Insurers Face Congressional Scrutiny Again
as posted at www.claimsmag.com
June, 2007
For the second time in the last four months, the Financial Services and Homeland Security Oversight Subcommittees has scheduled a hearing to examine some of the insurance issues that came to light in the aftermath of the 2005 hurricane season next week.
Specifically, the subcommittees will 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 the Government Accountability Office and Department of Homeland Security.
The hearing was proposed by U.S. Representatives Melvin Watt (D-NC), who is chairman of the Financial Services Subcommittee on Oversight and Investigations, and Christopher Carney (D-PA), who is chairman of the Homeland Security Subcommittee on Management, Investigations, and Oversight. It will take place next week on Tuesday, June 12, 2007, at 2:30 p.m. EDT.
"It is clear that the 2005 hurricanes (Katrina and Rita) exposed serious flaws in the insurance coverage and claims adjustment processes,” said Rep. Watt, in a release issued by the House Committee on Financial Services. “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."
"Congress must ensure that every flood victim receives prompt and fair reimbursement for storm damage to their home,” said Rep. Carney, in a release. “While the NFIP 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."
