Senator Hillary Rodham Clinton and Senator Bill Nelson
of Florida have joined together to introduce a bill that would pool
federal and state resources to manage the costs of major disasters and
cover the greatest damages that happen during catastrophes. Clinton’s
support of this bill brings national attention to the issue of the ever
increasing cost of insuring structures damaged during hurricanes,
wildfires or other unforeseen natural disasters.
Hillary had expressed an interest in this issue long before the
latest catastrophic fires swept through Southern California. The fund
would pull money from the federal treasury and participating states
like hurricane prone locations like Florida, Mississippi, Alabama or
areas susceptible to wildfire damage like California. This fund would
be funded by the sale of bonds which would help to cover the majority
of the major disasters that occur annually. This fund would allow
private insurers to offer more affordable homeowners insurance to residents who have been hit by the tremendous rate increases.
The House Democrats are firmly behind a similar bill but the Senate
is taking a wait and see attitude. The Senate is considering the
creation of a commission to study the issue. The bill has many hurdles
to face before it can become law, President Bush is expected to veto
the bill.
It is thought that it may take the new president to pass the bill.
Republican Mitt Romney has also expressed interest in a national
insurance pool.
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