Todayâ€™s News: AIG No Longer Being Probed and FEMA Offers Low-Cost Flood Insurance
It seems that life insurance company AIG has been let off the hook in the criminal probe the U.S. Justice Department initiated. For those who live in risky floodplain areas, FEMA is offering low-cost flood insurance options.
AIG Is No Longer Being Probed by the U.S. Justice Department
Recently, the U.S. Justice Department announced that it has concluded its criminal probe into AIG and has chosen not to pursue charges against the insurer or its senior executives. The department pursued the probe originally to determine whether Joseph Cassano, the company’s head, had misled investors when he stated in 2007 that its portfolio of credit default swaps, which led to AIG’s fall and contributed to the financial crisis,Â would not produce significant losses.
After a two-year investigation, the department determined that there wasn’t enough evidence to bring criminal charges against the company. (CNN Money)
FEMA Offers Low-Cost Flood Insurance for 2 Years
FEMA has been redrawing floodplain maps all over the country, causing homeowners to purchase flood insurance who never had been required to purchase it previously. After many complaints surfaced about the redrawn maps, FEMA decided to help those struggling to pay for coverage by offering low-cost flood insurance to homeowners who live in newly-remapped areas for at least the next two years. FEMA says theÂ cost could be as low asÂ $300 annually, which is up to four or five times lower than what is offered by private insurers.Â (US Insurance Online)