Federal reinsurance program proposed as cost-cutting measure

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, is looking to create a federal reinsurance program that would prop up insurance companies during national disasters. The Property Casualty Insurers Association of America supports federal involvement and thinks the government should provide loans following a disaster. "Essentially, instead of having the federal government act as a reinsurer, the federal government would act as a bank," said spokesman Joseph Annotti.

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