Legislation that would allow states to pool insurance risk in order to respond to natural disasters now includes provisions offered by Congressman Adam Putnam. 

Putnam worked to include language in HR 2555, “The Homeowners’ Defense Act,” sponsored by Congressman Ron Klein (D-Fla.) that requires state insurance programs to set fiscally sound rates and provides proper online disclosures to taxpayers.

“Everyone involved in this debate has been in Congress long enough to have witnessed a parade of natural disasters across the United States,” said Putnam. “We all know Congress will be the ultimate backstop in the event of a catastrophe.  This legislation is designed to put an end to the current implicit government guarantee that transfers the cost from premium-payers to taxpayers and instead, explicitly provide an opportunity for states to prepare in advance of a disaster and to ensure that state markets remain welcome to existing and new insurance providers.”

One amendment offered by Putnam – and adopted by voice vote – is a consumer disclosure and protection clause.  It requires state insurance programs to provide easily accessible information online that discloses to all policyholders, including home, car, boat and business owners, potential assessments or surcharges they will have to pay to shore up the debt of a state program following a natural disaster or catastrophic event, should insurance premiums not be properly estimated to cover a loss.

Another provision supported by Putnam requires state insurance programs to charge premium rates that cover the "expected value of all future costs.” This would help ensure that cost is properly measured against risk, and creates a level playing field for insurers, ensuring that the private market is not replaced by the federal government.

Since 2001, Putnam has represented Florida’s 12^th Congressional District, which includes most of Polk County and portions of Hillsborough and Osceola counties.