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PIA-endorsed Private Flood Bill Passes House

PIA is applauding the U.S. House of Representatives for passing a bill designed to encourage a private flood insurance market...
April 29, 2016

PIA is applauding the U.S. House of Representatives for passing a bill designed to encourage a private flood insurance market. The House passed the Flood Insurance Market Parity and Modernization Act (H.R. 2901), in a bipartisan vote on April 26.

“This legislation seeks to encourage the development of a private flood insurance market, with strong consumer protections being overseen by state insurance regulators,” said PIA National Vice President of Government Relations Jon Gentile. “We thank the bill’s sponsors Reps. Dennis Ross (R-FL) and Patrick Murphy (D-FL) for their leadership on this important issue.” A companion bill, S. 1679, introduced by Senator Dean Heller (R-NV), awaits action in the Senate.

“PIA members from around the country were just in town for our Federal Legislative Summit asking members to support this measure. We are pleased Congress heard the voices of their constituents,” Gentile said.

The bill will expand flood insurance options for consumers by clarifying the definition of a private flood insurance policy as that which provides flood insurance coverage issued by an insurance company that is licensed and approved by the state insurance regulator. “It ensures that private flood insurance can be used to satisfy the National Flood Insurance Program’s (NFIP’s) continuous coverage requirement, an essential aspect of ensuring policyholders are not penalized for moving from one policy to another,” Gentile said.

PIA opposes the immediate privatization of the National Flood Insurance Program (NFIP), but supports sensible solutions for encouraging the growth of the private flood insurance market with measures like H.R. 2901. In addition, PIA supports the long-term reauthorization of the NFIP when it comes up for renewal in 2017. Encouraging the private flood insurance market is a good first step that we hope to see accomplished this year, understanding that, at present and in the near future, the private market is not a realistic replacement for the NFIP.

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