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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 267 Introduced in House (IH)]

103d CONGRESS
  2d Session
H. CON. RES. 267

Expressing the sense of the Congress that the Federal Government should 
 develop a comprehensive program regarding natural disasters, require 
    individuals and businesses in disaster prone areas to purchase 
   insurance for natural disasters, and create a Federal reinsurance 
    program to minimize the associated risks to insurance companies.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 19, 1994

 Mr. Burton of Indiana submitted the following concurrent resolution; 
   which was referred to the Committee on Banking, Finance and Urban 
                                Affairs

_______________________________________________________________________

                         CONCURRENT RESOLUTION

 
Expressing the sense of the Congress that the Federal Government should 
 develop a comprehensive program regarding natural disasters, require 
    individuals and businesses in disaster prone areas to purchase 
   insurance for natural disasters, and create a Federal reinsurance 
    program to minimize the associated risks to insurance companies.

Whereas the earthquakes in California on January 17, 1994, caused approximately 
        $20,000,000,000 in damages and cost 61 people their lives;
Whereas the Federal Government is expected to provide $7,700,000,000 in 
        assistance to the victims of the California earthquakes;
Whereas the average American taxpayer has paid $53 to assist the victims of 
        Hurricane Andrew and $39 to assist the victims of Midwestern floods;
Whereas, in the past 5 years, the Congress has spent $23,600,000,000 on relief 
        related to natural disasters;
Whereas only 20 percent of the individuals residing in California or the Midwest 
        have adequate insurance coverage for natural disasters;
Whereas fewer than 1 of every 5 of the 110,000,000 Americans who are at risk of 
        damage from earthquakes, hurricanes, or floods buys private insurance 
        for these natural disasters;
Whereas many individuals who are not insured for natural disasters have not 
        purchased the insurance because of its high price;
Whereas requiring more individuals and businesses in disaster prone areas to 
        purchase insurance would cause the cost of insurance to decrease and 
        would allow more individuals and businesses to obtain affordable 
        insurance for natural disasters;
Whereas insurance companies are reluctant to provide insurance to individuals 
        and businesses in many areas that have previously suffered natural 
        disasters;
Whereas the establishment of a Federal reinsurance program would allow companies 
        to provide insurance coverage for natural disasters to individuals and 
        businesses in these areas;
Whereas a Federal reinsurance program would minimize the financial risk to 
        insurance companies that provide insurance coverage for natural 
        disasters to individuals and businesses in these areas;
Whereas a Federal reinsurance program would greatly reduce the total costs the 
        Federal Government must bear for natural disaster relief and the use of 
        Federal tax dollars for natural disaster relief; and
Whereas the Congress has failed to develop a comprehensive solution to problems 
        concerning insurance for natural disasters: Now, therefore, be it
    Resolved by the House of Representatives (the Senate concurring), 
That it is the sense of the Congress that the Federal Government 
should--
            (1) with assistance from State and local officials, develop 
        and implement a comprehensive program to prevent further 
        exorbitant spending on assistance relating to natural 
        disasters;
            (2) require individuals and businesses in areas that have a 
        high risk of experiencing natural disasters to purchase 
        comprehensive insurance to cover the high cost of damages 
        resulting from natural disasters such as flooding, earthquakes, 
        and hurricanes; and
            (3) create a Federal reinsurance program that would 
        minimize the financial risk incurred by insurance companies 
        that provide insurance in areas that have a high risk of 
        experiencing natural disasters.

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