The Gainesville Sun
Letters to the Editor
By Bill Newton
May 29, 2012
The Florida Consumer Action Network (FCAN) agrees with The Gainesville Sun’s editorial “Bad Business” (May 20).
Citizens Property Insurance Corp. has approximately 25 percent of Florida’s homeowners insurance market. If a major storm or series of storms were to hit Florida, Citizens could be forced to use all its reserves, all of the Cat Fund and then attempt to borrow the remaining balance from the open market through bonds which are paid off through hurricane tax assessments levied on all Florida consumers.
We believe Citizens should purchase more reinsurance from the private market in order to spread the risk worldwide instead of concentrating it within the state. Private reinsurance would pay claims instead of the assessment-backed Cat Fund, and would help to stabilize the property insurance market, encourage the return of private companies and alleviate the financial burden currently on the backs of all Floridians.
Bill Newton,
Executive director
Florida Consumer
Action Network
Tampa
http://www.gainesville.com/article/20120529/OPINION02/120529721/1077/opinion?p=2&tc=pg
