Volume 3 Number 21
May 22, 2006

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CFO Tom Gallagher and
Governor Jeb Bush

CFO Gallagher and Senate
President Tom Lee

 

 


Lt. Gov. Jennings, CFO Gallagher, Sen. J.D. Alexander and Sen. Pres Tom Lee at the signing.

INSURANCE RELIEF BILL STEP IN RIGHT DIRECTION

$1.2 billion set aside to help reduce premiums, hurricane-proof homes

After two years of intense lobbying by Florida Chief Financial Officer Tom Gallagher and other consumer advocates, the Florida Legislature this year approved $1.2 billion to help ease the impact of rising property insurance rates caused by two unprecedented hurricane seasons.

Tom Gallagher, Florida’s chief financial officer, issued the following statement after Governor Jeb Bush signed the legislation into law:

“The Legislature was given a very complex and difficult task. After eight hurricanes inflicting $30 billion of insured losses, there were no easy solutions,” said Gallagher. “The bi-partisan legislation is a step in the right direction, and it accomplishes two goals that I have been fighting for since 2004. First, we’re giving a billion dollars back in tax relief to help Floridians deal with rising insurance costs and prepare for future storms.
Second, the new law will help stabilize the market by attracting new companies and offer alternatives to the insurer of last resort.\

“Our priority must now be preparing Floridians for the upcoming storm season. All the changes made to our insurance market will mean little if Floridians don’t take the time to prepare.

“To help Floridians prepare for storms, my goal is to get the hurricane damage mitigation program started as quickly as possible. It will be a massive undertaking but it is an unprecedented opportunity to help thousands of Floridians get their homes hurricane-ready and save money on their insurance premiums.”

The property insurance bill signed by Governor Bush today was sponsored by Sen. Rudy Garcia and Rep. Dennis Ross. It includes $715 million in insurance rate relief for Florida’s property owners and $250 million to help Floridians strengthen their homes to better withstand hurricanes. It also institutes important reforms at Citizens Property Insurance Corporation, including a $1 million cap on properties it covers, and requires uniform building codes to be implemented statewide.


CFO Gallagher and House
Speaker Allan Bense.