Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, August 5, 1993 TAG: 9308050009
SECTION: NATIONAL/INTERNATIONAL PAGE: A-5 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
A key element of the proposal is creation of a new federal trust fund, to give insurers a needed cushion if a huge disaster strikes and to enable them to provide homeowners insurance in high-risk areas.
At a news conference, the bipartisan sponsors of the Natural Disaster Protection Act said the superfund would be created through contributions of private insurance companies, with no cost to the federal government.
"This legislation responds to the unprecedented losses caused by recent catastrophic disasters," said Sen. Daniel Inouye., D-Hawaii., whose home state was hit last year by Hurricane Iniki. Inouye was joined by six other senators, including three Republicans, as Senate co-sponsors. Rep. Norman Mineta, D-Calif., headed a House group sponsoring the plan.
Inouye said new studies show that a class 5 hurricane striking Miami would cause $53 billion in insured losses.
An earthquake measuring 8.2 on the Richter scale would cause $84.4 billion in insured losses in Los Angeles, he said.
Inouye said the bill appears to have broad bipartisan support and predicted that it could become law by early next year.
"We're trying to step up and accept the obvious, that disasters happen and that they happen with great regularity," said Sen. Chris Dodd, D-Conn.
"All we're trying to do here is to minimize that certainty."
The legislation is the product of months of work by a national coalition of insurance representatives, state emergency managers, Realtors, lenders, senior citizen and homeowner and consumer groups.
by CNB