NU Online News Service, July 23, 11:15 a.m.EDT

The House leadership pulled a bill off of the floor before avote could be taken on legislation that would add windstormcoverage to the National Flood Insurance Program (NFIP).

The bill, H.R. 1264, introduced by Rep. Gene Taylor, D-Miss.,could still be taken up again at any time, but for the moment,insurance industry representatives were satisfied that the Housedid not pass the measure after legislators discussed it on July22.

An insurance industry representative told NU Online News Servicethat it is believed the bill was pulled because Rep. Taylor did nothave enough votes to secure passage. The industry representativesaid the bill is not likely to come up next week and could be onhold until September.

Ben McKay senior vice president, federal government relationsfor the Property Casualty Insurers Association of America (PCI),said the bill could be taken up next week if Rep. Taylor finds thevotes, but he said "more likely than not" it will be delayedlonger.

In a statement, Jimi Grande, senior vice president of federaland political affairs for the National Association of MutualInsurance Companies, said, "We are pleased to see that the Houseleadership decided to pull the bill from consideration, recognizingthat this bill could effectively lead to nationalized insurance forwindstorm coverage."

He added, "The NFIP is already facing a debt of nearly $20billion, which was borrowed from the taxpayers in the wake of the2005 hurricanes. Even [the Federal Emergency ManagementAssociation, which administers the NFIP] has acknowledged that itwill never be able to repay that debt, and by expanding the NFIPthis bill would put the taxpayers at risk for an even greaterexposure."

Mike Becker, director of Federal Affairs for the NationalAssociatoin of Professional Insurance Agents, said, "We areencouraged that the House leadership pulled H.R. 1264 from thefloor and we are optimistic that opposition to this bill willcontinue to grow. This legislation may be well-intentioned, but itis counter-productive. A federal government takeover of windinsurance is unjustified and unwarranted. As House members examineH.R. 1264 they are realizing that it is not a good idea and supportfor it is eroding."

Mr. McKay said PCI has "mixed emotions" about the House'sactions, noting the group would have preferred if the bill wasvoted down.

"However, we think it's a positive sign," he said, noting thatif Rep. Taylor had the support, the vote would have occurred.

He said House members are sympathetic to Rep. Taylor and hisconstituents, but said this bill is "just such a bad publicpolicy."

He noted that opposition is coming from tax groups,environmentalists, the insurance industry and the President.

PCI, Mr. McKay said, is going to continue under the assumptionthat the bill could resurface at any time. Rep. Taylor, he noted,will not stop trying to gain support.

On July 21, a day before the House discussed the bill, the Obamaadministration signaled its opposition to adding windstorm coverageto the flood program. In its statement of policy, issued by theOffice of Management and Budget, the administration said thatalthough it believes in strengthening the NFIP for the benefit ofpolicyholders and taxpayers, "the central rationale for theprogram–the difficulty of obtaining flood insurance through eitherthe private market or state programs–simply does not apply towindstorm insurance in most markets."