S-4778               _______________________________________________

                                          SENATE JOINT MEMORIAL NO. 8025

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators von Reichbauer, Moore, Sutherland, Fleming and Gaspard

Read first time 1/31/90 and referred to Committee on Financial Institutions & Insurance.

TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES, IN CONGRESS ASSEMBLED:

          We, your Memorialists, the Senate and House of Representatives of the State of Washington, in legislative session assembled, respectfully represent and petition as follows:

          WHEREAS, The state of Washington has experienced a number of major earthquakes in its history; and

          WHEREAS, Recent evidence indicates that at least five great earthquakes of the magnitude of 8.0 - 9.0 on the Richter scale have shaken Washington over the last 3,000 years; and

          WHEREAS, In the last 135 years, there have been more than 1,000 earthquakes of moderate to large magnitude in the Puget Sound-Southern Georgia Strait, and major earthquakes have struck as recently as 1949 in Olympia and 1965 in Seattle; and

          WHEREAS, There is a steadily growing body of evidence advanced by the United States Geological Survey, local geologists, and seismologists that supports a prediction of a massive Pacific Northwest earthquake within the next twenty years; and

          WHEREAS, A catastrophic earthquake and its ensuing fire, injury, and death will result in billions of dollars of property and liability insurance losses, as well as additional billions of dollars in health and life insurance claims; and

          WHEREAS, While current property-casualty insurance company reserves are sufficient to respond to losses resulting from a catastrophic earthquake, the remaining reserves of the industry would not be sufficient, as required by law, to allow it to continue to write the insurance in force or to write new policies; and

          WHEREAS, A catastrophic earthquake would destroy insurance markets, leave the public without the needed availability of insurance and impact the national economy; and

          WHEREAS, The availability of insurance would be necessary to allow for the rebuilding of the area devastated by a catastrophic earthquake; and

          WHEREAS, There has been proposed by The Earthquake Project, the Federal Earthquake Insurance and Reinsurance Act (FEIRA), which would establish a universal program for earthquake insurance coverage; and

          WHEREAS, The FEIRA would provide for both the continued viability of the property-casualty insurance industry in the wake of a catastrophic earthquake and affordable earthquake insurance coverage for the citizens of Washington;

          NOW, THEREFORE, Your Memorialists respectfully pray that the concept of a federal earthquake insurance program and the work of The Earthquake Project be endorsed as vital elements towards enhancing Washington's earthquake preparedness; and that the Washington congressional delegation support the provisions of the FEIRA and work to enact the legislation at the earliest possible time.

          BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the President of the United States Senate, the Speaker of the House of Representatives, and each member of Congress from the State of Washington.