Rate for flood insurance

Soon after the 1951 floods on the Kansas and lower Missouri Rivers, President Truman submitted to Congress (82d Cong., 1st sess., 1951) a proposal for a national flood insurance fund. Although the proposal was not acted upon by the 82d Congree, there was considerable discussion of it in the press and in the technical literature. Among the latter were papers by Langbein (1953), Foster (1954), and by the Insurance Executive Association (1952). The paper by Langbein discussed flood insurance as a means of promoting wise use of the flood plain. Foster's paper reviewed his work for the Insurance Executive Association without, however, reaching any independent decision as to the workability of hydrologic techniques in an insurance program. The report of the Insurance Executive Association presented mainly the industries viewpoint that flood insurance is not feasible. It is interesting to note, however, that in a recent report McGuinness (1957), of the Allstate Insurance Co., says "This position has been taken without recourse to actuarial or statistical methods which might be used to fit an insurance company's underwriting retentions to the exposures it would meet."