tsai3904
08-31-2011, 09:29 PM
http://www.msnbc.msn.com/id/44334082/ns/us_news-life/
After Katrina and Rita struck in 2005, the National Flood Insurance Program (NFIP) was more or less insolvent, without the capacity to pay the huge volume of claims those hurricanes created. Congress reacted by increasing the NFIP's borrowing ability from the U.S. Treasury more than 13-fold, to a level of nearly $21 billion.
That debt burden is, by all accounts, unsustainable. The Government Accountability Office, in a late-2006 report, said FEMA would never be able to pay off the NFIP's debts given the level of business it was doing at the time.
More at link above.
After Katrina and Rita struck in 2005, the National Flood Insurance Program (NFIP) was more or less insolvent, without the capacity to pay the huge volume of claims those hurricanes created. Congress reacted by increasing the NFIP's borrowing ability from the U.S. Treasury more than 13-fold, to a level of nearly $21 billion.
That debt burden is, by all accounts, unsustainable. The Government Accountability Office, in a late-2006 report, said FEMA would never be able to pay off the NFIP's debts given the level of business it was doing at the time.
More at link above.