Claims News Service, Feb.13, 10:07 a.m .EST — The Senate voted to extend the borrowing authority of the National Flood Insurance Program to $21.2 billion — good news to organizations like The Independent Insurance Agents & Brokers of America (the Big "I"), according to a recent release.
Congress first extended the initial borrowing limit to $1.5 billion from the U.S. Treasury immediately after Hurricanes Katrina and Rita, an inadequate amount for meeting the more than $23 billion in anticipated claims.
A November 2005 Federal Emergency Management Agency memo informed Write-Your-Own insurance companies that finances were suspended until further Congressional action. Later in November Congress increased the borrowing authority to $18.5 million, which was expected to run out in the near future.
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