In 2009 the State Farm Insurance Company withdrew from writing homeowners insurance policies in Florida, claiming that
Question:
a. Explain the economic perspective on this issue, covering points on both sides (state insurance regulator and insurance company).
b. Explain what impact the Florida Windstorm Mitigation Discount Program might have had. That program was a state-mandated program requiring all insurers to double insurance premium discounts for homeowners who shored up their homes against hurricane potential hurricane damage.
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a An insurance regulator cannot force an insurance company to provide coverage a...View the full answer
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