Federal Disaster Insurance: Goals Are Good, But Insurance Programs Would
Expose the Federal Government to Large Potential Losses (Testimony,
05/26/94, GAO/T-GGD-94-153).

Although the insurance industry has absorbed losses from recent natural
disasters without systemic failures, concerns exist about its ability to
handle losses from potentially larger disasters. The federal government
has absorbed a large portion of the losses from past disasters and is
likely to pay out even larger amounts in the future.  S. 1350 would set
up three interrelated programs--a multihazard disaster mitigation
program, a primary insurance program for earthquakes and volcanic
eruptions, and a reinsurance program to cap insurers' losses when major
disasters occur.  This testimony explains in detail the provisions of S.
1350 and provides GAO's analysis and concerns about the legislation.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-94-153
     TITLE:  Federal Disaster Insurance: Goals Are Good, But Insurance 
             Programs Would Expose the Federal Government to
             Large Potential Losses
      DATE:  05/26/94
   SUBJECT:  Federal aid programs
             Disaster relief aid
             Proposed legislation
             Insurance losses
             Property damage claims
             Actuarial tables
             Insurance regulation
             Property losses
             Government liability (legal)
             Indemnity
IDENTIFIER:  Hurricane Andrew
             Northridge Earthquake
             Federal Crop Insurance Program
             Northridge (CA)
             
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