Shield Our State Gives Testimony on Bold Solutions for Florida's Property Insurance...

Shield Our State Gives Testimony on Bold Solutions for Florida's Property
Insurance Crisis

Group Supports New Public-Private Partnership; Encourages Legislators to Act
Now

TALLAHASSEE, Fla., March 24 /PRNewswire-USNewswire/ -- The Shield Our State
Coalition announced support today for a proposed Florida House bill that would
pave the way for a new system for better protecting Floridians against
devastating financial losses from hurricanes, noting that the legislation is
an excellent and timely vehicle to solutions that the coalition is advocating.

Dan Montgomery, managing director of the Shield Our State Coalition, offered
his support for House Bill 1157 during a workshop on the bill before the House
Insurance, Business & Financial Affairs Policy Committee.

The legislation, introduced by Rep. Ellyn Bogdanoff, R-Fort Lauderdale, and
co-sponsored by Rep. Priscilla Taylor, D-Riviera Beach, and Rep. John Wood,
R-Haines City, would create a new tax-exempt state fund to house and more
efficiently build up the billions of dollars in hurricane premiums that all
residential insurance policyholders in Florida pay each year. Under the bill,
private insurers would cover the non-hurricane risks on residential insurance
policies, while also handing all policy administration and claims processing
for policyholders.

Montgomery said the Shield Our State Coalition supports the concepts behind
House Bill 1157 as they relate to creating a new public-private partnership to
address the state's hurricane insurance problem. Rep. Bogdanoff has agreed to
meet with the coalition to discuss the similarities in their proposals and to
further explore how Shield Our State's business solutions could become a part
of the House bill, Montgomery added.

Shield Our State is a newly formed, non-profit organization that is advocating
that state legislators consider bold new solutions for solving Florida's
ongoing property insurance crisis.

The coalition is proposing that the state and private insurers form a new
partnership in which the state will manage hurricane insurance for all Florida
homeowners, commercial-residential and small commercial property owners.
Private insurance companies would insure all of the non-hurricane risk on the
properties, administer policies and process claims. Shield Our State's
proposal also calls for the State of Florida to set aside the hurricane
portion of premiums in a new tax-exempt fund, called the Hurricane Insurance
Pool (HIP), which would be administered by the state. This fund would allow
Floridians' hurricane premiums to build up over time and be used solely to pay
for hurricane losses.

"It is crucial for legislators to recognize that Florida needs a bold new
solution to its hurricane insurance problem," Montgomery said. "Florida's
hurricane risk is simply too large for either the state or private insurers to
handle alone. Our proposal would create a new public-private partnership that
combines the best of what the state can do - which is to efficiently build up
all Floridians' hurricane premiums in a tax-exempt fund - with the best of
what private insurers can do, which is to administer policies, pay claims, and
cover more predictable risks like fire, theft and personal liability."

Today, the state-created Citizens Property Insurance Corporation and the
Hurricane Catastrophe Fund are seriously overexposed and are expected to run
out of cash to pay claims if a major hurricane hits. Small, start-up property
insurers, whose financial strength is questioned by independent rating
agencies, may also run out of cash after a major storm. All Floridians face
the threat of paying thousands of dollars in assessments - a "hidden hurricane
tax" - on their home, auto, boat and business policies if Citizens and the Cat
Fund can't pay claims after a hurricane.

By forging a new public-private partnership - such as those envisioned in both
House Bill 1157 and by the Shield Our State Coalition - Floridians will see
their property insurance rates stabilize and even decline over time, the
threat of hidden hurricane taxes on policyholders will be reduced, and major
private property insurers will return to the state to compete for business.

"These proposals for a new public-private partnership deserve serious
consideration," Montgomery said, "because hurricane season is only two and a
half months away, and Floridians are facing financial disaster if a major
hurricane hits us this year or next. We simply must act now - we can't wait
for a disaster to decide what to do next."

Shield Our State is a 501(c)4 organization with the goal of developing bold
new solutions to Florida's impending hurricane financial crisis. Shield Our
State promotes a statewide public-private partnership which would provide
financial security to residential property owners in the event of future
hurricane disasters. To learn more about or join the Shield Our State
Coalition, please visit www.shieldourstate.org.

SOURCE Shield Our State Coalition

Dan Montgomery, 1-888-SOS-4FLA (888-767-4352),
danmontgomery@shieldourstate.org