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Post by Sapphire Capital on Aug 14, 2008 20:52:33 GMT 4
Floods, Flood Insurance, Litigation, Politics - and Catastrophe: The National Flood Insurance Program Ernest B. Abbott FEMA Law Associates, PLLC Sea Grant Law and Policy Journal, Vol. 1, No. 1, p. 129, June 2008 Abstract: In the wake of its catastrophic losses from Hurricane Katrina and resulting 17 billion dollar debt, this article examines the efforts of the National Flood Insurance Program (NFIP) to become financially self-sustaining by raising premiums, reducing coverage, requiring that flood-prone properties be insured, and addressing repetitive loss properties. It also shows how how these efforts have been reflected in litigation by property owners against the federal government and the private insurance companies that issue federal flood insurance policies. This litigation is rarely successful because the NFIP can avail itself of defenses available to the federal government (e.g., sovereign immunity, federal preemption, and a requirement of strict compliance with regulatory requirements). Although Congress has been sympathetic to policy holder grievances, it has not opened the door to litigation. Congress has instead sought to address policy holder concerns by administrative means: requiring better communication of policy terms to policyholders, enhancing training of insurance agents, and creating administrative appeal procedures. papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1160368_code1069478.pdf?abstractid=1160368&mirid=2
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