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The Wind Versus Flood Dispute: A Conflict of Interest – A Review of the Proposed Multiple Peril Insurance Act of 2009

In the wake of Hurricane Katrina thousands of insurance claims were filed. Insurance claim adjusters were forced to evaluate the loss suffered and make determinations as to the cause of the damage and destruction of properties - wind versus flood - thus determining whether the private insurance industry or federal government would have the obligation to pay.  Following allegations of corrupt evaluation policies that led to the denial of many wind insurance claims and the general retreat of the private insurance industry from offering wind coverage in coastal areas, Congressman Gene Taylor of Mississippi introduced the Multiple Peril Insurance Act to the House of Representatives. The Act proposed the extension of the National Flood Insurance Program to include windstorm insurance coverage in addition to flood insurance.