A bill by Rep. Gene Taylor (D-Miss.), the Multiple Peril Insurance Act (H.R. 1264), was pulled from the House floor on July 22 just before a scheduled vote. The bill would require the National Flood Insurance Program (NFIP) to offer optional wind coverage along with flood policies. PIA actively opposed H.R. 1264 and was heartened by the bill’s failure to advance in the House.

“We are encouraged that the House leadership pulled H.R. 1264 from the floor and we are optimistic that opposition to this bill will continue to grow,” said PIA National Director of Federal Affairs Mike Becker. “This legislation may be well-intentioned, but it is counter-productive. A federal government takeover of wind insurance is unjustified and unwarranted. As House members examine H.R. 1264 they are realizing that it is not a good idea and support for it is eroding.”

PIA sent a letter to every House member in opposition to H.R. 1264, urging them to vote “no.” An array of insurance, business, consumer and environmental groups all opposed the bill. Shortly before the scheduled vote, the Obama administration released a statement opposing the legislation.

“This is another example of the federal government taking over an insurance product, one that’s currently offered in the private market,” said Becker in an interview with BestWire, pointing out the deep debt the NFIP is already in. “It’s not the time to expand the program when they’re having trouble staying afloat. We are encouraged that this wind bill can’t even get through the House, let alone the Senate.”

Wind Bill Yanked Before Final Vote (BestWire 7/23/10) (PIA quotes)
 
Bill To Add Wind Pulled From House Floor (National Underwriter 7/23/10) (PIA quotes)

Should NFIP Include Hurricane? (Fort Lauderdale Sun-Sentinel 7/22/10) (PIA quotes)

PIA Opposes NFIP Expansion to Wind (PIA press release 7/21/10)

July 28, 2010