NU Online News Service, Sept. 22, 10:00 a.m.EDT

The Senate last night passed, by unanimous consent, legislationextending the current National Flood Insurance Program until Sept.30, 2011.

Officials of three industry trade associations lauded thedecision and urged the House to also act promptly.

Early this morning, nine trade groups representing the propertyand casualty and real estate industries sent a letter to thecongressional leadership urging prompt action on thelegislation.

The letter was sent amidst signs that Congress intends to leavelate next week to campaign, either Sept. 29 or 30, according toofficials of the American Insurance Association.

At the same time, the Senate Banking Committee scheduled ahearing for late afternoon to hear a number of witnesses discussthe status of the program and propose reforms and modifications tothe current program.

In the letter to congressional leadership, trade groups saidthey "respectfully request that the House and Senate take immediateaction to reauthorize and extend the program for at least oneyear."

The letter noted that the National Association of Realtorsestimates that every day the NFIP is expired could cause the delayof 1,400 real estate transactions. "Even the possibility of anupcoming expiration of the NFIP contributes to the confusion andrisk for families in the real world," the letter said.

"It is for this reason, to both avoid further potentialexpirations AND to avoid confusion that the short-term extensionscause, that we urge Congress to approve an extension of at leastone year's length," the letter said.

The letter was signed by the American Insurance Association; theAmerican Land Title Association; the Council of Insurance Agents& Brokers; the Financial Services Roundtable; the IndependentInsurance Agents and Brokers of America; the Mortgage BankersAssociation; the National Association of Realtors; the NationalAssociation of Mutual Insurance Companies; and the PropertyCasualty Insurers Association of America. NU Online News Service,Sept. 22, 10:00 a.m. EDT

Without House action, the program expires at the end of thecurrent fiscal year, Sept. 30.

S. 3814, the "Flood Insurance Extension Act of 2010," wassponsored by Sen. David Vitter, R-La.

"Now that the Senate has acted, it's incumbent upon the House topass the extension before they break for the mid-term election,"said Blain Rethmeier, a spokesman for the American InsuranceAssociation. "We have every expectation that will happen and lookforward to the program being in place for one year."

Marguerite Tortorello, senior vice president, public affairs,for the Property Casualty Insurers Association of America, lastnight called the decision "an encouraging first step."

"We urge the House of Representatives to approve the Senate'sbill without delay," she said, adding, "Absent House action, thisvital program that protects 5.5 million Americans will expire atthe end of the month."

Charles Symington Jr., senior vice president for governmentaffairs of the Independent Insurance Agents and Brokers of America,observed that the NFIP recently encountered a month-longexpiration. He voiced concern that this and other recentexpirations and temporary extensions "are negatively impacting themarket."

Mr. Symington said the program has worked for more than 40 yearsto help protect consumers from flood risks, and Congress hastraditionally extended the program for five-year periods in orderto provide stability for the marketplace.

Unfortunately, he explained, Congress has recently only extendedthe program for short periods, from 30 days to six months.

He said the IIABA joined forces with seven other major tradeassociations in sending a letter to the House and Senate leadershipurging them to pass a one-year extension of this "criticalprogram."

Updated trade group comments, 1:00 p.m., Sept. 22