The nation’s lawyers who deal with insurance issues are developing policy recommendations designed to improve access to insurance coverage, reduce litigation over coverage and mitigate future losses involving natural catastrophes.
In several respects, the proposals by the American Bar Association (ABA) are similar to ones backed by the insurance industry.
The lawyers’ recommendations include allowing private insurers to voluntarily broaden coverage for storm damage; putting the federal flood insurance program on a sound actuarial basis; and stronger enforcement of building codes and mitigation efforts.
The bar association also supports imposing federal standards on insurers for handling claims after storms.
The American Bar Association Section of Tort Trial and Insurance Practice has developed the proposals. They are still to be considered by the ABA House of Delegates, the association’s policy-making body. No proposal becomes ABA policy until it is approved by the House of Delegates.
Proposals
Proposals include ones that:
- Aim to broaden the availability of insurance protection for storm damage by eliminating the restrictions on insurance providers. This proposal distinguishes damage caused by wind, wind-driven rain, flood and storm surge from other forms of flood damage, for purposes of making broadened or restrictions on private insurers making broadened coverage available for storm damage, provided the insurers do so on a voluntary basis operating in competitive markets under regulatory systems permitting flexible pricing and product development.
- Implore Congress to enact programs to increase the availability of affordable insurance in areas of high catastrophe exposure as well as improve the federal flood insurance program, without competing with the private insurance market. Additionally the measure urges putting the National Flood Insurance Program on a sound actuarial basis, including requiring purchase of flood insurance with mortgages made by state-chartered financial institutions.
- Seek to ensure available and affordable insurance by mitigating loss from future catastrophes. This proposal urges improved building codes for new construction, and vigorous code enforcement; and adopting land use policies that discourage construction in high risk areas.
- Advocate federal standards for handling residential and small business insurance claims for property damages resulting from hurricanes or storms. It also urges mediation programs before new disasters occur.
Topics Catastrophe Flood
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