Are NFIP rates actuarially sound?
I see that they are risk-based, but does this mean that they are actuarially sound? I don't see how they could be affordable if they are actuarially sound.
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I see that they are risk-based, but does this mean that they are actuarially sound? I don't see how they could be affordable if they are actuarially sound.
Comments
I think I found the answer and it is no - they are not actuarially sound (NFIP typically has to subsidize rebuilding after a flood as rates are generally deficient).
Correct. I think you mean NFIP subsidized the rates.