R Street hosts Aug. 3 presentation on cost of a federal earthquake fund
WASHINGTON (July 18, 2012) — Legislation introduced in the 112th Congress by Sens. Dianne Feinstein and Barbara Boxer, D-Calif., and Rep. John Campbell, R-Calif., proposes to create a federal backstop for state-run earthquake insurance funds like the California Earthquake Authority. While Congress has in the past considered, and rejected, similar proposals for state windstorm pools, there has thus far been little research into the potential consequences of a taxpayer-financed earthquake fund.
On Aug. 3, the R Street Institute will publish the first comprehensive look at the expected costs and effects of this proposal. Authored by R Street Associate Fellow Lars Powell, the Whitbeck-Beyer Chair of Insurance and Financial Services at the University of Arkansas-Little Rock, the paper projects that an earthquake insurance backstop would displace private market insurance and reinsurance and encourage earthquake-prone states to set up thinly capitalized earthquake insurance mechanisms that would be designed to default. This would have the effect of transfering exposure for tens of billions of dollars in earthquake risk onto federal taxpayers.
We invite you to join R Street and representatives from Taxpayers for Common Sense, the National Taxpayers Union and American Commitment for a discussion on this important issue.
WHAT: Analysis of S.637, the Earthquake Insurance Affordability Act
WHEN: Aug. 3, 2012, 11:30 a.m. to 2 p.m.
WHERE: Senate Visitor Center, Room #201, U.S. Capitol, Washington D.C.
WHO: Lars Powell, R Street Institute
Steve Ellis, Taxpayers for Common Sense
Pete Sepp, National Taxpayers Union
Phil Kerpen, American Commitment
Lunch will be served. Please RSVP by Aug. 1 to R Street Operations Director Erica Fogue at [email protected] or 202.525.5717.
R Street is a non-profit public policy research organization that supports free markets; limited, effective government; and responsible environmental stewardship. It has headquarters in Washington, D.C. and branch offices in Tallahassee, Fla.; Austin,Texas; and Columbus, Ohio. Its website is www.redesign.rstreet.org.
