During the reauthorization debate of the National Flood Insurance Program last Congress, an amendment was added to the House version that would include the Multiple Peril Insurance Act as part of the reauthorization and reform of the program.
As many will recall, this bill would create an option for the NFIP to sell wind and flood coverage in a single policy. The Senate opted not to include this provision as part of the NFIP reauthorization, leaving a conference committee to resolve differences. The conference committee did not reach resolution, and the NFIP must be reauthorized and reformed in the 111th Congress. It is unclear whether the NFIP reauthorization legislation introduced this Congress will contain the controversial multi-peril provision. However, we have learned that Congressman Gene Taylor will soon introduce the Multi-Peril Insurance Act, similar to HR 920, which NAMIC opposed in the last Congress.
Such legislation would run counter to the positive reforms needed within the NFIP that will be addressed later this year. By adding wind coverage to the NFIP, the program would double its exposure and future liabilities at a time when the program is already more than $18 billion in debt. Exposing the program to new coverages and liabilities puts the future of the NFIP in serious jeopardy.
When NAMIC learned that this legislation would soon be introduced, meetings, emails, and phone calls occurred, urging members of Congress to oppose this legislation. We expect Taylor to introduce the bill in March, and NAMIC staff, through a comprehensive education campaign and our powerful grassroots Congressional Contact Program, is committed to continuing the fight to defeat this legislation.
Direct questions to NAMIC Federal Affairs Director Kathy Mitchell.
Posted: Tuesday, February 24, 2009 12:00:00 AM.
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