NU Online News Service, Dec. 18, 2:30 p.m. EST

WASHINGTON

The Senate overcame a procedural roadblock early today that sets the stage for passage on Saturday of legislation containing a provision reauthorizing the National Flood Insurance Program until Feb. 28.

And according to officials of several insurance industry trade groups, the Senate is expected to act by unanimous consent to extend until Dec. 23 the program which expires today.

The stopgap provision in a so-called continuing resolution was started by the House on Wednesday to ensure that the program did not lapse.

That would have had an impact on closings of home sales and on existing mortgages in which banks require flood insurance to be in force in order for a homeowner to maintain a loan.

Early today Senate action invoked cloture on the Defense Appropriations Act, which contains the extension of the NFIP, until Feb. 28.

In response, Blain Rethmeier, a spokesman for the American Insurance Association, said, "It's understandable that the financial crisis and health care reform have overtaken NFIP reauthorization."

That said, he added, "it remains a top priority issue for AIA and we look forward to working through more substantive and comprehensive NFIP reforms."

Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies, said, "By punting on the issue and simply lumping a basic extension in with other spending bills, lawmakers have created a situation where the National Flood Insurance Program can be held hostage solely for unrelated political reasons."

Mr. Grande added, "This only underscores the need for Congress to address the problems facing the National Flood Insurance Program and enact a long-term reauthorization with much-needed reforms."

Special Reports /

NFIP Heading For Feb. 28 Extension

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