Cabinet hears ideas to shore up Cat fund
The Associated Press
TALLAHASSEE, Fla. — Gov. Charlie Crist and the Florida Cabinet are still looking for ways to help the Florida Hurricane Catastrophe Fund provide backup coverage for insurance companies.
They hope to hear some answers Tuesday.
The "cat" fund could pay roughly $8 billion in claims if needed, but has an exposure of some $20 billion more. Florida taxpayers are on the hook for the difference, though politicians have been trying to persuade Washington for some federal assistance.
The fund was established after Hurricane Andrew in 1992 to raise the money needed to pay claims after a destructive hurricane or several smaller ones.
Last year, the state agreed to pay investor Warren Buffett $224 million for a one-time $4 billion line of credit.