South Carolina Governor Sanford Issues Statement on Coastal Insurance Bill

Above: South Carolina Governor Mark Sanford

South Carolina Governor Applauds Senate’s Progress Toward Passing House Bill

Columbia, S.C. – May 31, 2007 – South Carolina Governor Mark Sanford today issued the following statement on the coastal insurance bill which received second reading by the South Carolina Senate:

“I commend the Senate for taking another significant step toward passing H. 3820, the market-based coastal insurance reform bill advocated by this administration and passed earlier this month by the House of Representatives. Specifically, I’d thank House Labor, Commerce and Industry Chairman Harry Cato and Senator Chip Campsen for introducing this legislation, and Senate President Pro Tempore Glenn McConnell and Senator David Thomas for their hard work in pushing this bill toward the finish line, as well as Director Scott Richardson for his hands-on approach at the Department of Insurance.

We’ve said repeatedly that the problem of escalating coastal insurance costs can in large part be addressed by finding ways to encourage, rather than discourage, insurers to write policies along the coast. Accordingly, this bill includes incentives to increase the availability of private insurance – which will promote competition, ultimately key to driving down premiums. It also encourages individual initiative by establishing tax-free catastrophe savings accounts, tax credits for those who make their property more wind-resistant and assistance for businesses and individuals interested in self-insuring.

Equally important, today’s action by the Senate signals to the insurance industry that South Carolina rejects the big government approach to addressing the wind insurance crisis that has been adopted by states like Florida – an approach that attempts to micromanage the private insurance market by forcing coverage, setting premiums and creating a state-run insurance company.”