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  #11  
Old 06-26-2007, 02:30 PM
Money Money is offline
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Originally Posted by Frenchie View Post
I wandered off in thought and got mad all over again at FL cutting property taxes by taking $2 billion from education! Sorry, I digress...and I don't think my post was at all helpful.
Any article showing that? I didn't know that is where the cut was coming from, not like i really have read up on it either.
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  #12  
Old 06-26-2007, 02:40 PM
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Originally Posted by Money View Post
Any article showing that? I didn't know that is where the cut was coming from, not like i really have read up on it either.
I'll see if I can find it later. I heard it on news radio.
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  #13  
Old 06-26-2007, 02:44 PM
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Here's an article that says they're leaning against reinsuring:

Quote:
State 'leaning against' more backup insurance for its own fund

By DAVID ROYSE
Associated Press Writer


TALLAHASSEE, Fla. (AP) -- The state catastrophe fund that pays damage claims when home insurers cannot is "leaning against" buying additional backup coverage for itself, because the cost would outweigh the need, Florida's chief financial officer said Monday.

The extra reinsurance for the Hurricane Catastrophe Fund would cost about $600 million, and buying it would leave less money available to pay claims for smaller storms, Chief Financial Officer Alex Sink said. She said that is why the state is unlikely to buy it.

"I think it would be something that would be, maybe, nice to have to protect ourselves against a big, bad one but ... we don't need it in order to maintain the financial well-being of our state," Sink said in an interview.

Financial companies have approached the state about the extra insurance, which would reportedly cover about $6 billion in damages.

"At the current moment it appears that it would be very, very expensive for us to purchase this kind of reinsurance for a storm event that only has a 2 percent chance of occurring," Sink said.

Another problem with buying the extra coverage is that the so-called CAT fund could be largely depleted from claims, but not enough to have reinsurance kick in, Sink said.

If the fund were to come up short and be unable to pay claims, the difference would be paid for with assessments on several types of insurance policies, including homeowners and auto coverage.

The fund also could be tapped if it did not have enough to pay for the backup coverage it provides to private companies. Lawmakers earlier this year expanded the fund to provide that insurance, which is expected to cut costs for customers.

It was one of several changes the Legislature made in an effort to put a dent in the burgeoning cost of insuring a home against hurricane damage, especially after the active 2004 and 2005 storm seasons.

The fund's exposure before the law change would have been from $6 billion to $16 billion, but now it is up to $28 billion.

"I'm always looking at decisions we make that won't bankrupt our state and at the $28 billion level our experts are telling us that they can see our way clear to being able to issue bonds in the event of a storm so that we can pay our claims," she said.

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  #14  
Old 06-26-2007, 05:22 PM
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"I think it would be something that would be, maybe, nice to have to protect ourselves against a big, bad one but ... we don't need it in order to maintain the financial well-being of our state," Sink said in an interview.
Cynical translation: "We know that if there is a 'big, bad on' that Florida will be bailed out by the other states, so we decided not to buy insurance.
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  #15  
Old 06-26-2007, 05:23 PM
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After I posted, I wondered if it was the name of an advisory firm rather than an individual. I do hope that some actuaries were involved in analyzing the risk exposure. . .
http://www.raymondjames.com/about/history.htm
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  #16  
Old 06-26-2007, 07:23 PM
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Originally Posted by Frenchie View Post
I'll see if I can find it later. I heard it on news radio.
It's being debated by the legislature;from what I have heard, most of them are trying to find a way to please everybody, which means they will probably please nobody.

I personally am all for the education cuts as these property tax adjustments do very little for me. But I understand and sympathize with those who fear FL will revert to 50th nationwide in education with these cuts.

There is also some talk in FL of introducing legislation whereby only people with kids in the schools will have to pay school tax. That would be something.

Business as usual in the Banana Republic.
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  #17  
Old 06-26-2007, 07:24 PM
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Originally Posted by PK View Post
Cynical translation: "We know that if there is a 'big, bad on' that Florida will be bailed out by the other states, so we decided not to buy insurance.
I disagree. I think it's just political shortsightedness. I think that other states would fight like cats and dogs to avoid bailing FL out.
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  #18  
Old 06-26-2007, 11:03 PM
Westley Westley is offline
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Originally Posted by MattTheSkywalker View Post
I disagree. I think it's just political shortsightedness. I think that other states would fight like cats and dogs to avoid bailing FL out.
You know that you would expect that, but
1) Florida is a swing state, so it matters, and
2) they didn't for NOLA
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  #19  
Old 06-27-2007, 07:42 AM
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Reality is that words in Florida mean exactly what the politicians want them to mean.

I still haven't made up my mind whether the politicians are so dumb that they have no comprehension what the potential impact of their actions is or whether they're counting on the results being so bad that the Feds have to bail them out. I can make arguments both ways (and I've had lobbyists take both positions).
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  #20  
Old 06-27-2007, 08:43 AM
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Originally Posted by Westley View Post
You know that you would expect that, but
1) Florida is a swing state, so it matters, and
2) they didn't for NOLA
I think it would be much more controversial if it were to happen in NOLA again though. How many lessons does Florida need before they deal with the problem?
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