NU Online News Service
WASHINGTON–With the Sept. 30 expiration of the National Flood Insurance Program (NFIP) in sight, the property and casualty insurance industry is moving on several fronts to ensure that the program is sustained, if only on a temporary basis, into the next Congress before it expires again.
The most likely vehicle for an extension is the Homeland Security Department's appropriations bill, according to officials of the Independent Insurance Agents and Brokers of America (IIABA).
Charles Symington, IIABA senior vice president for government affairs, said insurance trade groups–joined by the real estate industry–are working with Sen. David Vitter, R-La., to include a provision in the DHS bill extending the program, hopefully into the next Congress.
"We have to do something by the 30th," Symington said. "We are seeking an extension for a year, not just a couple of months, long enough to get program into next Congress," he said.
A tentative schedule obtained by NU Online News Service indicates that the Senate Banking Committee hopes to hold a hearing Sept. 23 on flood issues.
Joel Kopperud, a director of government affairs at the Council of Insurance Agents and Brokers (CIAB), added that there are several bills that have the reauthorization language, but getting any consideration in the Senate with the limited agenda this month is difficult.
"It's really a race against the clock at this point," he said. "We're pushing hard for a one-year reauthorization in a potential continuing resolution, which is what exists in the DHS appropriations bill."
Of course, he said, "we would prefer the Senate pass the House-passed five-year reauthorization, but that's not likely to happen with the other issues on their calendar."
Mr. Kopperud said that, separately, CIAB is "encouraged" that the ongoing battle between wind, water, and the NFIP may finally be addressed by a bill that was introduced by Sen. Roger Wicker, R-Miss., this summer.
"There is, of course, an ongoing dispute among stakeholders on this, and we're hoping Sen. Wicker's language is the starting point for negotiations," he said.
Don Griffin, vice president of personal lines at the Property Casualty Insurers Association of America, voiced deep concern that Congress has returned and yet "there is still not a clear path for the NFIP reauthorization."
Griffin said that in the "midst of intense debate over tax cuts and attention focused on the midterm elections, our biggest challenge is time right now.
"We have to keep up the pressure," Griffin said. "This is one of our top priorities."
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