The Real Deal Miami

Bill to allow disaster pool for Florida, other states heads to House

April 27, 2010 10:48PM

The House Financial Services approved a bill yesterday that would allow
Florida and several states to form a national catastrophe insurance
pool. The bill, sponsored by Boca Raton Democrat Ron Klein, could have
a better chance of passage because of stronger White House support than
in an earlier effort to pass the bill, when it died in the Senate. The
bill aims to let states put their funds together and distribute the
risk of catastrophes, and then finance them by selling bonds and
reinsurance contracts to investors. The bill was first launched after a
series of hurricanes in 2004 and 2005. [Sun Sentinel]