INDIANAPOLIS (June 9) — The National Association of Mutual Insurance Companies (NAMIC) on Friday asked South Carolina Gov. Mark Sanford, R, to sign legislation designed to address homeowners’ insurance issues in coastal areas of the state. NAMIC sent a letter to the governor, supporting the proposal adopted by the state Legislature this week.
"Thank you for fostering a climate of cooperation and collaboration in the quest to address South Carolina’s coastal insurance concerns," begins the letter to the governor from Liz Reynolds, NAMIC’s state affairs manager for the southeast region. "Your support of the private insurance market as an important partner in efforts to find solutions to coastal insurance availability and affordability is refreshing in this time of insurance industry-bashing and vilification."
The legislation, H. 3820, The Omnibus Coastal Property Insurance Reform Act of 2007, takes a broad approach that makes it more palatable for insurers to provide coverage in areas vulnerable to severe storms. For example, it makes tax credits available to insurers for covering property in the expanded wind pool. It also allows homeowners to create tax-free catastrophic savings accounts similar to health savings accounts that could be used to pay hurricane deductibles and costs associated with retrofitting properties.
Sanford is scheduled to sign the legislation Monday, June 11.
"We appreciate also the many hours of consumer education undertaken by the Department of Insurance to help citizens better understand the risk transfer process and how they, along with government and industry, can play a part in taking responsibility for loss reduction and cost management," Reynolds wrote. "We hope South Carolina’s commitment to a measured, multi-faceted approach with both short- and long-term effects will be a model for other coastal states struggling with these issues."
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Posted: Wednesday, May 09, 2007 12:00:00 AM. Modified: Monday, June 11, 2007 11:09:06 AM.
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