NU Online News Service, April 21, 4:14 p.m.EDT

WASHINGTON–The House Financial Services Committee hasdecided to delay action on legislation providing a long-termreauthorization of the National Flood Insurance Program untilTuesday.

The decision today came as a hearing on flood and catastropheissues was taking place before the Housing and CommunityOpportunity Subcommittee of the House Financial ServicesCommittee.

At the hearing, representatives of various industry trade groupsurged prompt action on legislation providing a long-termreauthorization of the program. After being allowed to lapse onMarch 28 the flood insurance program was given a short-term renewallast Friday of 45 days.

The reauthorization bill is the Flood Insurance ReformPriorities Act of 2010.

Action on two other bills was also delayed until Tuesday. Theyare the Homeowners Defense Act of 2009, H.R. 2555, and the MultiplePeril Insurance Act of 2009, legislation sponsored by Rep. GeneTaylor, D-Miss. The Multiple Perils bill would add wind to the NFIPprogram.

At the hearing, Rep. Taylor said there are "simple reasons" windwill be added to the program.

"Homeowners and business owners in coastal communities need tobe able to buy hurricane insurance that will cover hurricane damagewithout needing to hire lawyers and engineers to engage inprolonged disputes over what portion of the damage was caused byflooding and what portion was caused by wind," he said.

"As long as wind and flood coverage are in separate policies,there will be gaps in coverage and disputes over causation afterhurricanes," he added.

But Kathy Mitchell, a federal affairs director at the NationalAssociation of Mutual Insurance Companies, argued against the billsponsored by Rep. Taylor.

"Congress should be wary of adding windstorm coverage to theprogram, which could outweigh the benefits of the reforms and sinkthe entire NFIP deeper into debt," she said.

In other testimony, officials for the Independent InsuranceAgents and Brokers of America generally praised the NFIPreauthorization bill, saying, "Although IIABA has some recommendedimprovements to the draft legislation, the underlying long-termextension is vital to provide stability and security toconsumers."

The IIABA said that of particular concern "is the litany ofshort-term extensions the NFIP has experienced over the last yearand a half."

Charles Symington, IIABA senior vice president for governmentaffairs, said there "have been seven short-term extensions in thelast 18 months, and the program is once again scheduled to expireon May 31, 2010 unless Congress approves an eighth such extensionor acts on a long-term bill."

He noted, "These short-term extensions have unfortunately led totwo expirations of the program just in the last few months, andtoday the IIABA testified that the lack of a long-term extension isof paramount concern."

In a letter to the committee, David A. Sampson, president andCEO of the Property Casualty Insurers Association of America, madethe same point. "We need a long-term, sustainable solution to theflood program," he said.