The prices all of us pay for insurance in 2002 may be a little higher. Prices were already firming up because insurers' investment returns had been decreasing, and auto and property loss had increased. But this is going to accelerate that process.

Being out of the Gulf, that's icing on the cake. But results that strong show they have the core principles of underwriting claims very well managed.

We have a blue print for how to make a national or state fund work after the success of the Florida catastrophe fund. Commissioners are calling for special sessions in legislature and are hoping that the process will be more seamless than it was in Florida.

There is case after case on the books that have upheld the validity of flood exclusion language, exactly the language Mr. Scruggs is contesting.

A long-term solution is creating a more market-driven terrorism insurance market in the sale of catastrophe risk bonds with some presence of the government backing up insurers.

Regulatory modernization would keep states in charge of regulating insurance, but create a set of federal standards that would eliminate price controls and controls over policy forms.