Why Is the National Flood Insurance Program (NFIP)not Actuarially Sound

Why is the National Flood Insurance Program (NFIP) not actuarially sound?

A) Flood is such a catastrophic peril that no one can ever accurately predict the expected losses
B) The private insurance market charges rates that are inadequate to fully pay for flood losses
C) Congress authorized inadequate insurance rates to encourage participation in the program
D) Congress authorized inadequate insurance rates due to political pressure from elderly Floridians

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