WASHINGTON–Property-casualty insurance trade groups are breathing a sigh of relief due to Congresses' extension of the National Flood Insurance Program until Sept. 30–the end of the current government fiscal year.
Approval came with passage of an omnibus spending bill that includes a provision continuing the program. President Obama signed the measure into law yesterday.
The decision means that Congress will have given itself an entire year to reauthorize a program that expired last Sept. 30 while it continues to try and resolve substantive differences between legislation as passed by the House and Senate which extends and reforms the program.
Both versions of the legislation would have extended the program for 5 years and made significant reforms to help put the program on sound financial footing.
A critical difference holding up enactment is a provision in the House version of the legislation that would add wind damage coverage to the program. A Senate amendment adding such coverage was defeated by a wide margin when it came up for a floor vote.
David A. Sampson, president and chief executive officer of the Property Casualty Insurers Association of America said that PCI intends to "work closely with the House and Senate to advocate a long-term extension that preserves the program's viability and does not needlessly expand its scope into other areas, such as windstorm insurance, where coverage is already available through private industry or state programs."
The Independent Insurance Agents & Brokers of America welcomed the decision. Robert Rusbuldt, IIABA president and CEO, said, "While this extension is just a temporary fix, it is a significant and welcome development for insurance consumers." He added that the IIABA supports a long term reauthorization with significant reforms.
Brian Marino, co-chair of the National Natural Catastrophe Working Group of the National Association of Professional Insurance Agents, said Congress had cut the timing close, "but what matters is the flood program has been extended."
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