More NFIP Funds Needed to Pay for Sandy
November 19, 2012
The Obama Administration is expected to seek an additional $4.025 billion for the National Flood Insurance Program (NFIP), which currently has borrowed $20.775 billion.
Mississippi Insurance Commissioner and head of the National Association of Insurance Commissioners' flood insurance working group Mike Chaney says an informal survey of congressional members finds lawmakers are wary of revisiting the NFIP so soon after reforms were passed. The program was extended into 2017 earlier this year.
The administration and others are concerned that the extent of the damages from Superstorm Sandy will exhaust the current borrowing capacity and reserves of the program. Federal Insurance and Mitigation Administration Deputy Associate Administrator Edward Conner says the NFIP will use up its $900 million in cash and its remaining $2.9 million in borrowing authority by the end of the month to pay for Superstorm Sandy claims.
"President to Ask for NFIP Borrowing Increase," PropertyCasualty360 (Nov. 16, 2012)
© Copyright: Infomation Inc. 2012
Updated: August 07, 2020