Washington is one step closer to allowing the creation of a flood insurance joint underwriting association (JUA), a publicly sponsored, temporary, not-for-profit insurer of last resort to provide insurance when certain types of coverage become unavailable on the open market. The state Senate recently passed legislation that would allow the Insurance Commissioner to establish a JUA if necessary to insure property and businesses at risk from floods arising from the failure of a dam on the Green river.
Concerns about potential flooding below Washington’s Howard Hanson Dam have made it difficult for some businesses to find needed flood coverage in the Green River Valley, according to state Insurance Commissioner Mike Kreidler.
According to the city of Kent, the Green River Valley industrial center is the second-largest wholesale distribution center on the West Coast, with gross business income of nearly $22 billion in 2007. The area is home to hundreds of businesses employing tens of thousands of people, the commissioner said, which is why he proposed the JUA legislation, SB 6240.
“I’m fully convinced, from every evidence that I have, that there is not an adequate market out there for the Green River Valley,” Kreidler said.
Washington lawmakers have previously authorized the organization of joint underwriting associations for liability insurance for midwives and day care centers. Only the JUA for midwives is in operation.
“This is temporary crisis,” Kreidler said. “This is a measured response to this crisis.”
The House companion bill, HB 2560, passed the bill to the Rules Committee for a second reading.
Topics Legislation Flood Washington
Was this article valuable?
Here are more articles you may enjoy.
Wall Street Pushes Back After Activists Escalate Protests 
Allstate Seeking 34% Rate Hike on California Homeowners Insurance 
The Battle Over J&J’s Bankruptcy Plan to End Talc Lawsuits 
AIG Files Amended Suit Against Former Execs, Dellwood Insurance 
