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Flood Insurance: Public Policy Goals Provide a Framework for Reform: Congressional Testimony
Orice Williams Brown
The National Flood Insur. Program (NFIP) had to borrow from the U.S. Treasury to cover losses from the 2005 hurricanes. The outstanding debt is $17.8 billion as of March 2011. This sizeable debt, plus operational and mgmt. challenges at FEMA, which administers NFIP, have kept the program on the high-risk list. NFIPís need to borrow to cover claims in years of catastrophic flooding has raised concerns about the programís long-term financial solvency. This testimony: 1) discusses ways to place NFIP on a sounder financial footing in light of public policy goals for fed. involvement in natural catastrophe insur.; and 2) highlights operational and mgmt. challenges at FEMA that affect the program. This is a print on demand report.
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