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Group of House Members Hopes to Delay NFIP Rate Increases Four Years

A multistate, bipartisan group of U.S. House members working to block large increases in flood insurance premiums for their constituents is developing a new strategy...
October 24, 2013

A multistate, bipartisan group of U.S. House members working to block large increases in flood insurance premiums for their constituents is developing a new strategy. The group hopes to draft legislation to delay the rate hikes until two years after the Federal Emergency Management Agency (FEMA), which administers the National Flood Insurance Program (NFIP), completes an affordability study. The lawmakers do not expect that study to be completed for another two years, meaning a potential delay of four years. By that time, the coalition hopes the 2012 flood insurance reform law, which led to the higher than anticipated rate increases for thousands of policyholders, can be reworked. Meanwhile as the U.S. Senate crafted legislation to end the government shutdown and raise the federal debt ceiling, the National Association of Mutual Insurance Companies (NAMIC) sent Senate leaders a letter urging them to resist calls to delay or rescind scheduled flood insurance rate increases. Apparently, there was concern by some members of NAMIC that the Senate would try to insert such language in the pending legislation to end the shutdown. “We remain in full support of reforms to the NFIP made by the Biggert-Waters Act (BW-12) and oppose any efforts to delay or rollback pieces of the legislation,” said Jim Grande, NAMIC senior vice president of federal and political affairs.

New Strategy to Avert Flood Rate Increases (New Orleans Times-Picayune 10/18/13)

NAMIC: Don’t Delay NFIP Rate Increases (National Underwriter 10/18/13)

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