WASHINGTON, D.C.,  Gov. Marc Racicot, president of the American Insurance Association (AIA), today issued a statement regarding the House Financial Services Committee vote to approve H.R. 3355, The Homeowners Defense Act of 2007.

Gov. Racicot’s statement follows:

“This legislation continues to cause serious concerns for AIA and its more than 350 member companies, who do not want to see Congress go down the road of incenting the creation of more state mechanisms that would interfere with the private market.”

“While we appreciate the efforts of Congressmen Klein and Mahoney to address homeowners’ insurance issues, the private insurance system continues to be well-positioned to manage natural catastrophe risk, and we believe the best course is to improve, not displace, the private sector’s ability to serve homeowners and businesses that could face losses from natural catastrophes.”

“We urge Congress to proceed cautiously and deliberately as it takes on homeowners’ insurance challenges, and to look toward durable, long-term, market-oriented solutions."

The American Insurance Association represents approximately 350 major insurance companies that provide all lines of property and casualty insurance and write more than $123 billion annually in premiums. The association is headquartered in Washington, D.C. and has representatives in every state. All AIA press releases are available at www.aiadc.org.

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Copyright 2007 American Insurance Association. All rights reserved.

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