Republican presidential candidate John McCain is opposed to a bill that would propose a national risk pool for natural catastrophes, while Democratic candidate Barack Obama supports the fund.
McCain said though he sympathizes with homeowners affected by rising insurance costs, he would not support a national risk pool. He said he is open to a Gulf states compact in which storm-threatened states would form regional alliances.
The legislation, the Homeowners Defense Act of 2007, passed the House of Representatives in November 2007 but has no support from Senate. The bill, sponsored by Palm Beach County Democratic U.S. Representatives Ron Klein and Tim Mahoney, would allow states to pool catastrophe risks, transferring them to the private market through catastrophe bonds sales or reinsurance purchases.
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