The Florida Legislature took courageous votes during the 2009 session to raise Citizens Property Insurance Corp. rates to better position the government-run insurer to be able to pay its claims on time and to reduce the potential for statewide surcharges following a major hurricane.

Citizens' rates will rise for the first time in three years, but under a 10 percent cap. Another politically tough position was to roll back Florida Hurricane Catastrophe Fund (Cat Fund) coverage to make the program financially sound once more. Private insurers are authorized to replace Cat Fund layers being eliminated with more expensive private reinsurance, so their rates will go up, but also under a 10 percent cap.

Insurance is one of the most far-reaching and politically difficult issues faced by the Legislature each year and like most issues in this group, final decisions usually come during the last week, even the last day. This year was true to form. The Citizens/Cat Fund package (HB 1495), approved in the final hours, allows Citizens' rates to begin to move to an actuarially sound level, capped at 10 percent a year. It cuts $2 billion from the Cat Fund's Temporary Increase in Coverage Limit (TICL) layer this year and establishes a plan to drawn down TICL completely after the 2013 hurricane season, returning this coverage to the private reinsurance market.