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Bills Filed to Delay NFIP Premium Increases

Efforts are underway in Congress to delay the implementation of rate changes imposed as a result of the Biggert-Waters Flood Insurance Reform Act of 2012...
June 18, 2013

Efforts are underway in Congress to delay the implementation of rate changes imposed as a result of the Biggert-Waters Flood Insurance Reform Act of 2012. A bill introduced by Sen. Mary Landrieu (D-La.) that would block rate increases until six months after the Federal Emergency Management Agency (FEMA) conducts an affordability study on higher premiums has failed to get a vote scheduled. Meanwhile last week, a bill sponsored by Sen. Thad Cochran (R-Miss.) and David Vitter (R-La.) that would delay the reform provisions of the 2012 flood law by a minimum of two years was introduced.

“We are encouraged that the Vitter-Cochran bill addresses key concerns while not eliminating the move toward risk-based rates,” PIA noted in remarks by Mike Becker, vice president of federal affairs, which were excerpted in an article in the National Underwriter. “At the same time, there are real concerns that the phase-in of increased rates we are seeing proposed thus far imposes a considerable burden on homeowners. While we support risk-based rates, consumer affordability must be taken into consideration and the Vitter-Cochran bill takes steps in this regard.”

“The bill also places additional requirements on FEMA to publish their projected base flood elevations in the Federal Register before implementing them. We are also encouraged that this bill expands the Stafford Act to include mitigation assistance for flooding events. PIA has long supported efforts to encourage flood mitigation.”

Bills Seek NFIP Rate Delay (National Underwriter 6/11/13)

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