The Future of the National Flood Insurance Program
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S. HRG. 109–830 THE FUTURE OF THE NATIONAL FLOOD INSURANCE PROGRAM HEARINGS BEFORE THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE ONE HUNDRED NINTH CONGRESS FIRST AND SECOND SESSION ON EXAMINATION OF THE FUTURE OF THE NATIONAL FLOOD INSURANCE PROGRAM, FOCUSING ON REDUCING LOSSES TO THE PROGRAM RE- SULTING FROM POLICY SUBSIDIES AND REPETITIVE LOSS PROP- ERTIES, AND DEVELOPING ACCURATE DIGITAL FLOOD MAPS OCTOBER 18, 2005, JANUARY 25, AND FEBRUARY 2, 2006 Printed for the use of the Committee on Banking, Housing, and Urban Affairs ( Available at: http://www.access.gpo.gov/congress/senate/senate05sh.html U.S. GOVERNMENT PRINTING OFFICE 33–994 PDF WASHINGTON : 2007 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 19:35 Jul 12, 2007 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\DOCS\33994.TXT SBANK4 PsN: KEVIN COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS RICHARD C. SHELBY, Alabama, Chairman ROBERT F. BENNETT, Utah PAUL S. SARBANES, Maryland WAYNE ALLARD, Colorado CHRISTOPHER J. DODD, Connecticut MICHAEL B. ENZI, Wyoming TIM JOHNSON, South Dakota CHUCK HAGEL, Nebraska JACK REED, Rhode Island RICK SANTORUM, Pennsylvania CHARLES E. SCHUMER, New York JIM BUNNING, Kentucky EVAN BAYH, Indiana MIKE CRAPO, Idaho THOMAS R. CARPER, Delaware JOHN E. SUNUNU, New Hampshire DEBBIE STABENOW, Michigan ELIZABETH DOLE, North Carolina ROBERT MENENDEZ, New Jersey MEL MARTINEZ, Florida KATHLEEN L. CASEY, Staff Director and Counsel STEVEN B. HARRIS, Democratic Staff Director and Chief Counsel JEFFREY T. POWELL, Legislative Assistant J. BRACK HUDSON, Assistant to the Chief Counsel MARK A. CALABRIA, Senior Professional Staff Member JOHN EAST, Legislative Assistant JONATHAN MILLER, Democratic Professional Staff JENNIFER FOGEL-BUBLICK, Democratic Counsel SARAH GARRETT, Democratic Legislative Assistant JOSEPH R. KOLINSKI, Chief Clerk and Computer Systems Administrator GEORGE E. WHITTLE, Editor (II) VerDate 0ct 09 2002 19:35 Jul 12, 2007 Jkt 000000 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 S:\DOCS\33994.TXT SBANK4 PsN: KEVIN CONTENTS TUESDAY, OCTOBER 18, 2005 Page Opening statement of Chairman Shelby ................................................................ 1 Opening statements, comments, or prepared statements of: Senator Sarbanes .............................................................................................. 2 Senator Bennett ................................................................................................ 4 Senator Reed ..................................................................................................... 4 Senator Bunning ............................................................................................... 4 Senator Carper ................................................................................................. 5 Senator Dole ...................................................................................................... 6 WITNESSES David I. Maurstad, Acting Director and Federal Insurance Administrator Mitigation Division, Federal Emergency Management Agency, Emergency Preparedness and Response Directorate, U.S. Department of Homeland Security ................................................................................................................. 7 Prepared statement .......................................................................................... 36 Response to written questions of Senator Sarbanes ...................................... 91 William O. Jenkins, Jr., Director, Homeland Security and Justice Issues, U.S. Government Accountability Office .............................................................. 9 Prepared statement .......................................................................................... 40 Chris Landsea, Tropical Prediction Center/National Hurricane Center, Na- tional Weather Service, National Oceanic and Atmospheric Administration, U.S. Department of Commerce ........................................................................... 11 Prepared statement .......................................................................................... 56 J. Robert Hunter, Director of Insurance, Consumer Federation of America ...... 26 Prepared statement .......................................................................................... 59 Douglas J. Elliott, President, Center On Federal Financial Institutions ........... 28 Prepared statement .......................................................................................... 68 Robert P. Hartwig, Ph.D., CPCU, Senior Vice President & Chief Economist, Insurance Information Institute, New York, NY ............................................... 29 Prepared statement .......................................................................................... 69 Chad Berginnis, CFM, Immediate Past Chair, State of Ohio .............................. 30 Prepared statement .......................................................................................... 78 Mark J. Browne, Gerald D. Stephens CPCU Chair, Risk Management and Insurance, School of Business, University of Wisconsin—Madison ................. 32 Prepared statement .......................................................................................... 85 ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD Letter from the National Association of Realtors® submitted by Senator Eliza- beth Dole ............................................................................................................... 97 WEDNESDAY, JANUARY 25, 2006 Opening statement of Chairman Shelby ................................................................ 101 Opening statements, comments, or prepared statements of: Senator Sarbanes .............................................................................................. 103 Senator Bennett ................................................................................................ 105 Senator Menendez ............................................................................................ 105 Senator Bunning ............................................................................................... 106 (III) VerDate 0ct 09 2002 19:35 Jul 12, 2007 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\DOCS\33994.TXT SBANK4 PsN: KEVIN IV Page Opening statements, comments, or prepared statements of—Continued Senator Stabenow ............................................................................................. 107 Senator Crapo ................................................................................................... 108 Senator Carper ................................................................................................. 108 Senator Dole ...................................................................................................... 109 Senator Martinez .............................................................................................. 110 Senator Allard ................................................................................................... 112 Senator Reed ..................................................................................................... 138 Senator Hagel ................................................................................................... 144 WITNESSES David M. Walker, Comptroller General of the United States .............................. 113 Prepared statement .......................................................................................... 145 Response to written questions of: Senator Dole .............................................................................................. 179 Senator Reed .............................................................................................. 179 David I. Maurstad, Acting Director and Federal Insurance Administrator Mitigation Division, Federal Emergency Management Agency, Emergency Preparedness and Response Directorate, U.S. Department of Homeland Security ................................................................................................................. 115 Prepared statement .......................................................................................... 166 Response to written questions of: Senator Dole .............................................................................................. 181 Senator Reed .............................................................................................. 184 Donald B. Marron, Acting Director, Congressional Budget Office ...................... 117 Prepared statement .......................................................................................... 172 THURSDAY, FEBRUARY 2, 2006 Opening statement of Chairman Shelby ................................................................ 189 Opening statements, comments, or prepared statements of: Senator Sarbanes .............................................................................................. 190 Senator Reed ..................................................................................................... 191 Prepared statement ................................................................................... 231 Senator Santorum ............................................................................................ 195 Senator Allard ..................................................................................................