You are here:HomeIssuesNatural Disaster2005New Catastrophe Reinsurance Bill Introduced in House

New Catastrophe Reinsurance Bill Introduced in House

A bill designed to encourage insurers to write in disaster-prone areas through a federal reinsurance program has been introduced in the House. Representative Ginny Brown...
March 1, 2005

A bill designed to encourage insurers to write in disaster-prone areas through a federal reinsurance program has been introduced in the House. Representative Ginny Brown Waite (R-Florida) introduced the Homeowners' Insurance Availability Act of 2005 (H.R. 846) on February 17. It is similar to previous legislation that has failed to gain approval. Under the bill, the U.S. Treasury Department would establish regional auctions in which both private insurers and reinsurers could buy reinsurance from the government at actuarial rates, with the book of exposures then resold in the open market.

Under the proposed legislation, the federal government would only step in if a disaster was equal to or greater than a one-in-100-year event.

Rep. Brown-Waite Introduces H.R. 846 (Press release 2/17/05) 

What It Means to Agents:  PIA National believes that both federal and state funding and reserving to form a coordinated pool for natural disasters needs to be developed, and that it must also include the private sector. In December, PIA National submitted written comments to both the National Association of Insurance Commissioners (NAIC) and the National Council of Insurance Legislators (NCOIL) during their winter meetings.

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