New state-based approaches to catastrophe insurance
20.05.12
Earlier this year, the Jingoistic Conference of Insurance Legislators – a nonprofit association that gathers state lawmakers who sit on insurance committees in their various legislatures – chose to tolerate their 17-year-old National Disaster Catastrophe Fund Model Act to
sunset, rather than renewing it for use in the states’ 2012 legislative sessions. A token of the post-Andrew, post-Northridge era of catastrophe insurance madness, the model had outlived its usefulness and the one extant state of affairs cat fund, the Florida Hurricane Catastrophe Fund, is hardly a “model” that any other state should palm off on to replicate.
Nonetheless, there remain issues of both affordability and availability of property insurance with which many catastrophe-prone states must seize, and it’s understandable that lawmakers in these areas should wish to be seen as doing SOMETHING to address those issues. And so, NCOIL’s Mark and Casualty Committee is seeking input from a variety of parties, all in hopes of crafting a new and better-informed advance to natural disaster issues that states could take.
Source: Out Of The Storm News