NU Online News Service, Sept. 10, 1:46 p.m.EDT

WASHINGTON–A short-term National Flood Insurance Program (NFIP)extension to December is problematic because Congress' scheduletoward the end of the year is uncertain and another lapse couldresult, an agent association representative said.

The NFIP is currently facing a Sept. 30 expiration, and tradegroups are sounding the alarm as Congress returns for a month-longsession.

Mike Becker, national director of federal affairs for theNational Association of Professional Insurance Agents (PIA), saidthat currently there is a possibility that Congress will consideran extension of the flood program through December 31, 2010.

"We believe this is problematic," he cautioned.

He explained that it "is not certain" that there will be asubstantive lame-duck session after the November elections.

"Passing an NFIP renewal that only runs through December 31carries a high risk that the program will suffer yet anothermulti-week expiration that runs into January," Mr. Becker said.

He said PIA suggests the best solution is for the Senate to nowpass H.R. 5114, the Flood Insurance Reform and Priorities Act of2010, which has already been passed overwhelmingly on a bipartisanbasis in the House.

"H.R. 5114 extends the program for a full five years and makeskey substantive reforms," Mr. Becker said.

"The main issues of contention regarding the flood program–itsKatrina-related debt and the desire by some to add wind coverage tothe program–are not addressed in H.R. 5114 and can be dealt with inseparate bills next year," he said.

Failure to extend the program or for the Senate to act onlong-term reform and reauthorization legislation will causedisruptions to the real estate market and undermine confidence inthe flood program, said Mr. Becker.

Mr. Becker made his comments as Congress prepares to work Mondaywith a large agenda, and plans to leave by Oct. 13,

David Sampson, president and CEO of Property and CasualtyInsurers Association of America, agreed with Mr. Becker."Reauthorizing the National Flood Insurance Program needs to be atop priority for Congress when they return from recess," he said."Congress has already allowed four NFIP lapses this year."

He added, "This is a dangerous political game that leavesmillions of Americans vulnerable to severe weather."

Mr. Sampson also cited the devastating flood waters that rippedthrough Texas and Oklahoma this week. "That serves as yet anotherreminder that the NFIP reauthorization cannot be postponed," hesaid.

Mr. Becker cited "many negative effects" from the uncertaintythat results every time Congress allows the program to expire, thenrenews it for a period of weeks or even just days.

He said that, when expirations occur, real estate closings getdelayed and property markets slow to a halt.

"If the goal of lawmakers is to spur economic recovery,continuing this pattern of expirations followed by short extensionsof the flood program is counterproductive," he said.

The repeated failure of Congress to provide an adequateextension of the NFIP is also beginning to erode participation byWrite Your Own carriers, he added.