Legislation introduced in the Senate on July 29, which would split the difference on "wind vs. water" claims after a hurricane, appears to be generating little support within the P&C insurance industry.
Moreover, Rep. Gene Taylor, D-Miss., also doesn't appear to be accepting the legislation as an alternative to his House bill that would add windstorm coverage to the National Flood Insurance Program (NFIP).
The Senate legislation was introduced by Sen. Roger Wicker, R-Miss. Under the bill, should a "wind vs. water" claim arise with no agreement on how to divide the claim, then the policyholder would immediately receive 50 percent of the claim payout from the NFIP and 50 percent from the wind insurer — either a private insurer or state wind pool. The claim would then go to an arbitration panel to settle the differences between the NFIP and the wind insurer.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
