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Senate Natural Disaster Bill Introduced

On September 11, Senator Lindsey Graham (R-South Carolina) introduced S. 1607, the Homeowners Insurance Availability Act. The legislation is a companion bill to H.R. 1552,...
September 23, 2003

On September 11, Senator Lindsey Graham (R-South Carolina) introduced S. 1607, the Homeowners Insurance Availability Act. The legislation is a companion bill to H.R. 1552, the Homeowners Insurance Availability Act, introduced by Representative Dave Weldon (R-Florida).

The senate legislation is basically a disaster reinsurance bill. S.1607 would establish a federal program to provide increased access to reinsurance for homeowner underwriters. The Treasury Department would be tasked with establishing the program and would sell reinsurance contracts to companies and reinsurers via auction.

What it Means to Agents:  PIA supports federal natural disaster legislation that accomplishes the dual goals of opening markets in under-served communities as well as ensuring the solvency of insurance companies in the event of a catastrophic natural disaster. In general, PIA believes successful natural disaster legislation should include the following principles:

  • Support the availability, affordability and stability of property insurance in CAT prone areas;
  • Cover residential and commercial losses;
  • Not interfere with rights of states to regulate the insurance industry;
  • Not compete with private sector capacity to provide insurance.
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