a good one Bob.

  • May 4, 2006 at 4:23 am
    bob says:
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    John, there you are with that hand back in the goverment\’s pocket again.



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