FOR IMMEDIATE RELEASE

NAIC TESTIFIES BEFORE CONGRESS
ON THE THREAT OF NATURAL DISASTERS

WASHINGTON, D.C. (Sept. 6, 2007) - Speaking today on behalf of the National Association of Insurance Commissioners (NAIC), Hawaii Insurance Commissioner J.P. Schmidt testified before a joint hearing of two key subcommittees of the U.S. House of Representatives on legislation that would address the availability and affordability of homeowners insurance.

Commissioner Schmidt commended the Subcommittees on Housing and Community Opportunity and Capital Markets, Insurance, and Government Sponsored Enterprises for holding the hearing and examining this important issue. He also thanked Representatives Ron Klein (D-FL) and Tim Mahoney (D-FL) for their efforts addressing this subject with their bill, the Homeowner's Defense Act of 2007 (H.R.3355).

"States continue to consider and implement solutions to manage the variety of natural catastrophes they face, and several proposals have been introduced in Congress in recent years to address the issue," Schmidt stated. "Representatives Klein and Mahoney have put forward a bill that appears to build on those efforts, so we commend them for their leadership on the issue, and for recognizing the important role states play in managing the threat of natural disasters."

The legislation proposes voluntary, state-sponsored insurance funds to pool their catastrophe risk, then transfers that risk to private markets through the use of catastrophe bonds and reinsurance contracts. It also provides for liquidity loans to participating states in the event of significant financial loss after a natural catastrophe.

"Natural disasters take a heavy economic and emotional toll on Americans across the country each year. The economic impact of natural disasters does not recognize state boundaries and may affect several states or even the economy of the nation as a whole," said Schmidt. "We look forward to working with Congress to arrive at a viable solution to the natural catastrophe threat."

Click here for testimony.

About the NAIC

Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC's overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm.

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