Financial Services Committee Hearing Case For Flood Insurance Reform

Posted To: MND NewsWire

The House Committee on Financial Services held its second day of hearings on Wednesday regarding the National Flood Insurance Program (NFIP). NFIP was created by Congress in 1968 because of a lack of appropriate insurance in the public market. The program is administered by the Federal Emergency Management Authority (FEMA) and provides flood insurance to policyholders in the United States and its territories. Insurance agents and companies participate as third-party administrators in the NFIP's Write Your Own (WYO) program and property owners can purchase the insurance only if their communities agree to mitigate flood risks. The original program was modified in 2012 by the Biggert-Waters Act which sought to increase premiums to more risk-based rates, gradually eliminating government subsidies...(read more)

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