Bush said Wednesday he envisions a program that would offer reinsurance to back up private insurance companies, rather than a program that would sell insurance directly to businesses. Reinsurance is coverage that insurers have to protect against their own losses from paying claims.
The Republican governor said he has asked Insurance Commissioner Kevin McCarty to bring a plan for a state business insurance pool to next week's meeting of the Cabinet, which would have to approve it.
His proposal came after Senate President Tom Lee and Chief Financial Officer Tom Gallagher suggested resurrecting such a pool, known as the Commercial Joint Underwriting Association. It used to exist in Florida before Hurricane Andrew in 1992, but was disbanded after a lawsuit.
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