House Leaders Pledge To Reinstate Flood Cover

House Leaders Pledge To Reinstate Flood Cover

By Steven Brostoff, Washington Editor

NU Online News Service, Dec. 13, 9:50 a.m. EST, Washington?The Chairman and Ranking Democrat on the House Financial Services Committee said yesterday they will introduce legislation next year to reauthorize the National Flood Insurance Program.

Meanwhile, the Federal Emergency Management Agency, which runs the program, said it is still "open for business" and will not be affected by the "brief interruption" of the program.

The flood insurance program is scheduled to expire on Dec. 31, 2002, because the 107^th Congress failed to reauthorize it before its adjournment on Nov. 22.

Nonetheless, Anthony S. Lowe, FEMA's Federal Insurance and Mitigation Administrator, said that the glitch should not affect policyholders.

"We're quite optimistic that this will have no adverse impact on policyholders," Mr. Lowe said yesterday.

"Similar interruptions have happened before and were remedied without hindering our operations or affecting people's coverage, and there is no reason to think this will be different," he said.

The legislation, which will be introduced by House Financial Services Committee Chairman Mike Oxley, R-Ohio, and Ranking Democrat Barney Frank, D-Mass., will reauthorize the program and make the reauthorization retroactive to address any lapses.

Mr. Lowe said that similar retroactive reauthorizations have been done in the past.

He added that FEMA has notified insurance companies that any premium payments for new and renewal policies received after Dec. 31, 2002, are to be held and policies not issued until Congress reauthorizes the program.