Scott Supports Shrinking Hurricane Fund

TALLAHASSEE, Fla. (AP) — Gov. Rick Scott says he supports a proposal to shrink Florida’s hurricane insurance backup fund, although that would raise consumers’ premiums.

Scott on Tuesday also said he believes there’s no need to abolish the state’s fraud-ridden, no-fault automobile insurance system.

The governor said he’s confident lawmakers will find a way to root out fraud in the mandatory Personal Injury Protection, or PIP, coverage.

Scott and the Florida Cabinet took no action after receiving a proposal for down-sizing the $18.4 billion Florida Hurricane Catastrophe Fund to eliminate a potential $3.2 billion shortfall.

Scott later, though, said he supported the idea. He said the state cannot find investors willing and able to buy bonds that would have to be sold to cover the shortfall.

Source: Associated Press