NU Online News Service, Aug. 2, 3:08 p.m. EDT
Just before taking a month-long recess, the House once again opted not to act on legislation that would add windstorm coverage to the National Flood Insurance Program.
Matt Brady, a spokesman for the National Association of Mutual Insurance Companies, said Rep. Gene Taylor, D-Miss., who authored the bill, is insistent on bringing the bill back to the House floor in September.
Mr. Brady said the House considered bringing the bill to the floor Friday but ultimately opted to hold off until after the August break. He said the lack of action on the bill shows that Congress is listening to the measure's opponents and realizing that H.R. 1264, the Multiple Peril Insurance Act, is not good policy.
The Property Casualty Insurers Association of America (PCI) said opponents to the bill include the industry, environmental groups, consumer advocates, taxpayer watchdogs, the business community and the Obama administration.
"The fact that the Obama administration and so many consumer, taxpayer and business groups are united in opposition to this bill speaks volumes," said Tom Litjen, PCI's vice president, federal government relations in a statement. "We are glad to see that the support was not there for the bill at this time, and we hope that remains the case after the August recess."
Mike Becker, director of Federal Affairs for the National Association of Professional Insurance Agents (PIA), noted that Friday's decision marks the second time in as many weeks that the bill was not brought up for a vote.
The bill made it to the House floor on July 22 but was pulled after discussion and before a vote could be held.
"We think this indicates many House members are having second thoughts, and support for this bill appears to be eroding," Mr. Becker said.
He added, "Rep. Taylor's bill would add a peril to the program that does not belong there because coverage for wind damage is available in the private market and through state wind pools."
Mr. Becker said PIA supports H.R. 5114, the Flood Insurance Reform and Priorities Act of 2010, which extends the NFIP for five years and contains some reforms. That bill passed the House July 19 and is awaiting action from the Senate.
A separate bill introduced in the Senate that seeks to address the "wind vs. water" issue by having the wind insurer and the NFIP each pay the policyholder 50 percent of a disputed claim before settling differences through arbitration will also not be considered until at least September, according to Mr. Brady.
That bill is sponsored by Sen. Roger Wicker, R-Miss.
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