Declarations

10 Years

“Unless there’s some Einstein out there that knows something none of us do, the prevailing thought among the researchers is that a good 24-hour forecast of intensity change is a goal, a stretch goal, that might be attainable (in 10 years).”

—National Hurricane Center Director Bill Read telling Reuters that hurricane forecasters have cut their errors in predicting the track of hurricanes but are probably a decade away from being able to foresee a storm quickly revving up from a mild Category 1 to a destructive Category 5.

Fragile Florida

“Thus, the Florida hurricane insurance market remains fragile. It is a peak risk zone. The primary market is increasingly dominated by small, unrated Florida specialists and Citizens. Additionally, reinsurance rates are rising while primary rates remain constrained. The state, through the FHCF [Florida Hurricane Catastrophe Fund], provides subsidized reinsurance, but there is uncertainty as to whether the FHCF can meet all of its obligations in a severe storm season.”

—Fitch Ratings analysts in their 2009 hurricane season insurance report.

Doesn’t Make Sense

“Insurers do not insure applicants. Insurers insure policyholders. Applicants don’t pay premiums, policyholders pay premiums.”

—Florida Insurance Commissioner Kevin McCarty telling officials he believes an existing state ban on surcharges on insureds in accidents for which they are not judged at fault should apply to both applicants as well as existing customers. The state currently prohibits insurers from surcharging existing customers with not-at-fault accidents on their driving records. McCarty wanted to change the rule to ban insurers from surcharging new business applicants as well. But the expansion rule was rejected by the Florida Financial Services Commission.

Doesn’t Understand

“I don’t understand how the Obama administration can bailout AIG and Wall Street, but not pass legislation that protects the American taxpayers and homeowners.”

—Rep. Gene Taylor, D.-Miss., who lost his home to Hurricane Katrina and has sponsored a bill —the Multiple Peril Insurance Act of 2009—that would permit homeowners the option of purchasing both wind and flood coverage in one National Flood Insurance Program policy. Taylor, who has continued to promote his bill despite opposition from private insurers and some taxpayer and environmental groups, was blasting the Obama Administration for joining the opposition to his proposal to expand the NFIP.