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Taxpayers May Face Hurricane Tab
I see this as flawed, except perhaps to protect existing homes until they no longer habitable. I don't want to see people building in risky areas simply because cheaper-than-indicated insurance is available. The economy would lose useful productivity to increased rebuilding efforts (which in a perfect world should never be necessary). Seems like just another thinly veiled Dem attempt to buy votes.
As hurricane season begins, Democrats in Congress want to nationalize a chunk of the insurance business that covers major storm-damage claims.

The proposal -- backed by giant insurers Allstate Corp. and State Farm Mutual Automobile Insurance Co., as well as Florida lawmakers -- focuses on "reinsurance," the policies bought by insurers themselves to protect against catastrophic losses. The proposal envisions a taxpayer-financed reinsurance program covering all 50 states, which would essentially backstop the giant insurers in case of disaster.
This would prevent encrusted lawyers and corrupt politicans in, say, Mississippi, from violating the law, the courts and plain commen sense to seize money from insurers and distribute amongst their friends. No wonder they support it.
The program could save homeowners roughly $500 apiece in annual premiums in Florida, according to an advocacy group backed by Allstate and State Farm, the largest writers of property insurance in the U.S.
Posted by: gorb 2008-06-02
http://www.rantburg.com/poparticle.php?ID=240686