Last week, Florida's Joint Select Committee on Hurricane Insurance met to consider recommendations on the issue of homeowner policy hurricane damage deductibles and to discuss issues related to the Florida Hurricane Catastrophe Fund. The committee consists of 16 members, 8 each from the State Senate and House of Representatives.

William Stander, PCI regional manager, said the Des Plaines, Ill.-based association of more than 1,000 companies is worried the legislature could come up with laws that will make it more difficult for companies to write business in the state.

He said some legislators are seeking to add more controls over premium rates to control pricing. However, he said the only effective way to control pricing is through competition between carriers in the state.

The legislators' concerns, he said, are further fueled by actions of some insurers to not renew some property business or write new business. Some insurers, he continued, need to take these actions to reduce their property exposure.

"We need to ease up on market controls and encourage insurers to come back to the state," he declared.

Some legislators, he said, are suggesting that the state hurricane catastrophe fund be increased to take on more risk and that policy deductible amounts be lowered. Mr. Stander argued that such a fund increase is not an answer and that creating a competitive environment for insurers is the only effective answer.

"I hope they listen to reason," he said, "but we fear that there will be more control over a system that is already laboring under a burden as it is."

On Dec. 21, Florida's Gov. Jeb Bush signed into law legislation that deductibles would apply annually to all hurricane events. The action came in response to the three hurricanes that ripped across the state this past season. Some insurers applied deductibles to individual incidents while others only applied one for the season.

The new law takes effect on new and renewed policies effective May 1.