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NCOIL Calls for Congressional Study of Natural Disaster Fund

Steven Geller, President of the National Conference of Insurance Legislators (NCOIL), is calling on Congress to authorize a study that would investigate the private market's...
October 13, 2004

Steven Geller, President of the National Conference of Insurance Legislators (NCOIL), is calling on Congress to authorize a study that would investigate the private market's ability to cover natural disaster insurance risks. In a letter to Rep. Brad Sherman (D-California), Geller said the urgency of this issue has never been more apparent, as estimated insured losses from the recent hurricanes climb to more than $20 billion. The study would be undertaken by the Secretary of Treasury. Separately last week, California Insurance Commissioner John Garamendi called for the creation of an insurance policy to cover all natural disasters in the United States. The risk would be spread across a much larger pool of potential claimants, he said, making it more affordable and cost effective. The cost of premiums would vary depending on area and structure risks.