Homeowners’ Defense Act Of 2007: Joint Subcommittee Hearing Report

On Thursday, September 6, 2007, the House Subcommittee on Housing and Community Opportunity, along with the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, held a hearing on H.R. 3355, otherwise known as the Homeowners’ Defense Act of 2007.

H.R. 3355 was introduced by Representative Ron Klein (D-FL) and Representative Tim Mahoney (D-FL) on August 3, 2007. The bill aims to address the growing crisis in the availability and affordability of homeowners’ insurance coverage for catastrophic events. To view the full text of the bill, please click here.

Committee Members gave the bill mixed reviews. Some Democrats spoke favorably, while also suggesting revisions. Most Republicans did not favor the bill, noting that there are other similar and better bills in committee.

Since there were no votes at this hearing, H.R. 3355 is scheduled to be marked up on September 18, 2007.

To view written testimony from the various hearing panelists, click on their names below. Testimony from Steve Spiro is attached, along with revised testimony from John Seo.

Panel One

Panel Two

• Mr. Danyal Ozizmir, Head of Asset Back Securities-Insurance Linked Securities, Swiss Re Financial Products Corporation
• Mr. John Seo, Co-founder and Managing Member, Fermat Capital Management, LLC
• Mr. Franklin Nutter, President, The Reinsurance Association of America
• Mr. Vince Malta, Malta & Co., Inc., on behalf of the National Association of Realtors
• Mr. Robert Joyce, Chairman and Chief Executive Officer, The Westfield Group, on behalf of the Property Casualty Insurance Association of America
• Mr. Steve Spiro, CLU, ChFC, Spiro Risk Management, Inc., on behalf of the Independent Insurance Agents of America
• Mr. John D. Echeverria, Executive Director, Georgetown Environmental Law & Policy Institute, Georgetown University Law Center

Available Member Statements: Chairman Kanjorski, Congressman Mahoney, Congresswoman Maloney

 

To read news coverage of the hearing, click on the headline below:

Catastrophe fund sparks conflict

South Florida members of Congress pick up some support for a national catastrophe fund but face opposition from the White House.

WASHINGTON — A Florida-led bid to trim homeowners’ insurance premiums by creating a national risk pool met with staunch opposition Thursday from the Bush administration and lawmakers from states who said they oppose subsidizing a beachfront lifestyle.

 

The above information is intended to be a general summary of the hearing and is not intended to provide specific analysis. Should you have any questions or comments regarding this information, please feel free to contact this office.