8/26/2010

The National Flood Insurance Program incurred massive losses from repetitive-loss claims combined with rate discounts for flood-prone properties, prompting the program to seek a taxpayer bailout worth $19 billion, according to a review of program data. The data show that the program will sometimes pay claims to homeowners totaling several times their home's value, over the course of several incidents. "If this were a private insurer, it would be bankrupt," said Insurance Information Institute President Robert Hartwig.

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