EMERSON SEEKS CREATION OF QUAKE INSURANCE POOL

DEXTER -- U.S. Congressman Bill Emerson, R-Cape Girardeau, announced legislation Saturday that would potentially increase the availability of earthquake insurance in quake-prone areas such as the New Madrid fault zone.

Emerson, co-sponsor of the bill, was in Dexter Saturday, along with members of a U.S. Geological Survey team, which is conducting a major seismic study of the nearby fault zone.

In a joint press conference, Emerson said the thrust of the legislation, known as House Resolution 2806, seeks to make earthquake insurance more affordable for insurance companies, and in turn, consumers.

"The legislation is really a pool of `reinsurance' aimed at making the cost of quake insurance less prohibitive," Emerson said.

By spreading the risk to insurance companies over several earthquake-prone regions, coverage would hopefully be cheaper and more readily available, he said.

"The availability of earthquake coverage is spotty in the district," the congressman said. "I have it and have no trouble getting it, but there are some areas in earthquake-prone regions that cannot get coverage.

"With this system, people would not be denied because the risk to insurance companies would be spread out."

Emerson said no federal money would be used for the program. Funding for the insurance pool would come from insurance purchasers. Additional funding would come from fees paid by insurance companies participating on a voluntary basis, he said.

"We're not going to mandate anything to insurance companies," he said. "Many of them are already in favor of this, so voluntarily, they will be contributing to the fund."

The bill is currently being reviewed by several House subcommittees, Emerson said, adding he hopes hearing on the House floor begin soon.

"We're calling for hearings now," he said. "The legislation process is unpredictable, but I think we'll see mounting support for this kind of approach to the problem and I would hope that within the next couple of years it could become law."