Rainy Days and Congressmen promises........

Two Florida Congressman are touting a bill to create a national insurance fund to fight soaring homeowner's premiums.

On Friday, after seven months of study and discussion, South Florida Reps. Ron Klein and Tim Mahoney introduced their long-promised bill to create a giant national insurance fund to reduce the soaring costs of homeowner premiums.

The bill, unveiled at a Capitol Hill news conference, would dump federal and state money into an insurance pool to help cover extraordinary claims when a major disaster strikes. Funding, in amounts not yet determined, would come from the federal treasury and from states such as Florida through the sale of bonds to private investors.

To participate, states would have to ensure that private insurance companies pass along savings to homeowners in lower premiums. States that fail to protect their consumers, as determined by leaders of the national fund, would be excluded from the pool.

"Whatever savings accrue, that has to be passed along," said Klein, D-Boca Raton. "If you don't do it, you can't participate."

Klein and Mahoney, D-Palm Beach Gardens, said they were confident the bill would curb premiums by spreading risk and providing a state-federal backup to the private market, which they said would make it possible for companies to offer lower rates.

Some South Florida residents say they like the concept but remain skeptical about attempts to curb rates, given Florida's standoff with insurance companies since creating a similar state fund earlier this year.

Even if one put aside the political unlikelihood such legislation will get through Congress, or signed into law by President Bush, this legislation is not likely to bring much change to homeowner's insurance in Florida. As I have stated before, companies don't have to sell those policies in the Sunshine state. Living in Florida means living with the risk of a catastrophic storm. You can't change mother nature and insurers have to charge those who live in this area appropriately. By the way, where is the money to come for this insurance fund? Higher taxes of course.

Legislators can talk about insurance rates coming down because of some magic legislative, but intelligent people know the reality when it comes to the lost of living in Florida. The only thing coming down is the rain.

Linked to- Morewhat, Stuck on Stupid, The World According to Carl,