Where does your flood insurance money go?

 

What you should know about where your flood insurance money goes.....

 

Thanks to a link on the Stop FEMA now facebook page I read the testimony of;

 

Mark Davey

CEO of Fidelity National Property and Casualty Insurance Group.

The largest provider of flood insurance through the NFIP

 

Mark Appeared BEFORE THE SENATE BANKING, HOUSING AND URBAN AFFAIRS COMMITTEE

CONCERNING THE NATIONAL FLOOD INSURANCE PROGRAM. Below you will find a link to the complete testimony but I wanted to point out a few things that only the first page revealed.

 

 

 

The actual risk is 100% underwritten by the Federal Government through the National Flood

Insurance Program.

 

Insurance companies are responsible for all marketing, policy quotation, sale, issuance and servicing, in addition to all claims handling and claims payment.

 

Currently ALL participating companies receive an expense reimbursement of 30.2 percent for the policy issuance, servicing and marketing. NFIP  companies also receive a 3.3% claims administration fee when claims are adjusted and paid. The 30.2% processing fee is used to pay independent agency commissions, processing costs, marketing costs, and state premium taxes.

 

When I read the next paragraph, I thought to myself. what a bunch of " hoo wee" the banking industry has come up with software that scans and registers banking deposits. There is online management software that has a filing system so that any file can easily be uploaded to a database and maintained.  And you can not tell me that with NFIP guidelines in writing and the technological advances in GPS software, that an algorithm can't be put together to streamline the servicing process even further. For god sake they can zoom into peoples windows with new GPS software...

 

 

Here is the paragraph

 

While the insurance industry has reduced their underwriting costs for traditional lines through automation and

better processing techniques, flood insurance has become more cumbersome to rate and process. Marketing,

administering and interfacing with the NFIP is a truly specialized field. The rating process requires actual location information such as flood zone, determining elevation, reviewing pictures, and numerous forms to determine the correct rate for the property. This process does not lend itself to high automation....

 

People of this great nation need to pay attention to what is happening at the Federal Level before it's to late. The founding fathers of this country gave us the Constitution for a reason, To Protect ourselves from government.. If you don't protect yourself who will?