McClellan had been asked if feds were working with insurance industry on flood claims

Last week during a committee oversight hearing Rep Gene Taylor (D-MS) revealed a meeting that occured on September 7th 2005 where apparently David Maurstad, the director of the National Flood Insurance Program, met with approximately 300 representatives of the insurance industry. In that meeting Maurstad “outlined the National Flood Insurance Program’s
attitude towards the whole wind vs. water” issue of Katrina claims. (partial transcript & video here)

There are now allegations that this set in motion the insurance companies overbilling of the NFIP while minimizing their own costs–in other words taxpayers subsidized the insurance companies’ hurricane claims.

It is interesting to note that during a White House press briefing on September 16, 2005 a reporter asked SPECIFICALLY if the administration was working with the insurance industry on this issue.

Al Hubbard and Scottie McClelan dodged the question claiming this was a state’s issue. They revealed nothing of the Sept 7th meeting…

Q And can I also ask you a question about insurance. This is a topic
that keeps coming up among the affected region.Is the federal
government working on — with industry, the insurance industry — to
think of the proper way that the federal government can do write-offs of
insurance or subsidies, or how, in any way, on the insurance problem,
flood versus —

Answer after the jump…

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