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"When a once-in-a-lifetime disaster strikes, whole communities are lost, and people want to begin to rebuild - and they want to rebuild quickly," said Ross. "Unfortunately, rebuilding is further hampered when insurance costs skyrocket after these tragedies. This is what we saw in
- The Homeowners' Insurance Protection Act establishes a federal fund to provide relief for catastrophic (once-in-200-year-storms or higher) losses caused by natural disasters.
- States that have established funds to cover catastrophic natural disasters on a smaller scale would have the option of buying reinsurance from the federal catastrophe fund. The provisions in the bill are not mandatory.
- Money in these funds would cover insured losses only. This is not a bailout, slush fund, or other funds set aside for future expenses.
- To participate, states are required to establish state reinsurance catastrophe funds, and payments from the federal catastrophe fund would be made directly to qualifying state funds, not insurers.
- Ross's bill contains many provisions that passed the
Read this original document at: http://dennisross.house.gov/news/documentsingle.aspx?DocumentID=316723
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