PIA Hails Passage of 5-Year Flood Insurance Bill
WASHINGTON – The National Association of Professional Insurance Agents (PIA) is hailing passage of a five-year reauthorization bill for the National Flood Insurance Program (NFIP). Both the House and the Senate Friday passed bipartisan legislation that includes the five-year extension of the NFIP, along with a series of key reforms.
“This is a watershed moment for flood insurance,” said Andrew C. Harris, president-elect of PIA National.
“Professional insurance agents play a vital role in delivering the federal flood program to consumers, making the program more efficient and stable and helping consumers understand a very necessary but often misunderstood coverage,” Harris said. “For too long, Congress had been unable to agree on a path forward to long-term certainty. We congratulate Congress for finally breaking the legislative logjam and achieving meaningful consensus that puts the National Flood Insurance Program on a firm footing.”
PIA has been actively lobbying for passage of long-term reauthorization and reform of the NFIP for several years.
The House passed the bill with a 373 to 52 vote, while the Senate passed the bill 74-19. President Obama signed the bill into law on Friday, July 6.
Reform and a five-year renewal of the NFIP have been a top priority issue for PIA. Since 2002, there have been 15 short-term extensions of the NFIP. In 2010 alone, NFIP lapsed four separate times and flood insurance could not be purchased for a total of 53 days. During the lapses, real estate deals in which flood insurance was required were delayed. The enactment of the new flood bill finally removes the uncertainty which has beset the flood insurance program for many years.
The reforms contained in the new flood bill are projected to generate an additional $2.7 billion in new revenues over 10 years, according to the Congressional Budget Office.
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.