First Steps toward Restoring Florida’s Insurance Market

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As Florida’s Legislature proceeds with its 2008 session, several proposals to modify the state’s insurance environment appear likely to receive serious consideration and debate. This paper analyzes several of the more prominent ones.

The paper consists of four sections. The first offers a very brief overview of the state’s current insurance environment. The second considers a proposal to bifurcate Florida’s homeowners’ insurance environment into pools respectively liable and exempt from special, unilaterally imposed state insurance premium taxes. The third considers other proposals impacting commercial property and the size of the Hurricane Catastrophe Fund. Finally, the brief conclusion argues that, while all of these proposals deserve serious consideration, none will solve Florida’s insurance woes on its own.