The Real Deal Miami

Federal catastrophe bill introduced

May 27, 2009 09:54AM

On the brink of hurricane season, U.S. Rep. Ron Klein, Democrat of Florida, wants to set up federal emergency funding for state-based catastrophe
plans that he says would lower homeowner insurance premiums. The Homeowners
Defense Act must be approved by both houses of Congress; an earlier attempt
during the Bush Administration failed. The bill is opposed by the American
Insurance Association, which claims it would put the government in the
insurance business. The National Association of Insurance Commissioners
supports the bill.