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Bipartisan Flood Bill Introduced in Senate

The leaders of the Senate Banking Committee released on Tuesday evening a bipartisan bill to keep the federal flood insurance program funded for six years and create new risk mitigation procedures for communities to follow...
July 18, 2017

The leaders of the Senate Banking Committee released on Tuesday evening a bipartisan bill to keep the federal flood insurance program funded for six years and create new risk mitigation procedures for communities to follow. Senate Banking Committee Chairman Mike Crapo (R-Idaho) and ranking Democrat Sherrod Brown (D-Ohio) said the bill would serve as a template for consideration by the whole committee, and could likely be amended.

The Senate bill doesn’t include core provisions from a House proposal that would encourage development of private market flood insurance. At this point, it also does not call for cuts in the reimbursement rate for Write Your Own (WYO) flood insurance carriers who service policies backed by the National Flood Insurance Program (NFIP). However, amendments are likely.

The House is set to soon consider a package of seven bills to reauthorize the NFIP for five years, one year less than the Senate bill. PIA announced its opposition to the entire package because it calls for a cut in the (WYO) reimbursement percentage, from which agent commissions are paid. Most WYOs have acknowledged that, for them to remain in the program, they will likely pass any cut to the WYO rate on to agents in the form of commission cuts, as was done in healthcare.

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