Best's Review Survey: More Respondents Oppose Federal Catastrophe Backstop.OLDWICK, N.J. -- Many members of the insurance community voted "no" to a proposed federal catastrophe backstop, saying it would be "detrimental" to the industry and encourage continued development in risk-prone areas, in a recent survey conducted by Best's Review. Respondents to the survey included online subscribers and visitors to the magazine's Web site at www.bestreview.com. Yet if a backstop were created, most respondents said they'd want a coverage trigger of $100 billion. While the greatest number of respondents, at 46.7%, said they would not support the creation of a national fund to backstop major natural disasters along the lines of Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , or the San Francisco Earthquake San Francisco earthquakedisaster claiming many lives and most of city (1906). [Am. Hist.: Jameson, 443–444] See : Disaster and Fire of 1906, another 41.6% said they'd like such a fund. Supporters reasoned a fund would allow for planning before a disaster, expand coverage in Florida and other areas with an availability crisis and help ensure the solvency of the industry. But the "no's" were prevalentCoeven when asked for possible advantages, many respondents simply stated: "There are none." If a federal backstop were created, some respondents said it would allow them to write new business in coastal areas and states where they do not normally write, perhaps Florida, but it also would force noncoastal and low-risk homeowners to subsidize sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. homes for those in high-risk areas. While respondents from states in the tornado belt balked balk v. balked, balk·ing, balks v.intr. 1. To stop short and refuse to go on: The horse balked at the jump. 2. at subsidizing coastal states The U.S. Coastal states are states in the United States that have a coastline. This can be an ocean coast, a gulf coast, or a Great Lake coast. There are twenty three ocean/gulf of Mexico states, and eight Great Lake states. (New York is both an ocean state and a Great Lake state. , those in high-risk areas would welcome a federal backstop. "You bet in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the ," noted an agent who responded. "We have not been able to sell new homeowners for almost five very long years." Full results of the survey are published in the October issue of Best's Review. Best's Review is published by A.M. Best Co. for insurance professionals, including home office executives, agents, brokers and others who are affiliated with the industry, including bankers, lawyers and educators. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; Best's Review by visiting our Web site at www.bestreview.com/subscribe, calling the A.M. Best customer service department at (908) 439-2200, ext. 5742, or e-mailing your request to customer_service@ambest.com. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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