Claims News Service, Jan. 8, 11:46 a.m. EST — A recently released report from U.S. Representatives Gene Taylor (Miss.) and Charlie Melancon (La.) is calling for independent adjusters to be involved in the investigation and reporting process for claims involving the National Flood Insurance Program. Taylor and Melancon are the respective chairman and vice chairman of the Hurricane Katrina Task Force.

In the 18-page report, entitled "Katrina and Beyond," the current claim process is described as having "an obvious conflict of interest" for insurance company adjusters, who decide whether the government or their employers should pay the claims made to the National Flood Insurance Program (NFIP).

The report explains that NFIP allows insurance companies to sell flood policies and adjust flood claims that are financially backed by federal taxpayer dollars. Because of this, insurance company adjusters could have competing interests when deciding whether claims should be billed to the federal flood insurance program or to the insurance companies that employ them, train them, and advise them on the interpretation of their policies.