Following are legislative developments relating to State catastrophe funds:
S.B. 923 was introduced on February 8, 2010 in the Missouri State Senate. The bill would establish the Missouri Catastrophe Fund to help pay covered residential property damage insurance claims in the aftermath of an earthquake, which affects Missouri homeowners and their property/casualty insurers. The catastrophe fund, which would consist of premiums paid by insurers, bond revenues, and appropriated state funds, would provide a backstop for insurance companies to insure against covered catastrophic losses to avoid the collapse of the property insurance market in the wake of a major earthquake. The bill also would establish an advisory council to provide information and advice with regard to the fund and develop prevention and mitigation standards related to covered losses. If a federal or multistate catastrophic insurance fund or reinsurance program is created, recommendations must be made to the General Assembly as to how the fund can coordinate with such programs.
S.B. 923 was referred on February 11, 2010 to the Small Business, Insurance and Industry Committee of the Missouri State Senate. Earlier this year, a companion bill (H.R. 1468) to S.B. 923 was introduced in the Missouri House of Representatives. No action has been reported with regard to H.B. 1468.
Also, on February 8, 2010, A1983 was introduced in the New Jersey General Assembly to implement the New Jersey Consumer Catastrophe Preparedness and Protection Act through an advisory council. The Act would establish the New Jersey Catastrophe Fund to help pay covered resident property damage insurance claims in the aftermath of a natural disaster or other catastrophe in the State, which affects New Jersey homeowners and their property/casualty insurers. The Act would appropriate from the General Fund $10 million for deposit in the fund. If a federal or multistate catastrophic insurance fund or reinsurance program is created, recommendations must be made to the State legislature as to how to how the fund can coordinate with such programs.