Lawmakers seeking an overhaul of the insurance industry got the disappointing news Wednesday that the White House opposes setting up a federal catastrophic insurance program. Edward Lazear, chairman of the Council of Economic Advisers, told members of the Senate banking committee that such a program would spread costs unfairly among taxpayers nationwide. "The insurance industry is healthy, and the private sector is well-equipped to provide insurance for hurricanes and other natural catastrophes, but state regulators and the federal government must allow the private market to function," Lazear testified at a committee hearing.
White House says no go to catastrophic insurance
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