Tuesday, January 11, 2011

Sinkholes - start from scratch, says former Senator Locke Burt to the Senate

Insurance executive and former Senator Locke Burt made a powerful presentation about sinkholes to a Florida Senate committee this week.  Burt recommended that the Legislature rewrite the sinkhole insurance laws from scratch, rather than just tinkering and tweaking.

Burt, who is president and CEO of Florida-based Security First Insurance Company, was an exemplary representative of the insurance industry, especially given his credibility as a former member of the Florida Senate.  He candidly laid out strategies that carriers have followed in reducing their sinkhole exposure, including: to stop writing in sinkhole territories, to raise rates to discourage purchase of the coverage, to inspect properties in the territories, and to withdraw from the state entirely.

Slides of Burt's presentation "What's wrong with this picture" are available from this link:
Locke Burt's Sinkhole Presentation to Senate Banking and Insurance Committee, January 2011

Perry Cone practices insurance, compliance and government law, and provides consulting to in-house counsel, from the Tallahassee office of GrayRobinson.  He writes from his perspective as a former general counsel, executive, and leader in the Florida insurance industry.  Visit Perry's blog at www.tallyinslaw.com/

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