The Democratic Party has approved a plank in its platform forthe coming election that calls for creation of a nationalcatastrophe fund. An advocate for such legislation said the movewas a first for a major political party.

The platform was adopted by acclamation Monday, the first day ofthe Democratic political convention.

The decision was greeted with elation by officials ofProtectingAmerica.org, a strong advocate for such a program.

"This is the first time that a national political party has evenaddressed America's preparedness for and protection fromcatastrophe," said David A. Smith, a director ofProtectingAmerica.org.

In Mr. Smith's view, "There is a growing consensus that Americaneeds a comprehensive and integrated private-public partnership toincrease mitigation and education before catastrophe strikes;enhance responsiveness during a catastrophe; and assure that theresources are available so homeowners can repair, rebuild andrecover in the aftermath of massive natural events like devastatinghurricanes and enormous earthquakes."

ProtectingAmerica.org is a supporter of the Homeowners' DefenseAct of 2007, H.R. 3355, which passed the House by a 258-155 marginlast November.

That bill would allow states to pool catastrophic risks, andthen transfer them to the private market through the sale ofcatastrophe bonds or purchase of reinsurance. The plan would bebacked by the federal government.

Similar legislation was introduced last year in the Senate bySen. Hillary Clinton, D-N.Y.

But, it faces a presidential veto threat and strong oppositionfrom the reinsurance industry.

The reinsurance industry is part of a newly created advocacygroup to oppose it, Americans for Smart Natural CatastrophePolicy.

ProtectingAmerica.org and the new group went head-to-head on theissue just last week, with Americans for Smart Natural CatastrophePolicy releasing a report estimating there would be an enormouscost to taxpayers for a catastrophe insurance program.ProtectingAmerica.org officials said the report was based on flawedassumptions and is "special interest double-talk."

In any event, the plank in the Democratic platform says theparty "will also work to prevent future catastrophic responsefailures, whether the emergency comes from hurricanes, earthquakes,floods, tornadoes, wild fires, drought, bridge collapses, or anyother natural or man-made disaster..."

It adds that Democrats will develop "a National CatastrophicInsurance Fund to offer an affordable insurance mechanism forhigh-risk catastrophes that no single private insurer can cover byitself for fear of bankruptcy. This will allow states to dealcomprehensively with the economic dislocation of naturaldisasters."