Updated at 4:46 p.m., Wednesday, September 5, 2007
Hawai'i in favor of congressional bill on catastrophes
Advertiser Staff
The state of Hawai'i is in favor of a congressional bill creating a national risk pool enabling participating states to share in the financial risk of recovering from catastrophic events such as hurricanes.State Insurance Commissioner J.P. Schmidt is scheduled to testify before a congressional panel tomorrow on a bill that would establish a process for states to voluntarily pool their catastrophe risks and sell bonds.
It would also authorize the Secretary of the Treasury to make liquidity loans to qualified reinsurance programs after a natural disaster.
Schmidt has been selected to testify on behalf of state insurance regulators by the National Association of Insurance Commissioners.
Hawai'i is in favor of such as measure as spreading the risk over a broader base generally lowers the cost of premiums.
"My administration is in full support of initiatives to ensure Hawai'i has access to the resources necessary to cope with disasters including natural catastrophes such as hurricanes or tsunami," said Governor Linda Lingle, in a press statement.
In 2006, Lingle signed a law allowing Hawai`i to become a member of the Emergency Management Assistance Compact. Compact members provide mutual assistance between states in managing any emergency or disaster that is declared by the governor of a member state.
