Crunch May Squeeze Cat Fund Payments.

The article reports on the impact of the ongoing credit crisis on preventing Florida Hurricane Catastrophe Fund from selling through tax-exempt bonds in Florida. The Cat Fund, which has an estimated reinsurance capacity of $13.28 billion, could have a potential bonding shortfall of between $10 billion and $15 billion over a 12-month period. The Fund is aimed to pay all the claims it has promised in the form of reinsurance to the state's private property and casualty insurers.