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Resolutions Adopted at the
67th Annual Conference of Mayors
New Orleans, Louisiana
June 11-15, 1999 |
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COMMUNITY DEVELOPMENT AND HOUSING
PUBLIC INSURANCE
WHEREAS, cities have an enormous stake in disaster assistance with local
governments and states ultimately charged with responding to the immediate needs of
residents when disasters strike; and
WHEREAS, the Federal Emergency Management Agency (FEMA) is proposing to re-write
the regulations pertaining to Public Assistance Program Insurance Requirements; and
WHEREAS, the agency’s proposal would require public entities to carry
"all hazard" insurance on public buildings as a condition of receiving federal
disaster assistance; and
WHEREAS, the U.S. Conference of Mayors supports the goal of reducing the
escalating costs of federal disaster relief; however, this proposal would place an
enormous burden on cities, as well as states, local school districts, public hospitals and
universities; and
WHEREAS, the proposal raises a number of concerns for cities, including:
the insurance industry’s ability to provide the type of coverage mandated;
potential public safety concerns arising from having critical public buildings, such as
public hospitals, left unrepaired as a result of insurance companies going bankrupt after
a disaster;
delays in delivery of public assistance resulting from jurisdictions that may be forced
into extended legal battles stemming from insurance companies not offering full coverage
in the aftermath of disasters; and
increased administrative burden and costs to localities that are required to carry
multiple policies for each public building, even in cases where only theoretical risk
exists,
NOW, THEREFORE, BE IT RESOLVED that The U.S. Conference of Mayors urges the
President and FEMA to slow down the rulemaking process on the insurance requirements to
ensure that cities and other affected parties have full and substantial input in the
development of the proposed rule so that the potential impact of any changes is thoroughly
examined.
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