Heartland Fellows Offer Praise, Advice For Gov. Scott: Cut the Hidden Hurricane Tax

Published November 22, 2010

TALLAHASSEE — Staffers at the Heartland Institute offered praise and advice for Gov.-Elect Rick Scott (R) following his first major post-election address.
Heartland Senior Fellow Don Brown, a former legislator and chair of the state’s Insurance Committee:
“I was particularly pleased to hear Gov.-elect Scott’s views on over-regulation. When government over-taxes you, it is not difficult to figure out who did it. But when government over-regulates, it is difficult to figure out who did it to you, it is difficult to quantify the cost, and it is difficult to figure out how to get the problem corrected.”
Brown added that insurance regulation should be a particular focus of the new governor.
“Not only has over-regulation of the homeowners’ insurance market produced the hidden hurricane tax — the potential of assessments from the Florida Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund — it also distorts the market, increases moral hazard, and creates a situation which will inevitably require begging for a Washington bail out,” Brown said. “Things need to change and Gov. Scott seems to realize that.”
Eli Lehrer, the National Director of Heartland’s Center on Finance, Insurance and Real Estate:
“It’s a matter of public record that I supported Rick Scott’s opponent for governor. But, if first impressions are any guide, Florida’s new governor is surely on the right path.
“If the state is to avoid financial catastrophe, it’s going to need bold, new thinking on insurance issues and Gov. Scott seems to indicate that he’ll provide the fix Floridians need. He needs to make shrinking the Florida Citizens Property Insurance Corporation and Florida Hurricane Catastrophe Fund top priorities in January.”
For additional comments, contact Don Brown at [email protected] or 850/865-9280, and Eli Lehrer at [email protected] or 202/615-0586.
The Heartland Institute is a 26-year-old national nonprofit research and education organization. Based in Chicago, it is not affiliated with any political party, business, or foundation.