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PIA Opposes Cut to WYO Flood Reimbursement

The House Financial Services Committee held a hearing June 7, “Flood Insurance Reform: A Taxpayer’s Perspective,” focused on reauthorization of the National Flood Insurance Program. The NFIP is set to expire on Sept. 30. A series of six draft bills have been released to reauthorize the program which renews the program and proposes a series of reforms...
June 7, 2017

The House Financial Services Committee held a hearing June 7, “Flood Insurance Reform: A Taxpayer’s Perspective,” focused on reauthorization of the National Flood Insurance Program (NFIP). The NFIP is set to expire on Sept. 30. A series of six draft bills have been released to reauthorize the program which renews the program and proposes a series of reforms.

One of the bills, the “National Flood Insurance Program Integrity Improvement Act of 2017,”  would lower the Write-Your-Own (WYO) reimbursement percentage which is used by carriers to pay administrative expenses as well as agent commissions, among other things. PIA National has signed a joint statement in opposition to any proposal to reduce and cap the WYO reimbursement rate.

[“T]he the WYO program is an important public-private partnership that effectively delivers flood insurance to nearly five million consumers,” the statement says in part. “The Agent Trade Associations oppose capping WYO compensation as proposed in the ‘NFIP Integrity Improvement Act’ as it would disrupt the flood insurance markets and limit consumer choice.”

“A cut to the reimbursement rate for Write Your Own insurance companies would likely trickle down to independent agents who sell this very complicated and vital line of insurance,” said Jon Gentile, vice president of government relations of PIA National. “Any proposal to reauthorize the NFIP that would impede agents’ active engagement in selling flood insurance should be rejected.”

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