WASHINGTON–The chairman of the House Financial Services Committee plans to ask the Speaker of the House to begin the process of ironing out differences in the flood bill legislation passed by the two Houses of Congress.

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said Wednesday he plans to ask Speaker Nancy Pelosi, D-Calif., to appoint conferees so that differences between the House and Senate versions of legislation reauthorizing and reforming the National Flood Insurance Program can be resolved.

Rep. Frank wrote the memo to members of his committee against the background of major differences between the House and Senate versions of the bill and insurance industry trade group opposition to language in the House bill that would add wind coverage to the program.

Rep. Frank acted in response to the Senate May 13 passage of the Flood Insurance Reform and Modernization Act of 2008 (S-2284). It extends the program until 2013 and pays off the $17.5 billion debt the program ran up in settling claims from Hurricanes Katrina and Rita in 2005.

Spokesmen for Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee and an author of the Senate bill, did not respond to requests for comment.

Congress must act quickly because the authorization for the NFIP expires Sept. 30.

There are many differences between the two bills, but the key one is that the House bill, H.R.-3121, contains a provision adding wind coverage to the program.

Responding to Rep. Frank's memo, Dennis Kelly, a spokesman for the American Insurance Association, said the association supports the underlying reforms to the NFIP contained, albeit in different forms, in the two bills, “but, as we have stated, we prefer the Senate version because it does not contain provisions adding wind coverage to the NFIP.”

Justin Roth, a senior director at the National Association of Mutual Insurance Companies, said NAMIC “remains very optimistic that both chambers will come to an agreement on the final package prior to the September 30th expiration.”

“NAMIC continues to strongly oppose the inclusion of wind into the NFIP that is found in the House bill, and encourages the negotiators of the final language to keep that provision out of the final bill,” Mr. Roth said, adding that the Senate bill “better addresses many of the key reforms that NAMIC has advocated for.”

Charles Symington, senior vice president, government affairs, for the Independent Insurance Agents & Brokers of America, said he was “very encouraged” that Chairman Frank and Speaker Pelosi are planning to reconcile the differences between the House and Senate bills.

He added that the program “is essential for millions of consumers” and “that Congress [needs to] act expeditiously to extend and reform the program.”

He said he hopes the conferees “will include needed coverages for consumers such as optional business interruption and additional living expenses” in the final legislation.

Retaining the wind provision in the House bill represents an uphill battle because the Senate strongly rejected adding such a provision, 73-19, when it took up the measure.

However, the Senate bill does contain provisions opposed by the industry. One of those provisions establishes an “ombudsman” within the Federal Emergency Management Agency whose job would be to ensure that the 93 insurers participating in the program do not make it pay for wind claims private insurers should pay for.