You are here:HomeIssuesFlood Insurance2003OMB to Review Proposed FEMA Flood Regs at PIA Request

OMB to Review Proposed FEMA Flood Regs at PIA Request

PIA's legal counsel has informed us that as a result of PIA's request, the Office of Management and Budget has asked to review proposed changes...
December 23, 2003

PIA's legal counsel has informed us that as a result of PIA's request, the Office of Management and Budget has asked to review proposed changes to regulations governing the National Flood Insurance Program (NFIP). In November, PIA filed formal comments in opposition to one of the proposed rule changes that, if adopted, would effectively designate independent property and casualty insurance agents as the agent of the insured, and not the agent of the Write-Your-Own ("WYO") insurer, for purposes of selling and servicing policies under the National Flood Insurance Program.
 
Last week, OMB informed the Federal Emergency Management Agency (FEMA), which administers the flood program, that they consider the proposed regulations to be a significant enough market change to warrant OMB review. PIA's counsel notes that although OMB has requested the review, that does not mean FEMA will agree to the request.

What It Means to Agents: Many PIA members sell flood insurance to their clients and if the specific rule we have objected to is adopted, it will create additional exposures and make it far more difficult for them to meet their clients' needs.

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