. >> good morning, chairman leutkemeyer, and the ranking member and subcommittee.am based out of kansas city, missouri and thank you for inviting me to testify. this is a 40.2 billion market and we underwrite a high amount of that. our market exist to provide insurance coverage for nonstandard and complex risks and risks for what the market is not willing to underwrite. the freedom is what allows this to work. this principle is partial to the effective operation. considering the impact of losses causing certain countries of the business to withdraw. market responses to cat events is measured by the rate surplus premiums shifted up or down in relation to property premiums. you see these events followed by spikes in surplus lines premiums. spikes that exceed the growth of the overall market. and the reverse is true in the years following where the market is lower as the standard market adjust. without this safety net, consumers can be left without coverage. the same same applies to the surplus lines. this is not new. why might that be? property exposures may exceed t

i would like to express my appreciation for chairman leutkemeyer holding these hearings. the national flood program, $23 billion in debt, currently. that is about the clearest indication we can have that it is not working in its present form. from the hearing we have held i am encouraged every member seems to agree on that. at one time, an ho-3 was said to have been the broadest, most inclusive form of insurance ever written. the standard home owners insurance policy not only covered a lot of perils such as fire and wind at one time. >> p-- provision said are prett broad and i don't know if that is still the case. but the question i have is a historical one if anyone can answer. and that is if flood was ever included in a standard property insurance policy before homeowner or otherwise? can any of you answer that question? >> not to my knowledge. >> can you repeat the in -- the question? >> was the peril of flood ever covered by a standard homeowners policy? was it ever covered? and the next question is when did it cease to be covered? >> when congress created the nfip in

. >> i express my appreciation to blaine leutkemeyer in efforts to get ahead of this issue a little bit. national flood insurance program currently $23 billion in debt, that is the clearest indication we ever have that is not working in its present form. from the hearings will help so far, i am encouraged that at least every member seems to be able to agree on that. at one time, age 03 was said to be the broadest, most inclusive form of insurance ever written, standard homeowner's insurance policy not only covered a lot of perils such as fire and wind at one time, it had liability coverage and if you can shoot the neighbor with a bow and arrow, that provision is pretty broad. don't know if that is still the case, still considered the broadest but the question i have is a historic one if any of you could answer it. and that is if flood was ever included in standard property insurance policy before, homeowners or otherwise. can any of you answer that estion? >> not to my knowledge. >> can you repeat the question? >> yes. was the peril of flood ever before coverage by age 03 policies? was