NU Online News Service, June 24, 2:42 p.m.EDT

As Congress works under imminent deadline to deal with thefuture of the critical National Flood Insurance Program, it isgetting conflicting advice as to how it should move to shore up theprogram, with the Write-Your-Own(WYO) program getting particular attention.

At a Thursday Senate Banking Committee hearing, Sen. TimJohnson, D-S.D., chairman of the panel and other committee memberswere told by insurance officials in submitted testimony thatreauthorization of the program is essential.

However, several of those who testified at the hearing calledfor major changes, with one person saying the system is "broken,"while a consumer representative said the current framework is"unworkable."

In opening comments, Johnson sought to reassure the industry andconsumers that Congress will work to sustain the program.

He noted, "Over the past year, we have also had severaldisruptive lapses in the NFIP. 

"I hope we can provide greater certainty to the program througha long-term extension with much needed reforms," Johnson said.

Adam Kolton, executive director of the National WildlifeFederation, representing SmarterSafer.org, said recent naturaldisasters underscore the need for NFIP reform "that leads to lessdevelopment and redevelopment in high risk sensitive areas, betterland use planning, and significant savings for U.S. taxpayers.

He urged the banking panel to pass a "strong, comprehensivereform bill that improves flood risk mapping, ensures risk basedrates, and incentivizes mitigation by individuals andcommunities."

Travis Plunkett, legislative director of the Consumer Federationof America, said the insurance component of the NFIP has "provenunworkable," citing political pressure that has kept floodinsurance rates in many areas below the real cost of providingcoverage.

"This has led to chronic taxpayer subsidies now totaling $18billion," Plunkett said.

"Much of this subsidy has led to risky coastal development,often by affluent builders and homeowners," he said.

He also charged that the Federal Emergency Management Agency hasalso failed to fix the costly WYO program.

He said this allows private insurers who assume no flood risk"to reap excessive fees for servicing flood policies, especially attimes of severe flooding."

He said that the WYO program "eats up one-third to two-thirds ofthe insufficient premium dollars and exposes taxpayers tounnecessary costs."

However, officials of the Independent Insurance Agents andBrokers of America (IIABA) defended the WYO in submitted testimony,stating that independent agents serve as the sales force of theNFIP and the conduits between the NFIP, the WYO companies, andconsumers.

The IIABA said that independent agents serve as the sales forceof the NFIP and the conduits between the NFIP, the WYO companies,and consumers.

"This relationship provides independent agents with a uniqueperspective on the issues surrounding flood insurance, yet alsomakes the role of the insurance agent in the delivery process offlood insurance an incredibly complex endeavor," IIABA officialssaid.

"Agents must possess a high degree of training and expertise andmust regularly update their continuing education credits throughflood conferences and seminars," the IIABA said.

"Every agent assumes these responsibilities voluntarily and doesso as part of being a professional representative of the NFIP," thestatement said.