NU Online News Service, Dec. 02, 2:16 p.m.EST

WASHINGTON—The Senate is preparing to vote on legislation nextweek which would extend the current National Flood InsuranceProgram for at least six months, confirming that the outlook for along-term extension for the program any time soon remains cloudy atbest.

Officials of the National Association of Mutual InsuranceCompanies (NAMIC) say the Senate leadership was working on a billthat would extend the program until May 31.

Action is needed promptly because the current extension ofNational Flood Insurance Program (NFIP) expires Dec. 16.

Matt Gannon, vice president of government affairs at NAMIC, sayswhether the extension of a continuing resolution extending allgovernment operations until then, or as a separate bill, won't beknown until late Monday.

An extension until May 31 is more likely than passage oflegislation filed Thursday by Sen. David Vitter, R-La.

Vitter's bill, S 1864, would extend the program until Sept. 30,Gannon says.

At the same time, the Senate Banking Committee is expected tofile with the full Senate today a bill reported out by thecommittee Sept. 8.

Gannon said the short-term extension is needed because it isunclear when the Senate will clear time for floor debate on thelegislation containing the long-term extension, but such action isunlikely this year.

If extended, the next short-term bill will mean that, since2002, there have been 13 last-minute reauthorizations of the NFIP,and on four occasions the program was allowed to lapse for extendedperiods of time.

However, that bill does not contain any portion of an amendment,proposed by Sen. Roger Wicker, R-Miss., that would deal with thecontroversial wind-vs.-water issue.

Rick Curtsinger, a spokesman for Wicker, says the filing wasexpected. He said the Wicker provision to address thewind-vs.-water issue in only slab cases is still on track to beadded when the debate begins.

That is inconsistent to what the leadership of the committee,Sen. Tim Johnson, D-S.D., and Sen. Richard Shelby, R-Ala., chairmanand ranking minority member of the panel, told Wicker Sept. 9, theday after the banking panel passed its version of legislation thatwould extend the program until Sept. 30, 2016.

Tom Santos, vice president of federal affairs at the AmericanInsurance Association (AIA), acknowledges, “In the short-term it iscritical that the program not be allowed to lapse. Anothertemporary extension may be necessary to give Congress the time itneeds to enact a longer term bill.”

“AIA is pleased that the Senate Banking Committee will file itsNFIP reform bill,” he adds. “This is an important step in theprocess toward enacting a long-term reauthorization.

But, he said, AIA will continue to advocate for a long-termreauthorization of the NFIP to protect consumers and help increasestability for real estate transactions and policyholders.

“Necessary reforms include movement toward risk-based premiumsand reduced price subsidies,” Santos said.

Charles Symington, senior vice president of government affairsfor the Independent Insurance Agents and Brokers of America, saidthe trade group “greatly appreciates” the Senate Banking Committeefor formally filing the Flood Insurance Modernization Act in theSenate.

“This bipartisan bill unanimously passed the Senate BankingCommittee, and we urge Senate leadership to schedule floor time fordebate on this needed legislation at the earliest opportunity,”Symington said.

Additionally, he said the IIABA “appreciates the ongoing effortsby Sen. Vitter and others to ensure that there is a short-termextension of the NFIP in order to avoid a lapse in the program thatwould be harmful to the market and consumers.”

Ben McKay, senior vice president of federal government relationsfor the Property Casualty Insurers Association of America (PCI),said, “We are pleased the Sen. Vitter is calling for a floodinsurance extension through September of next year.”

He said that, “Our priority is preventing another NFIPlapse.

“However, the proposed extension of the flood program does notalleviate the need for a long-term reauthorization.” McKaysaid.