Congress To Act On FloodInsurance
WASHINGTON - (09/21/05) -- Congress is expected to address amassive shortfall in flood insurance in the Gulf States in the wakeof Hurricane Katrina, a leading lawmaker said Tuesday. Speakingafter remarks at NAFCU's annual Congressional Caucus, Rep. MichaelOxley, chairman of the House Financial Services Committee, said heexpects Congress will have to do something to address the huge voidin insurance coverage for properties flooded in New Orleans andelsewhere in the Gulf. Oxley said Congress already doubled thefunding available to cover valid flood insurance claims sent to theFederal Emergency Management Agency, the only provider of floodinsurance in the country. But Oxley acknowledged there are hugeareas that are not insured against floods, potentially leavingcredit unions, banks and other lenders on the hook, unless thefederal government provides relief. The Ohio lawmaker also said heexpects the House to proceed quickly with a bill that will insureall checks and other financial instruments that are connected withHurricane Katrina relief. That bill would have the Federal Reserveindemnify all credit unions and banks for check or credit cardfraud connected to hurricane relief.