NU Online News Service, Sept. 27, 2:29 p.m.EDT

WASHINGTON—The Senate approved legislation last night thatincludes a provision keeping the National Flood Insurance Programin business, at least through Nov. 18.

By a 79-12 vote, the Senate ended an impasse that threatened agovernment shutdown at midnight Friday by approving a continuingresolution that will keep the government funded through Nov.18.

The key was a determination by the Federal Emergency ManagementAgency earlier Monday that it had enough money to fund itsemergency loan program through the end of the current fiscalyear.

That determination allowed the Senate to forego a vote on a billthat included a $1 billion replenishment provision that the Househad last week refused to include in the continuing resolution thatit passed early Friday before leaving.

The House had demanded that emergency FEMA funds should be fullyoffset by cuts in other government programs.

The Senate voted on two continuing resolutions, one that willfund the government for one week, and another that will fund itthrough Nov. 18.

That averted the need for the full House to return to vote onthe Senate measure. The House is technically in session, so only afew members are needed to be on hand for a vote on a short-termextension.

Charles Symington, senior vice president of government affairsfor the Independent Insurance Agents and Brokers of America, saysthe IIABA “thanks the Senate leadership for advancing a plan thatis expected to prevent a federal-government shutdown and theexpiration of the NFIP.

“Hopefully the House will pass both the short one-week extensionas well as the CR lasting until Nov. 18.”

He adds, “This last-minute compromise, however, clearlyillustrates the need for a long-term extension of the NFIP.Thankfully the House has already passed its version of thismuch-needed legislation, and the IIABA strongly urges the Senateleadership to bring the Flood Insurance Modernization Act to thefloor at the earliest opportunity.”

Jimi Grande, senior vice president of federal and politicalaffairs for the National Association of Mutual Insurance Companies,says, “Congress had a duty to avoid a lapse in the NFIP by passingthe short-term extension before Sept. 30.”

He says that as the parties argued over FEMA-funding levels,they were missing the bigger point. “The House and Senate arevery close to passing a bipartisan flood insurance reform bill thatwill reduce the need for future disaster aid,” Grandesays.

“The NFIP needs to more closely resemble a private-insurancemodel, thus reducing the under-funded risk exposure to thetaxpayers,” he states. “The reforms embodied in H.R. 1309 andthe Senate bill take major steps towards achieving this end.”

Grande also says that the demand for emergency disaster reliefis so great now because the country is not as well prepared as itshould be. “Individuals in flood plains should be aware ofthe risk they face and transfer that risk by buying floodinsurance,” Grande says.

“Congress should also be encouraging states to mitigate againstdisasters by constructing homes and businesses to model buildingcodes,” he adds. “The Federal Government can't prevent naturaldisasters from occurring, but it can apply the lessons learned tosave money and lives in the future.”