The Senate Banking Committee will hold a hearing January 25 on proposals to reform the National Flood Insurance Program (NFIP). In November, the House Financial Services Committee passed the National Flood Insurance Program Commitment to Policyholders and Reform Act (H.R. 4320) sponsored by committee chairman Rep. Mike Oxley (R-Ohio) and ranking member Rep. Barney Frank (D-Massachusetts). The bill has yet to reach the House floor.
H.R. 4320 incorporates some of the 22 reform proposals that were developed and adopted on November 7, 2005 by the Flood Insurance Producers National Committee (FIPNC) during a meeting with senior FEMA and NFIP representatives held at PIA’s headquarters.
In formal comments filed October 20, 2005 with the House Financial Services Committee, PIA National made five specific preliminary recommendations:
- An increase in building property insurance limit maximums;
- A system of automatic coverage for contents in non-commercial properties;
- Adding or coordinating flood coverage for commercial policies in the area of business interruption insurance;
- A separation of insurance under NFIP from post-disaster government assistance;
- Continued multi-year authorization of the flood program by Congress for its various authorities.
What It Means to Agents: PIA wholeheartedly supports the 22 reform proposals that were developed and adopted on November 7, 2005 by the Flood Insurance Producers National Committee (FIPNC) and will continue to press for adoption.
PIA Makes Flood Insurance Recommendations (KVVU-TV FOX-5, Las Vegas 10/19/05)
PIA Agents Call for Improvements to Federal Flood Program (Insurance Journal 10/19/05)
Full Text of PIA Comments on NFIP Filed with Congress (PDF, 10/20/05)
January 24, 2006