
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, January 20, 1994                   TAG: 9401200102
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: Journal of Commerce
DATELINE:                                 LENGTH: Short

INSURANCE INDUSTRY OFFICIALS, STILL ASSESSING

Insurance industry officials, still assessing the extent of damage from Monday's earthquake, are hoping the disaster will spur Congress to finally pass a national catastrophe program to extend coverage to homeowners in hurricane, earthquake and other storm-prone areas.

Interest in the measure "was building anyway" in Congress ever since 1992's spate of natural disasters including hurricanes Andrew and Iniki, said Jack Weber, executive director of the Natural Disaster Coalition in Washington, D.C. The coalition represents consumer groups, emergency response managers, property/casualty insurance companies, agents and reinsurance companies.

The bill, the National Disaster Act, sponsored by Sen. Daniel Inouye, D-Hawaii, is scheduled for discussion Jan. 26 by the House Public Works and Transportation Committee, he said.

Insurers selling insurance coverage in catastrophe-prone areas would be "cushioned" in the event of a disaster by a National Disaster Reinsurance Fund. Payments would be triggered by catastrophic events that cost the industry more than 15 percent of surplus, or $25 billion. Individual insurance companies can dip into the fund if a disaster reduces their surplus by 20 percent.

Insurance companies would pay into the reinsurance fund premiums set by the Federal Emergency Management Agency in Washington, which will also administer the fund.

by CNB