NU Online News Service, July 13, 2:57 p.m. EDT

The National Association of Professional Insurance Agents today urged the leaders of the House to "quickly pass" legislation now expected to be on the floor Thursday that would reauthorize the National Flood Insurance Program for five years.

The legislation, H.R. 5114, called the "Flood Insurance Reform and Priorities Act of 2010," is sponsored by Rep. Maxine Waters, D-Calif.

The letter, written by Jon D. Spalding, PIA national president, and Leonard C. Brevik, PIA executive vice president and CEO, states, "There is broad consensus that the National Flood Insurance Program is a vital component of America's economic prosperity that provides affordable protection to homeowners and business owners."

It continues, "PIA strongly supports the NFIP because it has been protecting us from flood risks since its inception over 40 years ago. We urge you to bring this bill to the floor and that it be passed quickly."

The bill was passed as amended by the House Financial Services Committee May 26.

"Perhaps most significantly, H.R. 5114 extends the flood insurance program through the end of 2015," added Mike Becker, PIA director of federal affairs. "This would finally end the uncertainty that has resulted from a series of short-term NFIP reauthorizations."

It would also make other reforms, including increasing NFIP coverage limits, phasing in actuarial property rates, phasing out premium subsidies for second and vacation homes, and making business interruption and additional living expense coverages available at actuarial cost.

"Allowing the flood insurance program to regularly lapse, something that has occurred over the past few years, makes it much more difficult to convince those who need flood insurance to buy it, leaving America's homes and businesses uninsured," Mr. Spalding and Mr. Brevik said in the letter.

"Permitting uncertainty regarding the long-term future of a program that enjoys broad bipartisan support has had the unintended consequence of delaying real estate closings at a time when our nation is struggling to build a sustainable economic recovery," they added.

"This has occurred at the same time that we are dealing with an environmental disaster in the Gulf of Mexico and facing the prospect of an active hurricane season," they said.

The House bill has no companion in the Senate.

An effort is expected by Rep. Gene Taylor, D-Miss., to add wind to the program, a provision universally opposed by insurers and reinsurers.

The bill does not contain a provision that passed the Senate in 2008 that would forgive the program's more than $18 billion in debt.

The current temporary reauthorization runs out at the end of the federal budget year, Sept. 30.

Special Reports /

PIA Letter Urges House Passage Of 5-Year NFIP Extension

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