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GGD-95-20R 1 (1994-11-07)

handle is hein.gao/gaobackrn0001 and id is 1 raw text is: 




(3    0      United States
   N   )O    General Accounting Office
             Washington, D.C. 20548

             General Government Division


             B-258682


             November 7, 1994
             The Honorable Daniel K. Inouye
             United States Senate

             Dear Senator Inouye:

             Thank you for the opportunity to comment on changes you
             are considering to S. 1350, the Natural Disaster
             Protection Act, and whether these changes would enhance
             the effectiveness of the primary insurance and
             reinsurance programs contained in the bill. We share
             your interest in exploring ways to reduce the loss of
             life and property and the economic consequences of
             future natural disasters, including reliance on
             government disaster assistance. The multihazard
             disaster mitigation and insurance programs proposed in
             S. 1350 represent one approach for accomplishing these
             objectives.

             In our May 26, 1994, written statement', we expressed
             several concerns regarding the ability of the primary
             insurance and reinsurance programs proposed in S. 1350
             to fairly and efficiently spread insured disaster risks
             among policyholders, insurance companies, and the
             federal government. While the changes outlined in both
             your July 22, 1994, letter and the July 18, 1994,
             redlined version of the bill may enhance aspects of
             these insurance programs, we continue to have concerns
             regarding both programs. We are providing you with our
             analysis of the changes you are considering within the
             context of the concerns we raised in our initial
             statement.






             'Federal Disaster Insurance: Goals Are Good, But
             Insurance Programs Would Expose The Federal Government
             To Large Potential Losses (GAO/T-GGD-94-153, May 26,
             1994)

                             GAO/GGD-95-20R Federal Disaster Insurance

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