By PAIGE ST. JOHN
news-press.com Tallahassee Bureau
Originally posted on December 04, 2006
TALLAHASSEE - House Speaker Marco Rubio today kicked off a three-day study session on insurance, hoping to shift debate from the sweeping promises of the campaign trail to the pragmatic world of politics.
"We need a clear, concise understanding of what our options are, and a clear, concise understanding of what the consequences of our action are," Rubio said as he convened the off-campus workshop.
In prepping for a special session now slated for Jan. 16, the House is meeting informally at a Florida State University conference center overlooking the campus football field. The new House speaker said the process is a deliberate effort to broaden the upcoming special session, instead of the traditional route of taking up only what leadership had already agreed to in private.
"This issue is too big, too important," Rubio said.
In a setting intended to avoid the confrontational debate of the floor, Rubio's insurance tutorial saw more open questioning of industry perspective that has driven the Legislature's' debate of property insurance for the past two years.
It started with challenging the long-held claim that insurers are losing money in Florida, included in Rep. Don Brown's opening presentation. Brown, as the new House Jobs and Entrepreneurship Council chairman, is directing most of the House
policy heading into the January session.
"What happened to the 30 years of profits before Andrew?" asked Rep. Julio Robaina, R-Miami, who said much of the data is "distorted" by the prevalence of Florida-only subsidiaries of national companies that divert profits to their parent organizations.
House Minority Leader Dan Gelber, D-Miami Beach, questioned the profits also netted by the companies that sell backup catastrophe coverage to insurers. The 10 largest Bermuda re-insurers, for instance, netted $4.4 billion the first nine months of 2006.
"Insurance companies are already seen as victims in this state," said Rep. Curtis Richardson, D-Tallahassee. "What is the responsibility of the insurance industry?"
Brown defended such giants as State Farm and Allstate, crediting them for reinvesting in the state by loaning money to their Florida subsidiaries. However, he said he would support legislation to require any profits owned by those subsidiaries to remain within Florida.
Brown also was challenged by representatives who disagreed with his suggestion that some areas of Florida "are so dangerous, the risk of devastation is so certain, that no one in Florida should be asked to subsidize putting assets to risk in those areas."
"The coastal zone is responsible for our economic development," said Rep. Thad Altman, R-Melbourne. "Wouldn't it be best if we looked at Florida as one.that we all share in that responsibility" to provide "affordable" insurance.
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