Floridians to pay debt for 2004/2005 hurricane damage

[JonathanBelles]

TALLAHASSEE (Bay News 9) -- Florida's catastrophe fund is beginning to run out of money to cover the damages from the hurricanes that hit Florida a few years ago, and now Floridians with insurance policies are going to pay the leftover debt.

The catastrophe fund is a backup insurance program designed to keep insurance rates low and insurance companies in business.

Floridians with a homeowner, auto, boat or motorcycle insurance policies have been paying a 1 percent fee to pay for the claims resulting from the hurricanes in 2004 and 2005.

State regulators have decided it isn't enough.

Tuesday a board headed up by Gov. Charlie Crist voted to tack on an additional 1 percent fee that Floridians have to pay for the next two years to cover the $600-million bill. Without it, some predict Florida's catastrophe fund will run out of funds within a few months.

But Crist is also calling for an industry audit. He wants to make sure the money's not being wasted on illegitimate claims.

"Sure, I'm concerned," Crist said. "When the CFO and General Milligan both articulate that there may be illegitimate claims in there, you know that's always a possibility. I know from my days as attorney general that that's a possibility. I just think that additional due diligence is always good."

The accusation that there are illegitimate claims is not unfounded. Claims from 2004 and 2005 continue to be filed and many are being reopened. Regulators have a hunch lawyers may be profiteering at the expense of insurance payers.

The new assessments are another sign of how risky the catastrophe fund can be. Due to recent insurance reforms, a repeat of the 2004 and 2005 hurricane seasons could put the state in a position to pay 10 times the losses it suffered a few years ago.

http://www.baynews9.com/content/36/2008 ... ane+damage

[HURAKAN]

Great news for the housing and auto market. Bad news everywhere.

[HURRICANELONNY]

Regulators have a hunch lawyers may be profiteering at the expense of insurance payers.
NO WAY. I DON'T BELEIVE IT. NOT LAWYERS.