WASHINGTON–The House voted last night to extend the current National Flood Insurance Program without changes until next year when work on legislation to reform NFIP will resume.

The measure now goes to the Senate, which can act on the flood program extension measures in two different formats the House has supplied. One is a stand-alone bill approved on Tuesday; the other, passed yesterday, is part of a continuing resolution to finance government activity.

Yet another House bill on the flood program was passed in October, which would provide wind damage coverage as well as flood. The Senate has refused to pass this legislation. NFIP will expire at the end of the month.

The insurance industry is reluctantly accepting the latest House actions on the flood program. Both would keep NFIP as is until April 30, 2009. Carrier groups prefer the Senate flood program bill that would eliminate the program's $17 billion-plus debt that piled up following storm claims from Hurricanes Katrina and Rita in 2005.

The Senate is expected to act on the House bill by next Monday.

In sending over its measures on the flood program the House was seen to be signaling the Senate that its decision to force the House to accept its version of a flood program reform bill (H.R. 3121), that would extend the program for seven years, is unacceptable.

Unless action is taken, the flood program is due to expire Sept. 30 when the current fiscal year ends.

The continuing resolution extending the current program was part of a measure appropriating more than $630 billion needed to keep the government going until next March 6.

Besides appropriating funds for federal agencies whose budget for the fiscal year beginning Oct. 1 have not been approved yet this year, it provides nearly $23 billion in hurricane and flood relief as well as $25 billion in loan guarantees for the nation's auto manufacturers. The continuing resolution was approved on a vote of 370-58.

“We prefer a fiscally sound and responsible long-term extension, but a short-term extension is a must to make sure people at risk of loss have coverage they need after the Sept. 30 expiration date,” said American Insurance Association spokesman Dennis Kelly.

Charles Symington, senior vice president of government affairs for the Independent Insurance Agents and Brokers of America, said the agent trade group “is very pleased that the House recognizes the need to ensure that the NFIP does not expire.”

He added, “While we prefer a longer-term extension, we applaud the House's passage of the interim legislation.”

David A. Sampson, president and chief executive officer of the Property CasualtyInsurers Association of America, agreed.

“While it would certainly be preferable for Congress to pass a long-termextension with much-needed reforms, the most important thing we must doright now is to make sure that the NFIP does not lapse on Sept. 30th.”

He said expiration of the program “could have dire consequences,” not just forpolicyholders but also for the nation's economy at large.”

“We will continue to urge the House and Senate to reach agreementexpeditiously on a long-term extension, which would be the best solutionfor renewing and reforming this vital program and restoring its fiscalsoundness,” Mr. Sampson added.

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