Declarations

Impact of Natural Disasters

“I have witnessed first hand the impact natural disasters can have on a community and this state.”

—Texas Rep. Craig Eiland, whose Galveston district was severely damaged Sept. 13, 2008, by Hurricane Ike. Eiland, along with other legislators from the Texas Gulf Coast, have proposed legislation requiring insurance companies to pay into a state catastrophe fund that the companies could tap if they sustain big losses from a hurricane or other natural disaster. The Texas Windstorm Insurance Association —the state-sanctioned last resort insurer for some coastal counties also would have to pay into the reinsurance fund. Eiland maintains insurers would save money by not having to buy and renew reinsurance year after year from private companies. The insurance catastrophe fund bill is HB 2487. AP

A Legal Backwater

“They don’t want to come here and be a mark for a lawsuit. … As long as we are considered a legal backwater, people will not want to come here.”

—Oklahoma Rep. Dan Sullivan, R-Tulsa. Sullivan, an attorney who defends physicians in malpractice lawsuits, authored a bill passed by the state House of Representatives that aims to reform the tort system in his state. Among other things, the bill would would cap non-economic damages, also known as pain and suffering, at $300,000, require a certificate from an expert that a lawsuit has merit before it can proceed in state court and change class-action lawsuit guidelines by requiring litigants to “opt in” to a lawsuit rather than “opt out.” The bill passed the House on a vote of 61-39. AP

Awash in Debt

“The flood insurance program is awash in debt, but instead of fixing the program and working to protect taxpayers from future losses, the Taylor bill would double down, adding a whole new costly liability to the program.”

—Steve Ellis, vice president of Taxpayers for Common Sense. The Sierra Club, American Rivers and Taxpayers for Common Sense—all members of the Americans for Smart Natural Catastrophe Policy—are opposing legislation that would add wind insurance coverage to the National Flood Insurance Program. According to these groups, the legislation (HR 1264) introduced again this year by Rep. Gene Taylor, D-Miss., would “irresponsibly expose” taxpayers to added financial liability at a time of economic crisis. The better alternative is to increase mitigation and environmental protection initiatives that would prevent damage to homes and the environment, according to the groups.