Insurers have taken a beating in Congress and the press forallegedly dumping claims involving properties damaged in HurricaneKatrina on the National Flood Insurance Program, which in factmight have been wind-related and should have been paid by privatehomeowners carriers. While two federal investigations failed tocome up with any evidence supporting such charges, one insurertestifying on Capitol Hill offered a solution that might make thepoint moot in future storms. I am curious what you make of it.

Indeed, as reported by our own Matt Brady (click here for the full story), Fidelity National Insurance CompanyPresident and CEO Mark Davey said his company cannot possibly bepegged with what Rep. Gene Taylor, R-Miss., has characterized as anatural conflict of interest in having a homeowners insurer thatalso writes for the NFIP send an adjuster to assess wind and waterclaims on the same property.

Under such circumstances, it has been suggested, an adjusterloyal to their employer–the insurer–might be tempted or evencoerced to skew their report to indicate that flood waters wereentirely responsible for a loss, no matter what evidence of winddamage might be evident, thereby sticking Uncle Sam with the entirebill.