Top

Flood Bill Possibly Reauthorized

May 5, 2008


Leadership of the United States Senate is poised to reconsider the National Flood Insurance Program (NFIP) reauthorization bill (S-2284) this or next week, according to an insurance industry source.

The bill was passed last October by the Senate Banking Committee.

It forgives the $17.3+ billion debt of the national flood program related to Hurricanes Katrina.

It does not hold a provision allowing the program to offer wind coverage to policyholders, passed the Senate Banking Committee in October 2007.

512951_wet_slide_photo_by_melodi-t.jpg

In exchange for paying off the program’s debt, the Senate bill called for updating flood maps and extension of a pilot program enabling the NFIP to charge actuarially-sound rates.

Previously, that provision, plus others, blocked action on the bill earlier as Louisiana & Mississippi Senators feared that the mandate to charge actuarial rates would make the program unaffordable to many of their residents.

In an April letter by the Louisiana and Mississippi senators, a new option materialized. If the Senate agrees to address their concerns and allow floor amendments to S-2284, the bill could be considered.

Industry trade groups still have concerns about the House bill.

For example, National Association of Mutual Insurance Companies continues to advocate for the legislation in its current form.

Buy One Dozen Assorted Roses, Get One Dozen Free

It does not wants any amendments—such as the inclusion of wind coverage, that would increase the exposure and liability of the program.

Article brought to you by BeSafeInsure.com
(Sources: National Underwriter, May 2, A.D. Postal)

367187_house_viktors-kozers.jpg

Related Articles on Be Safe Insure.com

Recent News on Insurance

Recent Articles Be Safe Insure.com

Site Search Tags:

Share and Enjoy:

Comments

Got something to say?







CRM Help Desk Software

Bottom