Senate Bill sb2626

    Florida Senate - 2006        (NP)                      SM 2626

    By Senators Geller and Klein





    31-1330B-06

  1                         Senate Memorial

  2         A memorial to the Congress of the United

  3         States, urging Congress to establish a

  4         Catastrophic Natural Disaster Insurance Fund.

  5  

  6         WHEREAS, the massive devastation wrought by Hurricane

  7  Katrina, Rita, and Wilma in 2005 demonstrated the far-reaching

  8  consequences of catastrophic events and the need for new

  9  legislation establishing federal catastrophic natural disaster

10  insurance, and

11         WHEREAS, a catastrophic natural disaster such as

12  Hurricane Katrina can lead to economic devastation throughout

13  the country, including in many states in which the event did

14  not occur, and

15         WHEREAS, ultimately the United States Government must

16  pay for such catastrophic natural disasters as evidenced by

17  Hurricane Katrina, and

18         WHEREAS, scientists warn than an even more damaging,

19  $100-billion storm is inevitable and predict particularly

20  active hurricane seasons in years to come, and

21         WHEREAS, other recent natural disasters, including

22  wildfires in California and tornadoes and flooding throughout

23  the Midwest, have caused millions of dollars in insured losses

24  and the displacement of thousands of insurance consumers, and

25         WHEREAS, natural hazards, including volcanoes in the

26  Pacific Northwest and Hawaii and earthquakes in the West and

27  along the Midwest's New Madrid fault line, continue to

28  threaten insurance markets and consumers across the nation,

29  and

30         WHEREAS, insurance protection against hurricane damage

31  has been difficult to obtain at reasonable premium rates for

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    Florida Senate - 2006        (NP)                      SM 2626
    31-1330B-06




 1  many residents of the United States and coastal states in

 2  particular, and

 3         WHEREAS, property and casualty insurers are withdrawing

 4  underwriting capacity from the market by refusing to issue new

 5  policies or renew existing policies or by increasing premiums

 6  to unaffordable levels, and

 7         WHEREAS, the unavailability and increasing cost of

 8  homeowners' insurance presents a significant impediment to

 9  home ownership for Floridians, and

10         WHEREAS, the establishment of a Catastrophic Natural

11  Disaster Insurance Fund that pays for damages above a

12  significant, predetermined amount, providing a backstop, would

13  limit uncertainty in insurance underwriting and stabilize the

14  insurance market, thereby increasing the availability and

15  affordability of property and casualty insurance, including

16  homeowners' insurance in the State of Florida, NOW, THEREFORE,

17  

18  Be It Resolved by the Legislature of the State of Florida:

19  

20         That the Congress of the United States of America is

21  urged to enact catastrophic natural disaster insurance

22  legislation, including a Catastrophic Natural Disaster

23  Insurance Fund that does not increase policyholder premiums,

24  and to recognize the time sensitivity of this matter and act

25  in all expediency.

26         BE IT FURTHER RESOLVED that copies of this memorial be

27  dispatched to the President of the United States, to the

28  President of the United States Senate, to the Speaker of the

29  United States House of Representatives, and to each member of

30  the Florida delegation to the United States Congress.

31  

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