WASHINGTON–A new study shows that adding windstorm coverage to the National Flood Insurance Program could raise the program's potential deficit astronomically, an insurance group warned Congress.
In advance of a House Financial Services Committee hearing on all-perils legislation scheduled for Tuesday, the American Insurance Association released findings by the Towers Perrin consulting firm that in some scenarios "deficits from catastrophic wind events in a single year could be $100 billion to $200 billion, or potentially even higher."
The study was released against the background of the upcoming committee session to consider H.R. 920, legislation introduced earlier this year by Rep. Gene Taylor, D-Miss.
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