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Obama Backs National Cat Fund, McCain Opposes

Democratic presidential candidate Barack Obama has endorsed the concept of a proposed national catastrophe fund. In an interview with the Palm Beach Post, Sen. Obama...
June 3, 2008

Democratic presidential candidate Barack Obama has endorsed the concept of a proposed national catastrophe fund. In an interview with the Palm Beach Post, Sen. Obama added that such a fund must not encourage risky development.

"I think that we need a national catastrophe fund," Sen. Obama said. "The key is to make sure that it's run efficiently, that it's adequately funded, and that we build in smart incentives to assure that developers are mitigating risk when they're making decisions on where to locate homes or businesses."  Sen. Obama referred to legislation passed by the House to implement a national catastrophe fund as a "good start." The legislation, the Homeowners Defense Act (HR 3355), is currently awaiting action by the Senate Banking Committee. The other Democratic presidential candidate, Sen. Hillary Clinton, is a co-sponsor of H.R. 3355.

Meanwhile, Republican presidential candidate John McCain takes an opposing view. Speaking in Florida earlier this year, the Arizona senator said, "I believe that this nation and federal government has an obligation to help out in any tragedy or natural disaster… But I do not support a national catastrophic insurance policy." See a video clip of McCain discussing the issue here.

Obama Backs National Cat Fund (National Underwriter 5/23/08)

McCain Talks About Natural Catastrophe Policy (Miami Herald video 1/21/08)