NAIC Commends Passage Of Homeowners’ Defense Act Of 2007

 

The National Association of Insurance Commissioners issued the following press release regarding this week’s passage of the Homeowners’ Defense Act of 2007 by the United States House of Representatives:

 

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KANSAS CITY, Mo. (Nov. 9, 2007) — The National Association of Insurance Commissioners (NAIC) congratulates the U.S. House of Representatives for passing H.R. 3355, the Homeowners’ Defense Act of 2007.

“This bill is a shining example of where the states can work with the federal government to address a national threat,” said NAIC President and Alabama Insurance Commissioner Walter Bell.

In particular, the NAIC commends U.S. Reps. Ron Klein (D-Fla.) and Tim Mahoney (D-Fla.) for sponsoring the bill which provides several mechanisms to assist state-sponsored programs in addressing the threat of natural catastrophes.

“There are gaps in the coastal insurance marketplace where the private market is unwilling to provide property coverage or where consumers are unable to afford it,” Bell said. “This bill is a tool that allows states to aggressively address that challenge.”

The measure is intended to facilitate the transfer of natural catastrophe risks to the private market and provide medium- and long-term loans, or federal reinsurance, to state insurance programs.

“The insurance and reinsurance markets have a significant amount of capacity. However, for those that live in areas where events can be infrequent yet catastrophic, access to insurance after a significant event is limited, due to availability or affordability. This bill offers states another tool in the toolbox to help fill the gaps,” Bell said.

 

About the NAIC
Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm.

 

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