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PIA National Lauds House Approval of Increase in Borrowing Authority for NFIP

WASHINGTON, November 16, 2005 - The National Association of Professional Insurance Agents (PIA) today lauded the House of Representatives for approving an increase...
November 16, 2005

WASHINGTON, November 16, 2005  - The National Association of Professional Insurance Agents (PIA) today lauded the House of Representatives for approving an increase in the borrowing authority of the National Flood Insurance Program (NFIP).

The House approved H.R. 4133 by voice vote on November 16, 2005. The bill increases the borrowing authority of the NFIP by $5 billion. According to David Maurstad, director of the National Flood Insurance Program, the $5 billion will only cover claims through Thanksgiving.

"PIA thanks the members of the House for recognizing the urgency of this situation by taking this action today on the borrowing authority and making clear in their comments that more will be needed to meet ongoing NFIP claims obligations to federal policyholders," said PIA National Senior Vice President Patricia A. Borowski. "Now, the Senate needs to follow suit before adjourning for the Thanksgiving holiday." The Senate has yet to pass companion legislation increasing the NFIP's borrowing authority.

"Any delay in the Senate will effectively place a hold on the ability of the NFIP to ensure that valid claims that have already been filed are paid," Borowski said. "While we appreciate that some lawmakers want to enact needed improvements to the manner in which the flood program functions, the first priority must be payment to flood victims who were insured through the program, and have already suffered losses."

On November 15, PIA sent an updated series of proposals addressing NFIP reform to the members of the House Financial Services Committee, while reiterating that the funding extension must be dealt with on an emergency basis. The proposals build on those PIA already submitted to a subcommittee of the House Financial Services Committee on October 20, and to the Senate Banking Committee on October 18.

Founded in 1931, PIA is a national trade association which represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA will celebrate its 75th anniversary in 2006.