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PIA Opposes House Flood Insurance Legislative Package

PIA National has taken a strong stand against a package of draft bills in the House to reauthorize the National Flood Insurance Program that cuts insurer reimbursement and threatens agent compensation...
June 14, 2017

PIA Opposes House Flood Insurance Legislative Package

PIA National has taken a strong stand against a package of draft bills in the House to reauthorize the National Flood Insurance Program (NFIP) that cuts insurer reimbursement and threatens agent compensation.

Despite the fact that this legislation includes several provisions that PIA National supports— such as including a multi-year reauthorization, improving the claims process, and taking steps to encourage the private market to sell policies—we cannot support the House legislative package because the proposal would lower the Write-Your-Own (WYO) reimbursement percentage from the current 30.9 percent cap to 25 percent. This reimbursement is used by carriers to pay agent commissions, and 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.

“PIA rejects any proposal to reauthorize the NFIP that would impede agents’ active engagement in selling flood insurance,” said Jon Gentile, vice president of government relations of PIA National. “Homeowners and business owners alike turn to their independent insurance agents for help in protecting their property from losses due to flooding. That’s why PIA will oppose this legislative package that lowers the WYO reimbursement rate without protections for agents.”

Last week, PIA National sent PIA members an Action Alert to members asking them to contact Congress and tell them not to support any bill that could lead to agent commissions being cut. On June 9, PIA National sent this document to Congress, highlighting our opposition to the House flood legislative package. On June 12, PIA National issued this press release.

UPDATE: A markup of NFIP legislation that had been scheduled for Wednesday June 14 has been postponed after a lone gunman shot and wounded at least one member of Congress at a community ballpark in Alexandria, Virginia where lawmakers were practicing for a charity baseball game. House Majority Whip Steve Scalise (R-LA) was shot in the hip; his injuries do not appear to be life-threatening, police said. Alexandria Police Chief Michael Brown said five people were transported from the park to local hospitals.

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