URGING THE CONGRESS OF THE UNITED STATES TO ENACT A NATIONAL REINSURANCE PROGRAM TO ADDRESS THE MULTI-STATE INSURANCE CRISIS RESULTING FROM CATASTROPHIC NATURAL DISASTERS.

2025 Regular Session Introduced by Stanley Chang and 6 co-sponsors

SCR 57 urges Congress to create a national reinsurance program, enhancing insurance stability for disaster-prone states and ensuring affordable coverage for residents.

Received from House (Hse. Com. No. 766).

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Purpose and Intent

SCR 57 is a concurrent resolution that urges the United States Congress to establish a national reinsurance program. The primary goal of this program is to address the ongoing multi-state insurance crisis that has arisen due to catastrophic natural disasters. By advocating for this program, the resolution aims to enhance the stability and availability of insurance coverage in areas frequently affected by such disasters.

Key Provisions

National Reinsurance Program: The resolution calls for the creation of a federal reinsurance program that would provide support to state insurance markets during times of catastrophic events.

Support for Affected States: The program is intended to assist states that experience significant financial strain on their insurance systems due to natural disasters, thereby ensuring that residents have access to necessary insurance coverage.

Collaboration with Federal Agencies: The resolution emphasizes the importance of collaboration with federal agencies such as the Federal Emergency Management Agency (FEMA) and the Federal Insurance Office (FIO) to implement the program effectively.

Impact

Insurance Providers: The establishment of a national reinsurance program would primarily benefit insurance companies by providing them with a safety net during catastrophic events, potentially reducing the risk of insolvency.

Policyholders: Homeowners and businesses in disaster-prone areas would gain improved access to affordable insurance options, enhancing their financial security in the face of natural disasters.

State Governments: States would receive support in managing the financial implications of disasters, allowing them to maintain robust insurance markets and protect their residents.

Legislative Timeline

Introduced: March 7, 2025

Adopted in Final Form: April 21, 2025

Key Legislative Actions:

April 17, 2025: Adopted by the House with unanimous support, with some members excused.
April 4, 2025: Referred to the Committee on Consumer Protection (CPC).
April 1, 2025: Recommended for adoption with amendments by the Committee on Commerce, Consumer Protection, and Health (CPN).
March 25, 2025: Public hearing scheduled by the CPN.

Related Legislation

SR 41: This resolution serves as a companion to SCR 57, further emphasizing the need for a national reinsurance program.

In summary, SCR 57 represents a proactive legislative effort to secure a national solution to the challenges faced by insurance markets in the wake of catastrophic natural disasters, ultimately aiming to protect both insurers and policyholders across multiple states.

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