WASHINGTON (September 8, 2011) The National Association of Mutual Insurance Companies (NAMIC) urged the Senate to move quickly to vote on legislation to reform and extend the National Flood Insurance Program(NFIP) approved by the Senate Banking committee today.
“With just a few weeks remaining before the NFIP’s September 30 expiration date, there’s no time to lose,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “Congress must act swiftly to ensure that the program is maintained and avoid any uncertainty that could affect our economy.”
The Flood Insurance Reform and Modernization Act of 2011 was approved by the Senate Banking Committee unanimously by a voice vote. The bill would extend the National Flood Insurance Program for five years. It would phase in premium rates that more accurately reflect the risk facing a property, allows for the NFIP to build reserves and modernize flood maps, among other provisions.
“For too long, the NFIP has been run as a government subsidy rather than an insurance program, and the results have been disastrous,” Grande said, noting the programs near $18 billion debt to the Treasury. “The bill approved by the committee today would move the NFIP towards a stronger financial standing and a better structure to help protect homeowners and taxpayers going forward.”
With the committee’s approval, the bill now moves to the Senate floor. If approved by the full Senate, Grande said, a conference could be arranged with members of the House to iron out differences between the bill and its counterpart in the House, H.R. 1309.
“The House and Senate should be able to swiftly reach agreement on many of the provisions in the two bills,” Grande said. “As we’ve seen in recent weeks, flooding can strike nearly anywhere in the country, causing severe damage. A stronger, stable National Flood Insurance Program is in everyone’s best interest.”
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Posted: Thursday, September 08, 2011 11:32:04 AM.
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