House Financial Services Committee Chairman Barney Frank (D-Mass.) plans to ask Speaker Nancy Pelosi (D-Calif.) to appoint conferees so that differences between the House and Senate versions of legislation reauthorizing and reforming the National Flood Insurance Program can be resolved. The conference will come against the background of major differences between the House and Senate versions of the bill and insurance industry trade group opposition to language in the House bill that would add wind coverage to the program.

On May 13, the Senate passed Flood Insurance Reform and Modernization Act of 2008 (S. 2284). It extends the program until 2013 and pays off the $17.5 billion debt the program ran up in settling claims from Hurricanes Katrina and Rita in 2005. The House bill, H.R. 3121, contains a provision adding wind coverage to the program but the Senate bill does not. In the Senate, a provision to add wind coverage was defeated 73-19. PIA opposes adding wind to the NFIP program. Congress is under pressure to act soon, because authorization for the NFIP expires September 30.

What It Means to Agents:  PIA will continue to fight for reauthorization of NFIP (set to expire 09-30-08); forgiveness of the FEMA/NFIP debt; and this wave of NFIP reforms (with more to come in the future). PIA will continue to oppose adding wind or any other attempt to “load up” this bill as the price of passage.

Flood Bill Moving To Conference Committee (National Underwriter 6/5/08)

June 10, 2008