The U.S. Senate's vote to continue the National Flood Insurance Program for only 46 days drew fire from an insurance agent group, which warned against playing "Russian roulette" with policyholders.
After extension of the authorization was voted on Oct. 29, the National Association of Professional Insurance Agents was highly critical of its short length, saying the move imposes uncertainty on mortgage lenders and homeowners. 
"When Congress creates this air of uncertainty, it triggers additional legal obligations concerning notice to consumers and current NFIP policyholders about the pending lapse," said Mike Becker, PIA's national director of government affairs.
"Congress needs to stop playing Russian roulette with the nation's real estate market and consumer confidence by granting such short extensions to the NFIP," he added.
Officials of the National Association of Mutual Insurance Companies withheld criticism, saying only that NAMIC hopes Congress uses the time to act on the issue in a positive way.
Senate approval came on a 72-28 vote just hours after the House voted passage 247-178. The vehicle for the so-called "continuing resolution" was H.R. 2996, the bill appropriating $32.8 billion for Interior Department/Environment Protection Agency appropriations for the new fiscal year.
The six-week funding extension "should allow enough time for the remaining appropriation bills to be completed," said Sen. Dianne Feinstein, D-Calif.
Congress has approved just four conference reports of the 12 appropriation measures this year. The new fiscal year began Oct. 1, necessitating the stopgap funding until all the appropriation measures are approved.
The NFIP's original authorization ran out at the end of the fiscal year, on Sept. 30.
The program has been extended several times because of the press of other businesses and because of the political difficulty in reconciling vastly different bills dealing with reauthorization passed by the House and Senate.
For example, a House bill to reshape the program adds wind damage coverage, something strongly opposed by the insurance industry. The Senate rejected inclusion of wind last May. The House included wind coverage in its September 2007 vote.
The House bill also contains provisions that would make it harder for flood insurers to put most of the cost of flood claims on the NFIP.
"While we are heartened that the flood program was not allowed to slip into a technical lapse, these short extensions are insufficient to maintain certainty in the market," said PIA's Mr. Becker.
"Congress has a lot on its plate at the moment, and since lawmakers don't have time to conduct hearings on reforms to the flood program, the program should be extended for at least another six months so that hearings can be held in a sufficiently deliberative manner," he added.
Jimi Grande, NAMIC's senior vice president of federal and political affairs, said that "while there's certainly no shortage of important issues on Congress' plate, we hope lawmakers will work to protect thousands of homeowners and businesses by ensuring the financial stability of the NFIP without intruding on areas like windstorm coverage that are already being served by the private market."
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