The Homeland Security Subcommittee on Management, Investigations and Oversight and the Financial Services Subcommittee on Oversight and Investigations will hold a hearing entitled "National Flood Insurance Program: Issues Exposed by the 2005 Hurricanes."
U.S. Representatives Christopher P. Carney (D-PA), Chairman of the Homeland Security Subcommittee on Management, Investigations and Oversight, and Melvin L. Watt (D-NC), Chairman of the Financial Services Subcommittee on Oversight and Investigations today announced a hearing to explore public and private sector insurance practices in the wake of the 2005 Hurricanes. The subcommittees will specifically examine the National Flood Insurance Program (NFIP), the interaction between the NFIP and private insurers and the allocation of wind vs. water insurance claims in light of preliminary findings from Government Accountability Office and Department of Homeland Security, Inspector General reports.
"Congress must ensure that every flood victim receives prompt and fair reimbursement for storm damage to their home. While the National Flood Insurance Program needs to be responsive when assessing damage and paying out claims to flood victims, it must also conduct better oversight to ensure that it's not being abused by its private insurance partners," said Rep. Carney.
"It is clear that the 2005 hurricanes (Katrina and Rita) exposed serious flaws in the insurance coverage and claims adjustment processes. This second hearing will continue responsible efforts by Congress to get the facts we need to insure that those flaws are corrected and that victims of future catastrophes are better protected," said Congressman Watt.
Congressman Bennie G. Thompson (D-MS), Chairman of the full Committee on Homeland Security, applauded the hearing and released the following statement:
"Disaster insurance programs are supposed to care and comfort our families in the most desperate of times, but it seems as though many have been manipulated to provide opportunists the chance to make larger profits. In times of crisis, we have seen too many vulnerable communities tied up in bureaucratic red tape. It is essential that our nation's disaster insurance programs be designed, administered, and overseen with the utmost of care and transparency."
Witnesses include: Matt Jadacki, Deputy Inspector General for Disaster Assistance Oversight, Office of the Inspector General, Department of Homeland Security; Orice Williams, Director, Financial Markets and Community Investments, GAO.