How are the National Flood Insurance Program (NFIP) payments caused by natural disasters such as Hurricane Katrina treated in the NIPAs?

In the case of Hurricane Katrina, substantial damage due to flooding occurred, particularly in New Orleans. Many of the affected properties were covered by the National Flood Insurance Program (NFIP) which is classified as a government enterprise in the NIPAs. Consistent with the treatment of private insurance companies, the benefit payments made by the NFIP in response to catastrophic events are treated as capital transfer payments. (See also FAQ#55 "How are GDP and related income measures of the national accounts affected by a disaster?")