H.R. 91 would establish a program to provide reinsurance for State natural catastrophe insurance programs to help the United States better prepare for and protect its citizens against the ravages of natural catastrophes, it would encourage and promote mitigation and prevention for, and recovery and rebuilding from, such catastrophes, and would better assist in the financial recovery from such catastrophes.
Detailed Summary
Homeowners Insurance Protection Act of 2007 - Instructs the Secretary of the Treasury to establish the National Commission on Catastrophe Preparation and Protection to advise the Secretary regarding estimated loss costs associated with contracts for reinsurance coverage.
Authorizes the Secretary to make homeowners protection coverage available through contracts for reinsurance coverage. Restricts purchase of such coverage to eligible state programs. Prescribes criteria for state eligibility.
Requires each contract for reinsurance coverage to provide insurance coverage against residential property losses to homes, including condominium and cooperative ownership, and the contents of apartment buildings. Cites covered perils.
Prescribes a minimum level of retained losses and maximum federal liability.
Authorizes any insurer who participates in an eligible state program to establish a Catastrophe Capital Reserve Fund to hold funds on the Secretary's behalf to offset reinsurance claims.
Establishes the Consumer Hurricane, Earthquake, Loss Protection (HELP) Fund to: (1) make payments to covered purchasers under contracts for reinsurance coverage for eligible losses; and (2) pay for Commission operating costs and reinsurance program administrative expenses.
Directs the Comptroller General to study the national flood insurance program and hurricane-related flooding.
Status of the Legislation
Latest Major Action: 1/4/2007: Referred to House committee. Status: Referred to the House Committee on Financial Services.
Points in Favor
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Points Against
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Visitor Comments
Jose Borromeo
May 17, 2008, 8:51pm (report abuse)IS THERE ANY LAW THAT WE CAN SELECT OUR OWN HOME INSURANCE?
EMAIL: j.borromeo@hotmail.com
Peedee
June 27, 2008, 9:30am (report abuse)First, look at how the government has handled the FEMA assistance post- Katrina. Ok so we want to formalize this process and have the tax payer's foot the bill?
Why not let the global free market entities who are willing to accept the level of risk allowed to do so (i.e. re companies and CAT bond investors)? This is nothing more than representatives pandering to the insurance lobby since the government will essentially assume all of their risk at minimum cost to them and maximum cost to the taxpayer! Ridiculous.
Shaun
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