PIA Takes the Lead in Support of Expanded NFIP Borrowing Authority
PIA has assumed a leading position as advocate for increasing the borrowing authority of the National Flood Insurance Program (NFIP), so it can pay the claims of insured property owners who suffered damage from Tropical Cyclone Sandy.
On Nov. 15, the PIA National Government Affairs Committee (GAC) committee unanimously passed a resolution supporting an expected increase and pledged to lobby Congress to pass it. On December 7, the Obama administration submitted a supplemental budget request to Congress asking that NFIP borrowing authority be increased 50 percent, to $30.4 billion. PIA issued a public statement in support of the request. Both the National Underwriter and A.M. Best’s Best’s News published articles detailing PIA’s stance.
PIA points out that the federal government must indemnify losses insured by the NFIP. “Not paying valid claims is simply not an option,” said PIA National President Andrew C. Harris, noting that apart from Katrina, the program has generated enough funds to pay ordinary claims. “The federal government has both a legal obligation and a moral imperative to pay to indemnify policyholders for their covered flood losses in policies backed by the NFIP.”
PIA serves on working groups formed by the Flood Insurance Producers National Committee (FIPNC) and the Institute for Business and Home Safety (IBHS) tasked with accomplishing as many of the reforms mandated by the Biggert-Waters Flood Insurance Reform Act of 2012 as possible for a January 1, 2013 start date.
PIA Supports President’s Request on NFIP Borrowing (National Underwriter 12/11)
Growing Industry Support for Upping NFIP’s Borrowing Authority (Best’s News 12/12) (subscription)