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The National Flood Insurance Program (NFIP) went through an audit by the GAO in October 2008. The GAO found many interesting things:

First, the flood maps used by FEMA were dated and underpresented the risk of flood;
Second, FEMA rates were designed to just cover annual claims - there was no expectation of creating the type of ndowment style funding insurance companies use to create reserves for excessive claims;
Three, FEMA was experiencing increasing claim frequency and claims but had not adjusted their model.

This is all what someone might expect from climate change, but the thing that causes the blood to boil is the chart blow the squiggly thing

This is the chart of the past claims on NFIP by state for a thirty year period - 1978-2007. Please note the states where claims exceeded premiums:

The text is a little small but the pertinent facts:

Missouri (1 Nay) - premiums minus claims - NEGATIVE $384,344,855
Texas (8 Nay) -premiums minus claims - NEGATIVE $728,796,632
Alabama (1 Nay) - premiums minus claims - NEGATIVE $505,212,107

The roll call of states with a negative balance:

West Virginia
North Carolina
North Dakota

On the other hand,

NEW JERSEY - premiums minus claims - POSITIVE $1,071,199,191
New York - premiums minus claims - POSITIVE $574,475,012
Connecticut - premiums minus claims - POSITIVE $209,580,515

The Republican congresscritter is worse than the guy who won't pay his bill. Just one more piece of evidence this is the guy who sits down to the table, waits for everyone to agree to split the bill and orders the most expensive item on the menu. But, if he isn't very hungry, he screams there is no reason to split the bill.

Everyone should respond to the vote on Sandy by calling their congresscritters and asking why flood insurance rates are subsidized for the states that refuse to pay the bills.

If anyone wants to read the full report, it pdf is here

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