On August 19, 2009
Look What Happens When Insurers ‘Run Naked’
Given the uproar at town hall meetings on health care, it’s interesting that Americans seem to be mute on other kinds of government insurance, particularly the type that protects million-dollar beachfront properties. A recent story in ClimateWire says that public insurance programs in several coastal states are “flirting with the notion of saving millions of dollars by shrinking or canceling the coverage they buy from private reinsurers.” In insurance parlance, this is called “running naked,” and it’s about as safe as streaking down the street; someone is either going to call the cops or run you over. So how does it work? States provide insurance for people classified as bad drivers and for coastal area homes where private insurers would…
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