Florida fund has changed, but is pressure off?Four major hurricanes in 2004 hammered ham·mered adj. 1. Shaped or worked with a metalworker's hammer and often showing the marks of these tools: a bowl of hammered brass. 2. Slang Drunk or intoxicated. Adj. Florida insurers with $23 billion in insured losses, leading to changes to the Florida Hurricane Catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). Fund. But at least one insurer says those changes don't go far enough in addressing the strains on the state's homeowners insurance market. Effective for the 2005 hurricane season Hurricane season refers to a period in a year when hurricanes usually form. For more information see: Tropical cyclone#Times of formation. For a lists of past seasons, see:
"We thought it was reasonable," State Farm spokesman Chris Neal Christopher "Chris" Neal (born 23 October 1985 in St Albans) is an English footballer who currently plays as goalkeeper for Preston North Ende. He made his league debut for Preston North End as a substitute, coming on in the 18 February2005 match against Ipswich Town. said of the changes. He said a wide variety of proposals were made to change the cat fund after 2004's hurricane season, and most of them were acceptable to State Farm. But Allstate Corp., whose subsidiary Allstate Floridian Insurance Co. operates in Florida, has expressed its disappointment in the changes. "Primarily, we think there need to be more enhancements," Allstate spokeswoman Deb Clouser said. Allstate, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a Web site it maintains on Florida homeowners insurance issues, wants the following changes to the cat fund: * Expand the cat fund to eventually provide 100% protection for all hurricane damage; * Expand the cat fund's capacity from the current $15 billion to $18 billion, using its federal tax-exempt status to accomplish this; * Give a single seasonal deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). for insurers; and * Lower the level of losses an insurer must bear to access the fund. Allstate said it believes these proposed changes are needed because the 2004 hurricanes "wiped out 80% to 100% of the surplus Florida insurers had to pay claims." The company said Florida's current situation is "not sustainable" because the state is growing rapidly and its growth of housing is outpacing new insurance capital to cover homes and pay losses. Allstate also said reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. in the state is expensive and greater levels are needed because of 2004--the cost of which is passed on to consumers in higher rates. Edward M. Liddy Edward M. Liddy is Chairman, President and Chief Executive Officer of The Allstate Corporation. He is currently on the Board of 3M, Goldman Sachs and The Kroger Company. • • , Allstate's chairman, president and chief executive officer, has pointed out, as a reason for increasing the role of the cat fund, that the entire property/casualty industry has about $370 billion in capital and that a large catastrophe or series of catastrophes could cause major insurance insolvencies. |
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