The National Conference of Insurance Legislators added its voiceto the growing chorus urging a delay of planned National FloodInsurance Program rate increases, while lobbyists with knowledge ofthe NFIP say Senate action on such a delay could come by the end ofthe year.

NCOIL passed a resolution at its annual meeting this pastweekend stating that the Biggert-Waters Act “substantially andimmediately devalued the investments made in all properties endowedwith flood damage mitigation measures, as well as propertiesreceiving subsidize rates.”

The resolution predicts that consumer confidence and thenation's economy, including the banking and mortgage industries,will suffer—and says that “a violent rise” in premium costs maylead to financial distress for residents and property owners aroundthe nation.

The resolution also urges Congress and FEMA to actively andexpeditiously explore the use of private reinsurance to protectagainst catastrophic loss.

Meanwhile, the Senate is setting the stage for promptlegislative action on the issue. According to industry lobbyistsintimately involved in the National Flood Insurance Program, Senatestaffers will be spending the current Thanksgiving recess“whittling down” proposed amendments to the National DefenseReauthorization Act (NDAA), S. 1867.

The lobbyist said that, “there is no guarantee” that theHomeowner Flood Insurance Affordability Act, S. 1610, will be onthe list cleared for floor action, but it has “broad bipartisansupport.”

If the flood bill—sponsored by Sen. Mary Landrieu, D-La., andSen. Robert Menendez, D-N.J.—clears various hurdles and passes theSenate through the NDAA in some form, it will go directly toconference and therefore bypass the need for action by the HouseFinancial Services Committee, where there is significant oppositionto disrupting the path to actuarial rates imposed by theBiggert-Waters Act, the lobbyist said.

Under the Landrieu/Menendez bill, most of the rate increasesimposed by Biggert-Waters would be delayed for up to four years.Only provisions imposing actuarial rates on businesses and secondhomes would be retained under S. 1610.

One industry lobbyist who is closely tracking the issue says“the Landrieu/Menendez bill has strong bi-partisan support and thesupport of the majority leader,” Sen. Harry Reid, D-Nev. “Plus notputting it on could gum up the works,” i.e., delay indefinitelyaction on the underlying NDAA bill. “So, it has an excellentchance,” the lobbyist said.

In a letter last week to Congress, a group of Write-Your-Owncompanies said that before Congress decides to revise the rateincrease programs required under the Biggert-Waters Act of 2012 it“must realize and acknowledge” that any changes will take no lessthan six months for WYO insurers to implement.

“We hope that any proposed legislative changes would bediscussed with the NFIP and other stakeholders as they are beingdeveloped to avoid further unintended consequences,” the lettersaid.