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Second NFIP Hearing, Bill Markup Scheduled

A House subcommittee will hold a second hearing on the National Flood Insurance Program April 1 and mark up draft legislation March 6, according to...
October 29, 2011

A House subcommittee will hold a second hearing on the National Flood Insurance Program April 1 and mark up draft legislation March 6, according to unnamed officials quoted by the National Underwriter. The April 1 hearing by the Subcommittee on Insurance, Housing and Community Opportunity of the House Financial Services Committee chaired by Rep. Judy Biggert (R-Ill.) will include the delayed testimony of Craig Fugate, administrator of the Federal Emergency Management Agency. Fugate missed the March 11 hearing because of the earthquake and tsunami in Japan.

The draft bill the agency will use as the basis for markup of legislation extending the NFIP calls for a five-year reauthorization of the program. The legislation also moves toward eliminating rate subsidies, indexing the maximum limits, providing for additional living expense and business-interruption coverages, and devising a method to address mapping issues. At this point, it does not address the NFIP's $37.5 billion debt, amassed mostly as a result of Hurricane Katrina.

PIA National filed comments on the draft of the Flood Insurance Reform Act of 2011 prior to the March 11 hearing. PIA endorsed the draft bill's call for a five-year reauthorization of the program coupled with reforms that include actuarially justified rates and market-based increases on maximum coverage limits; and advised against expanding the NFIP to include wind risks.

"PIA has a long history of supporting the National Flood Insurance Program (NFIP) and supports comprehensive reforms to make the program more sustainable," the letter states. "The program offers critical service to those affected by flooding events and provides the necessary coverage that the private market has been almost entirely unwilling to insure. We  remain ready and willing to work with you to implement the necessary reforms to make the NFIP stronger."

Read PIA's Letter to Chairman Judy Biggert on NFIP (3/10/11)

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