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NFIP Borrowing Authority Request Will Be $25 Billion

The Obama administration will ask Congress to raise the National Flood Insurance Program’s (NFIP) borrowing authority to $25 billion, according to sources cited by the National Underwriter...
November 21, 2012

The Obama administration will ask Congress to raise the National Flood Insurance Program’s (NFIP) borrowing authority to $25 billion, according to sources cited by the National Underwriter. The administration wants to move promptly on the issue to ensure no repeat of what happened in late 2005 in the aftermath of Hurricane Katrina, according to Don Griffin, vice president of personal lines at the Property and Casualty Insurers Association of America and head of the industry’s flood insurance coalition. The NFIP’s current borrowing is $20.775 billion. The administration will seek to add an additional $4.025 billion.

Mississippi insurance commissioner and head for the flood insurance working group of the National Association of Insurance Commissioners, says an informal survey of congressional delegations indicates concern in Congress about revisiting the program so soon after Congress just passed legislation in July extending the program until September 2017. But Steve Harty, president and CEO of National Flood Services, Inc., (NFS) in Kalispell, Montana, which provides back office services to write-your-own companies, says Congress will have to act. “This is not an entitlement program,” Harty stated. “This is a contract with the American people.”

President to Ask for NFIP Borrowing Increase (National Underwriter 11/16/12)

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