Shelby Nixes Retroactive Flood Insurance

Senate Banking Committee Chairman Richard Shelby, R-Ala., says he would not support legislation that allows hurricane victims to receive retroactive flood insurance."I think you have to look prospectively at any insurance," Sen. Shelby told reporters after a hearing on the National Flood Insurance Program. David Maurstad, the acting director of the Federal Emergency Management Agency, which manages the NFIP, also told reporters he would not support such legislation. In the House, Rep. Gene Taylor, D-Miss., has introduced a bill that would provide retroactive flood insurance for houses located outside flood plains where flood insurance is not required. Meanwhile, the acting FEMA director told the committee that the federal government could face more than $22 billion in flood insurance claims related to hurricanes Katrina and Rita. The NFIP has a $3.5 billion line of credit with the U.S. Treasury, but "additional borrowing authority will be necessary," Mr. Maurstad said. Sen. Shelby said it is "obvious" that the current flood insurance program is "totally inadequate."