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<br />Learn-Assess <br /> <br />primarily by the height of the structure's lowest <br />floor in relation to the height of water during a <br />base flood. Higher rates apply to structures subject <br />to fast-moving waters. New and substantially <br />improved structures in the floodplain that are not <br />properly elevated to the base flood level are <br />subject to higher rates than structures already in <br />the floodplain at the time a community joined the <br />program. Since 1974, flood insurance rates have <br />increased several times in order to reduce the <br />amount of the federal subsidy and bring the cost of <br />flood insurance closer to true actuarial rates. In <br />early 1988 A_. Losses per 1.100 Flood Insuraneel"ollcies <br />the on UnI1lglllalell vs. Regulated StructuRS, 1978-1918 <br /> <br />; <br />~22 <br />Q. <br />'" <br />g. <br />- <br />lG <br />Q. <br />" <br />~ <br />" <br />o <br />-' <br />!i <br />DB- <br />- <br />o <br />~ <br />.. <br />~ <br />;! <br />o. <br /> <br />Structures buill <br />before regulalicm <br /> <br /> <br />administrator of the Federal Insurance <br />Administration announced success in making the <br />National Flood Insurance Program self-supporting <br />for the historical average loss year." Even so, the <br />existing premium base is not large enough to <br />permit the National Flood Insurance Program to <br />operate on a fully actuarial basis. But because only <br />15% to 30% of the nation's floodprone structures <br />are insured, there is plenty of room for increased <br />market penetration. Several strategies for <br />increasing the number of insured structures have <br />been suggested, including requiring more stringent <br />enforcement by lenders of the mandatory purchase <br />requirements, increasing public awareness of the <br />flood hazard, imposing disclosure requirements on <br />real estate agents, offering special insurance <br /> <br />Page 22 of36 <br />