In the 1970s, when I administered the National Flood Insurance Program, we had serious problems with the National Flood Insurers Association, which at the time ran the NFIP.
One of the key problems was that private insurers that made up the NFIA refused to pay some claims we determined were covered under flood policy language.
A specific case I recall involved a community ordered to evacuate by the Army Corps of Engineers, who believed an upstream dam was about to fail. Later, the evacuation was cancelled as the dam held and the rains unexpectedly stopped.
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