Posted on 05/31/2008 4:35:23 AM PDT by Brilliant
As hurricane season begins, Democrats in Congress want to nationalize a chunk of the insurance business that covers major storm-damage claims.
The proposal -- backed by giant insurers Allstate Corp. and State Farm Mutual Automobile Insurance Co., as well as Florida lawmakers -- focuses on "reinsurance," the policies bought by insurers themselves to protect against catastrophic losses. The proposal envisions a taxpayer-financed reinsurance program covering all 50 states, which would essentially backstop the giant insurers in case of disaster.
The program could save homeowners roughly $500 apiece in annual premiums in Florida...
But environmentalists and other critics ...say lower premiums would more likely spur irresponsible coastal development, already a big factor in insurance costs. The program could also shift costs to taxpayers in states with fewer natural-disaster risks.
"This bill makes it a little bit too easy for the state to go to the federal government for a bailout," said Eric Goldberg, associate general counsel at the American Insurance Association...
The two Democratic contenders, Sen. Hillary Clinton of New York and Sen. Barack Obama of Illinois, in their recent visits to Florida -- a key swing state -- have both voiced support for the plan...
"I'm calling on the voters in both parties to demand that the nominee of their party publicly support a national disaster fund," said Florida state Sen. Steven Geller, an uncommitted Democratic superdelegate. "If they won't, vote for the other party."
Republican presidential candidate Sen. John McCain, who badly wants to win Florida, is resisting calls to back the program...
The proposal envisions the creation of funds like Florida's in all 50 states...
In order to draw congressional support from states with somewhat less disaster risk, the federal program is designed to kick in for events that don't necessarily approach the catastrophic level...
(Excerpt) Read more at online.wsj.com ...
Why do you libs come here with your tripe go back to MOVEON.org where you belong..........
A: ... I'm not a lib by any stretch
B: ... my 10K premium here in Key West (yes I can see the water out my windows)from Citizens is a joke. It is a policy which I will pay into but from which I will never be able to collect
Citizens formulation effectively put all private windstorm providers out of business (except for Lloyds) and has no competition and no flexibility.
I understand that ability to discern someone's politics is directly correlated to the ability to comprehending a post. Perhaps your proximity to open water rivals that of your knowledge of windstorm insurance in a free market
Just a note of caution before you again begin throwing pejorative ad hominem at a fellow FReeper
and you forgot to thank me for paying part of your state subsidized premium
.
Because some politicians are trying to buy votes, that's why.
The state plans to mandate ever stricter building standards once they are the only game in town and you are effectively taxed by paying into this noncompetitive insurance pool
.
the figures show that the mid west flood plane is where the vast majority of the claims originate
when you can see the water out your window you tend to build to suit the terrain
.
Democrats in Congress want to nationalize a chunk of the insurance business that covers major storm-damage claim...
Holy crap!....the march to socialism continues. This is insanity.
Yea forgot about the lender part..he owns outright
And I want a pony.
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