In approving several billion dollars in short-term loans to Florida's
hurricane fund, Gov. Charlie Crist stopped long enough to ask the deal
be subject to competitive bidding.

State financial managers assured him it would be.

What they didn't say is that the competitive bids being used are a
year old, from a much smaller financial deal.

A selection panel assembled in an emergency meeting late Wednesday
used competitive responses from 2006 to select underwriters to handle $5
billion or more in floating-rate notes to shore up the Florida Hurricane
Catastrophe Fund. Financing is expected to cost the state $15 million.

The fund's private financial advisor, John Forney of Raymond James,
recommended expanding the list of four money managers used for a $2.8
billion deal last year to include five new firms.

Two of the additions, Bear Stearns and Lehman Brothers, were among
firms engaged in months of discussions with the Forney, the State Board
of Administration and the governor's office, leading up to this week's
Cabinet vote to seek the loans.

There was no need to re-evaluate the 15 firms vying for the state
work, reasoned Forney, "because there is no reason to think evaluation
of those firms now would yield a different result."

What's more, there is not time to seek new bids, Forney said. That,
despite the fact state officials have been weighing the need for Cat
Fund backing since March.

True competition comes into the picture when those underwriters hit
the market and vie to arrange the best deal for the state, said Forney.
"That is how you produce the greatest capacity at the lowest cost," he said.

House and Senate insurance leaders continue to trade ideas on
rescuing Florida's no-fault auto law before it turns into a pumpkin.

The sun sets on Personal Injury Protection on Oct. 1. Gov. Charlie
Crist and legislative leaders have suggested a special session before
then to take up suggested alternatives. The negotiations have fallen to
Senate Banking and Insurance Chairman Bill Posey and House Majority Whip
Ellyn Bogdanoff.

On Wednesday, Posey said he and Bogdanoff have no agreement, but are
"50 percent there" and another week of talking through staff should
bring a conclusion. Senate President Ken Pruitt is willing to wait.
According to Posey, Pruitt this week told the senator to "get it right"
rather than feel pressured by deadlines.

CFO Alex Sink, meanwhile, had the Office of Insurance Regulation help
pull together a clear picture of what the world looks like post-PIP. It
includes more burden the health insurance system to pay bills now
covered automatically under PIP, and a harder time for uninsured
Floridians to get post-accident medical treatment. But Sink stops there,
making no remark on whether to keep, or kill, PIP.

"I was expecting to see a conclusion, but it wasn't there," Posey noted.