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PIA Praises House Committee Passage of Flood Insurance Reform Act of 2011

WASHINGTON, May 13, 2011 - The National Association of Professional Insurance Agents (PIA) praised the House Financial Services Committee for passing the Flood...
May 13, 2011

WASHINGTON, May 13, 2011  - The National Association of Professional Insurance Agents (PIA) praised the House Financial Services Committee for passing the Flood Insurance Reform Act of 2011 (H.R. 1309). The committee voted unanimously to approve the bill on May 13, 2011. The vote was 54-0.

"The unanimous vote by the House Financial Services Committee to extend the National Flood Insurance Program (NFIP) for a full five years and enact key reforms to put it on a firm financial footing is good news for taxpayers, consumers and the real estate market," said PIA National Executive Vice President & CEO Leonard C. Brevik.

"This vote demonstrates that there is broad, bipartisan consensus that the NFIP is a vital component of America's economic prosperity that provides protection from flooding to homeowners and business owners," Brevik said. "PIA strongly supports H.R. 1309. We urge the full House and the Senate to pass it without delay."

As passed by the House FSC, H.R. 1309 phases out the program's rate subsidies, gradually raises all premiums to reflect actual costs, improves the accuracy of flood maps and allows more public input into the mapping process, and encourages private insurer and reinsurer participation in the market. The bill also adds two new coverage options, ties policy limits to inflation, and sets higher deductibles for rate-subsidized properties.

The committee rejected an amendment that would have blocked the NFIP from offering two new optional coverage: additional living expenses (ALE) up to $5,000 aggregate and business interruption (BI) coverage up to $20,000 per property.

"We were pleased that the committee rejected the amendment that would have eliminated the options for additional living expenses and business interruption coverage, both of which will assist policyholders and make flood insurance coverage through the NFIP more marketable," said PIA National Director of Federal Affairs Mike Becker.

"The effort to achieve a broad, bipartisan consensus in support of key reforms to our nation's flood insurance program has taken many years," Becker said. "PIA congratulates the members of the House Financial Services Committee, including insurance subcommittee chairwoman Rep. Judy Biggert (R-Ill.), for crafting and approving an excellent flood insurance reform bill."

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM. PIA's web address is www.pianet.com.

 


 

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