FEMA may have AUTHORIZED flood insurance overbilling

[babylonsister]

http://blog.nola.com/times-picayune/2007/06/fema_may_have_authorized_flood.html

FEMA may have authorized flood insurance overbilling
Posted by Money section June 14, 2007 8:49PM

By Rebecca Mowbray
Business writer

The private insurance industry's alleged practice of overbilling the National Flood Insurance Program for Hurricane Katrina damage has Congress clamoring for answers and a federal judge calling for the Justice Department's intervention.

But there's one problem with the calls to action.

The Federal Emergency Management Agency may have told the insurance industry that it was OK to load up damages on the taxpayer-funded flood program while shorting people on their wind damage payments.

In the now controversial Sept. 21, 2005 memo explaining the expedited flood adjustment procedures that were developed in consultation with private insurance companies, flood program director David Maurstad said:

"FEMA will not seek reimbursement from the company when a subsequent review identifies overpayments resulting from the company's proper use of FEMA depth data and a reasonable method of developing square foot value in concluding claims."

Not "if" a subsequent review identifies overpayments, but "when" a subsequent review identifies overpayments.

more...

[havocmom]

1. Great catch. Thanks, sis!

[babylonsister]

2. Maybe this is why they wanted FEMA to fall under the umbrella

of DHS. They can now authorize this agency to slip the big bucks to their corporate masters, with no one the wiser, or so they thought. As for the people affected by the catastrophe that is/was Katrina, no one seems to give a damn about them.

[havocmom]

3. kick for the afternoon shift

:kick: