Bush Opposes National Disaster Fund, Saying it Would Hurt Insurance Companies
QuestionGirl April 12th, 2007 - 10:18 amOh those poor poor insurance companies!!! As always, this administration is all about big money.
WASHINGTON · Despite pleas for help from Gov. Charlie Crist, the Bush administration on Wednesday bluntly opposed creation of a national catastrophe insurance fund to rein in homeowner premiums, saying federal intrusion would disrupt the private market and burden taxpayers.
State or federal attempts to limit consumer costs are “well intended but have the side effect of undermining the private market,” Edward Lazear, chairman of the president’s Council of Economic Advisers, told the Senate Banking Committee.
The administration’s resistance delivered a significant setback to prospects for a national fund, just when Florida backers were gaining momentum in Congress. Undeterred, they plan to continue forming legislation over the next few weeks.
Testifying before the Banking Committee, Crist lashed out at the insurance industry on Wednesday — citing estimated profits of $60 billion last year — while urging support for a national fund to spread risk and make premiums affordable in storm-prone areas.
More at the Sun Sentinel
