WASHINGTON–Two Florida congressmen opened the new 110th Congresslate yesterday by introducing legislation that would establish afederal reinsurance catastrophic fund as a federal backstop forfuture natural disasters.

The Homeowners' Insurance Protection Act of 2007 was introducedby Florida Republican Reps. Ginny Brown-Waite and Vern Buchanan.Mr. Buchanan holds his seat now on a provisional basis whileDemocrats contest his election.

The Brown-Waite Buchanan bill would create a federalcatastrophic reinsurance fund, which state catastrophe funds wouldcontribute to, so that the federal taxpayers would no longer beforced to foot the bill for natural disasters, they explained. Rep.Brown-Waite has introduced such legislation in the past.

Their legislation would create Catastrophic Capital ReserveFunds, essentially tax-deferred savings accounts that may be usedby private insurance companies to help offset the costs ofonce-in-a-hundred-year magnitude events.

The bill is designed to encourage states to create catastrophicfunds by providing a federal backstop for those states thatvoluntarily create state funds.

“The bill makes it clear that any and all cost savings achievedthrough this legislation must be passed along to the consumer, andnot kept as corporate profits,” the legislators said.

Under the bill, the federal fund would be named the ConsumerHurricane and Earthquake Protection (HELP) Fund. It would be housedin the Department of the Treasury and provide lower-costreinsurance to state catastrophe funds, thus reducing the costs ofhomeowners' insurance to those around the country.

Under the bill, should a one-in-200-year natural disaster eventstrike a state, the federal catastrophe fund would provide coverageup to a one-in-500-year magnitude event.

Mr. Buchanan's election this past November is in dispute becausehis Democratic opponent, Christine Jennings, received no votesamong 18,000 cast in Sarasota County, her strongest area in thedistrict.

The House leadership has agreed to seat Rep. Buchananprovisionally.

Rep. Barney Frank, D-Mass., chairman of the House FinancialServices Committee, told reporters last month that his committee isprepared to consider federal catastrophe reinsurance proposals, butcautioned that action by House committees in the new Congress isnot likely to get underway until March, and he has more pressingissues he wants to consider first.