IV
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 mini-
mize 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 Gov-
ernment should develop a comprehensive program regard-
ing 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 Cali-
fornia earthquakes;
•HCON 267 IH
Whereas the average American taxpayer has paid $53 to as-
sist 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 Cali-
fornia or the Midwest have adequate insurance coverage
for natural disasters;
Whereas fewer than 1 of every 5 of the 110,000,000 Ameri-
cans who are at risk of damage from earthquakes, hurri-
canes, 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 disas-
ter prone areas to purchase insurance would cause the
cost of insurance to decrease and would allow more indi-
viduals and businesses to obtain affordable insurance for
natural disasters;
Whereas insurance companies are reluctant to provide insur-
ance 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 insur-
ance coverage for natural disasters to individuals and
businesses in these areas;
•HCON 267 IH
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 offi-
cials, develop and implement a comprehensive pro-
gram to prevent further exorbitant spending on as-
sistance relating to natural disasters;
(2) require individuals and businesses in areas
that have a high risk of experiencing natural disas-
ters to purchase comprehensive insurance to cover
the high cost of damages resulting from natural dis-
asters such as flooding, earthquakes, and hurricanes;
and
(3) create a Federal reinsurance program that
would minimize the financial risk incurred by insur-
ance companies that provide insurance in areas that
have a high risk of experiencing natural disasters.
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