Wiening, Personal Insurance (First Edition) – SK
Medigap Insurance – insurance one can buy to cover charges not covered by Medicare. These are sold by private insurers.
Medicaid – provides coverage to low-income groups. To qualify for benefits, you have to be poor, which may cause applicants to “spend down” their assets in order to qualify.
Hamilton/Ferguson, Personal Risk Management and Property-Liability Insurance – SK
Residual Insurance Markets for Residential Exposures (in Chapter 6)
National Flood Insurance Program – passed in 1968.
In 1973 – federal funds are constrained for properties in flood-prone areas unless property protected by flood insurance. No federally insured/financed lender can lend money on a property in flood-prone area unless covered by flood insurance in a community participating in NFIP. If the community is not participating in the NFIP, and the property is in a flood-prone area, the lender can make a conventional loan (not federally-backed) but must notify borrower that federal relief might be unavailable.
In 1991 – NFIP added the Mortgage Portfolio Protection Program, which required mandatory flood coverage.
Organization of the NFIP – under Write Your Own (WYO) program, some insurance companies can arrange w/ NFIP to sell policies and to adjust flood claims in their own name. FIA determines rates, etc. Private insurer collects premiums, retains commissions, pays out losses, etc. If flood losses exceed premium holdings, govt makes up difference. If income exceeds losses, insurer pays excess to govt.
Determination of Flood Insurance Availability – a community may approach FIA to be included in the program, or FEMA can determine an area is flood-prone and notify the community that it must comply w/ federal standards (the community may either apply, contest its flood-prone designation, or not participate in program).
Flood Insurance Programs
Emergency Program – there are 4 emergency rates: residential buildings, residential contents, nonresidential buildings, nonresidential contents. These rates are subsidized. However, the limits are relatively low. These programs are usually instituted while FIA is working on mapping out an area.
Regular Program – when FEMA assesses the area, it gets converted to a regular program (which they must convert to or lose all coverage). These limits are higher. Also, residents become eligible for a 2nd layer of insurance.
Flood Insurance Policies
Personal Property Coverage
Sandbags, Supplies, and Labor
Property Removed to Safety
Coverage for Increased Cost of Compliance
Property Not Covered
Replacement Cost Coverage