Rep. Gelber to Rep. Reagan: Extend CAT Fund Enhanced Capacity

House Democratic Leader Dan Gelber sent a letter today to House Jobs and Entrepreneurship Council Chairman Ron Reagan regarding insurance rate investigations.

Saying “The Florida House should not foster the perception that we are a “safe house” for insurers . . . ,” Representative Gelber suggests in his letter that the House should explore extending the enhanced reinsurance capacity of the Florida Hurricane Catastrophe Fund.

Representative Gelber’s letter is reprinted below, as well as attached for your review.

Should you have any questions or comments, please do not hesitate to contact this office.

_______________________________

Florida House of Representatives, Democratic Office

Jan. 15, 2008

The Honorable Ron Reagan
317 House Office Building
402 South Monroe Street
Tallahassee, FL 32399-1300
 

Dear Chair Reagan,

The insurance reforms passed by this legislature with bi-partisan support were well intended and a good first step, but I am sure you agree with me that results have been extremely disappointing. It has also been disappointing to watch the Senate and the Governor take aggressive action to enforce the provisions of the legislation while the House has been silent.

The Senate will be taking testimony of insurance officials under oath in early February, and the Office of Insurance Regulation is aggressively pursuing an investigation of why various insurers have not passed savings from the legislation to consumers.

The Florida House should not foster the perception that we are a “safe house” for insurers, and up to now we have done very little to prove otherwise. This is why I am today asking you to schedule hearings to also investigate the insurance industry and find out why the industry has failed to pass on to our residents the benefits purportedly offered in our last legislative package. We should not merely watch these proceedings on television and read about them in news accounts; our members deserve the same access to insurance executives in a forum to inquire and reach their own informed judgments.

I am also concerned that the clock will run out on any savings because the enhanced reinsurance capacity of the CAT Fund will soon expire. We need to address whether these provisions need to be extended and enhanced. We should follow the lead of the Governor and the Senate on this and take testimony from insurance executives under oath.

Thank you for your attention to this matter,

Sincerely,

Representative Dan Gelber

House Democratic Leader

 

cc. Speaker Marco Rubio

 

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