The submit, “Can Donald Trump Repair Florida’s Insurance coverage Issues? Can the Federal Authorities or the President Repair State Insurance coverage Issues?” resulted in two readers forwarding related data suggesting extra the explanation why Patronis is asking for Trump’s assist and Patronis’ name to dissemble federal authorities consideration about Florida’s insurance coverage market.
One article, Whitehouse Presses Residents Property Insurance coverage for Solutions about Firm’s Solvency, famous partially:
Senate Price range Committee Chairman Sheldon Whitehouse (D-RI) despatched a letter on Monday to Residents Property Insurance coverage Company renewing all requests for data and paperwork set out within the Committee’s November letter associated to the corporate’s plans to handle elevated underwriting losses from climate-related excessive climate occasions and different disasters. The letter follows new feedback from Florida Governor Ron DeSantis to CNBC that Residents ‘shouldn’t be solvent,’ an announcement that additionally seems at odds with claims Residents has made to the Committee.
In November, the Committee launched an investigation into Residents amid rising issues in regards to the insurer’s long-term solvency and doable requests for a federal bailout ought to losses exceed the corporate’s capacity to pay. Florida is on the frontline of local weather danger, and because the state-backed insurer of final resort, Residents faces doubtlessly catastrophic publicity to climate-related property losses.
Residents has not adequately addressed the Committee’s questions and has ignored repeated makes an attempt at comply with up. In a non-responsive letter dated December 15, Residents’ President/CEO and Govt Director Tim Cerio referred to a Florida regulation enabling the corporate to levy particular assessments on all policyholders as a foundation for its solvency. However because the Committee said in its preliminary letter, as a result of ‘it could be each politically and economically unfeasible for Residents to aim to recoup tens of billions of {dollars} in losses from Florida policyholders, the Committee stays involved that Residents and the state of Florida would flip to the federal authorities for a bailout.’ Residents’ December letter didn’t handle this concern or substantively reply to the Committee’s requests for data.
The opposite information report, ‘Swirling within the drain’: Senate Price range Committee Breaks Down Florida’s Insurance coverage Market, was about this federal investigation that criticized and delivered to gentle the poor insurance coverage market in Florida. This information report most likely upset Patronis, resulting in the decision to Trump for assist:
Lawmakers on the Senate Price range Committee held a listening to trying on the rising prices of house insurance coverage in Florida and past and the way components, like inflation and local weather change, might proceed to shake the unsteady market and impression the economic system nationwide.
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‘What occurs when insurance coverage corporations go bust or don’t renew insurance policies or pull totally out of a state, households lose insurance coverage, they will’t discover a first rate coverage. They’ll’t afford what’s accessible. Some even pack up and transfer away. Some ended up with state-backed insurers of final resort, which can or will not be solvent,’ added Whitehouse, who earlier this yr launched a probe into the state-backed Residents Property Insurance coverage.
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Whereas Republican committee members agreed that, ‘Florida’s insurance coverage market is totally screwed up,’ as Senator Ron Johnson, R-Wisconsin put it, easy methods to handle the unaffordability of insurance coverage so it’s not a burden on taxpayers is the place events differ.
Johnson added it’s not local weather change, however federal spending and inflation as the principle components driving up the prices.
I admire our readers sending us extra data to make this weblog extra correct. The latest media publicity in regards to the poor-performing Florida insurance coverage market definitely would appear to be a causal issue for Patronis to ask for Trump’s assist.
I’ve by no means recognized Donald Trump to be an insurance coverage professional apart from his noting how poorly the insurance coverage business pays claims and the way Florida’s Republican politicians are promoting out to insurance coverage lobbyists, as famous in Donald Trump and Chip Merlin Agree—Ron DeSantis and Florida Republican Management Have Offered Out to Insurance coverage Firm Lobbyists. I quoted Trump:
Along with wanting to chop Social Safety (and lift the minimal age to a minimum of 70) & MediCare, RINO Ron DeSanctimonious is delivering the most important insurance coverage firm BAILOUT to Globalist Insurance coverage Firms, IN HISTORY. He’s additionally crushed Florida owners whose homes had been destroyed within the Hurricane – They’re getting pennies on the greenback. His Insurance coverage Commissioner does NOTHING, whereas Florida’s lives are ruined. That is the worst Insurance coverage Rip-off in the whole Nation!
Perhaps Trump may also work on making insurance coverage corporations pay reliable claims since Florida’s politicians appear to be doing the alternative.