NU Online News Service, June 25, 3:05 p.m. EDT

The Senate again failed to move a tax extenders bill containing a National Flood Insurance Program (NFIP) extension, but insurance industry representatives said the Senate will likely take up a separate extension bill the week of June 28.

In a June 24 vote, Senators fell three votes short of the 60 required to limit debate on H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010.

The bill deals with extensions of jobless benefits and business tax breaks among many other provisions, but Section 601 would extend the NFIP until Dec. 31, 2010.

The bill has been held up over concerns that it would add to the deficit.

Matt Brady, spokesman for the National Association of Mutual Insurance Companies, said the June 24 vote was 57-41, with two senators not voting. He noted it is possible the Senate will take up the measure again next week.

But the fate of the NFIP may rest in a separate, simpler bill passed June 23 by the House.

That bill, H.R. 5569, called the National Flood Insurance Program Extension Act of 2010, would extend the NFIP until Sept. 30, 2010 and is free of the other controversial provisions holding up the tax extenders bill.

A source at the Property Casualty Insurers Association of America said the bill, which was introduced by Rep. Maxine Waters, D-Calif., will "most likely" be taken up the week of June 28, and added that the bill has been hotlined and so it should move fast when it is considered.

A bill is hotlined when it is ready to be considered under unanimous consent. Senate leaders notify members, and give them a limited of time to object. If no objections are registered, the bill passes.

Blain Rethmeier, senior vice president, Public Affairs for the American Insurance Association, said the industry moved forward and helped create momentum behind the Waters bill because of the continued logjam over the tax extenders bill.

He said it should be "relatively easy" to get agreement on a straight extension.

Mr. Brady also said the bill should have little to no opposition.

Mr. Brady noted that there is also legislation, H.R. 5114, that passed the House Financial Services Committee in May, which would extend the NFIP until 2015.

That bill would also institute some reforms, including increasing coverage limits, phasing in actuarial rates for several categories of properties, and weakening mandatory purchase requirements. Another provision would create a "consumer advocate" for the NFIP.

Mr. Brady said this bill, though, has not gotten to the House floor yet, and there is no talk as of now about a companion bill in the Senate.

Regarding the Senate's June 24 failure to advance an extension through moving the tax extenders bill, a group of trade associations across several industries issued a letter to Senate leaders stating, in part, "Every day of delay in reauthorizing the NFIP contributes to the confusion and risk for families in the real world. The purchase of a new flood insurance policy in general carries a 30-day waiting period before it goes into effect (except for real estate transfers), so even if Congress acts today, a property owner seeking coverage could be without coverage well into July."

Special Reports /

Senate Fails To Move One NFIP Bill, But Could Take Up Another

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