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<br />Learn-Assess <br /> <br />losses both over time and over a relatively large <br />number of similarly exposed risks. Until 1969, <br />insurance against flood losses was generally <br />unavailable. Under the National Flood Insurance <br />Program, initiated in 1968 and significantly <br />expanded in 1973, the federal government made <br />flood insurance available for existing property in <br />flood hazard areas in return for enactment and <br />enforcement of floodplain management regulations <br />designed to reduce future flood losses. <br /> <br />Although participation in the program is voluntary, <br />of21,926 communities in the nation identified as <br />floodprone, 18,023 (82%) had joined the program <br />as of November 30, 1990. At the end of calendar <br />year 1990, there were 2.39 million policies in force <br />with $201 billion of coverage. From 1978 through <br />1989, over 384,000 claims were paid totaling over <br />$3.1 billion. Net receipts from policy premiums <br />versus claims payments varies substantially from <br />year to year. From 1978 to 1989 the net operating <br />deficit or surplus ranged from a deficit of $261 per <br />policy in 1979 to a surplus of $98 per policy in <br />1987. A surplus was realized in fiscal years 1986, <br />1987, and 1988. As of October 1, 1988, the flood <br />insurance fund was operating with a net surplus of <br />$450 million, the result of a combination of rate <br />increases and relatively low flood losses during <br />those years. The accumulated surplus provides a <br />reserve for years with catastrophic losses. <br /> <br />In 1983, the Federal Insurance Administration <br />initiated its 'Write- Your-Own" program whereby <br />private insurance companies, under special <br />arrangements, are permitted to sell and service <br />flood insurance under their own names. The <br />success of this program is evidenced by the fact <br />that 80% of all flood insurance is presently sold by <br />the participating WYO insurance companies. <br /> <br />Insurance premiums are based on the location of a <br />structure within the floodplain and are determined <br /> <br />Page 21 of36 <br />