The National Flood Insurance Program (NFIP) was created to provide “a reasonable method of sharing the risk of flood losses through a program of flood insurance which can complement and encourage preventative and protective measures.” To foster increased participation, the NFIP did not charge actuarially sound rates, or increase rates based on previous loss experience. […]
Continue Reading »Insurance
Price-Anderson Act
Price-Anderson provides for the process of resolving liability claims in response to an accident at a commercial nuclear power plant. The act creates two tiers of liability coverage. The first tier requires commercial nuclear power plant owners to obtain enough private insurance to cover liability claims up to $375 million. If claims exceed the tier […]
Continue Reading »
Crop Insurance
Producers can purchase taxpayer-subsidized insurance through the Federal Crop Insurance Corporation (FCIP). Though called “insurance,” it does not operate like insurance that most Americans purchase. That is because the government typically pays 100 percent of the premiums for basic catastrophic coverage and subsidizes an average of 62 percent of farmer’s individual crop insurance premiums. In […]
Continue Reading »