NU Online News Service, Feb. 25, 2:05 p.m. EST

A House hearing has been scheduled for March 9 on the status of the National Flood Insurance Program amid signs legislation reauthorizing the program that passed the House last year will soon be re-introduced—albeit with some changes sought by the industry.

Rep. Judy Biggert, R-Ill., chairwoman of the Insurance, Housing and Community Opportunity Subcommittee of the House Financial Services Committee has called the hearing.

Industry officials who asked not to be named, confirmed that Ms. Biggert has agreed to sponsor legislation reauthorizing for five years the program that passed the House in July.

The Senate did not take up the bill. The program has been operating on temporary extensions since it originally ran out on Sept. 30, 2008. The current extension expires at the end of the government fiscal year, Sept. 30.

The legislation includes provisions designed to phase in market rates and reduce instances where a homeowner submits multiple claims.

Last year's legislation, H.R. 5114, the "Flood Insurance Reform and Priorities Act of 2010," passed the House 329-90 in July. It was sponsored by Rep. Maxine Waters, D-Calif.

The legislation is not expected to include an amendment added on the floor that would require write-your-own insurers to agree that they will not use "anti-concurrent causation" language to exclude coverage of wind damage simply because there is also flood damage to the property.

The industry vehemently opposed this provision, and its sponsor, Rep. Gene Taylor, D-Miss., was defeated for re-election last November, with insurers reportedly contributing strongly to the campaign of his successor, Steven Palazzo, now R-Miss.

Another provision likely to draw renewed scrutiny would authorize the Federal Emergency Management Agency, which administers the program, to spend up to $250 million annually to respond to consumer requests for information about their status in the program, and whether they are subject to higher rates through remapping, for example.

Rep. Jeb Hensarling, R-Texas, now a member of the Republican-controlled leadership of the committee, strongly objected to this provision, and may try to have it deleted.

The new bill is expected to be silent on dealing with the current NFIP deficit of more than $18 billion, although that could generate criticism.

Special Reports /

House Slates NFIP Hearing; Reauthorization Bill May Be Near

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