The Florida Hurricane Catastrophe Fund should have $17 billionavailable for this Atlantic hurricane season thanks to a lack ofhurricanes hitting the state in the past 10 years, reports the Florida Times-Union.
|"The money is there and it's in our pocket," Jack Nicholson, CEOof the Cat Fund, told the Florida Times-Union.
|Twice a year Florida relies on Wall Street firms and financialadvisers to calculate how much money the fund needs, and how muchit could borrow in the event of a catastrophic storm. Earlyestimates showed the fund could meet its maximum claims withouthaving to borrow any additional money, says the FloridaTimes-Union. Florida officials disagree.
|Last month Gov. Rick Scott and three elected members of theCabinet approved the purchase of $1 billion of reinsurance for theCat Fund. Critics have opposed the plan, calling it "wasteful" andsaying it could drive up homeowner rates.
|"We do not need to buy that reinsurance," Rep. Frank Artiles, aMiami Republican and insurance public adjuster, told the FloridaTimes-Union. "You have more than enough money to survive aHurricane Andrew [type] hit."
|Florida created the Fund after the onslaught of Hurricane Andrewin 1992 to help keep private insurers from leaving the state. TheFund offers insurance companies backup coverage at prices lowerthan those in the private market.
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