NU Online News Service, Oct. 27, 3:03 p.m. EDT
It is looking more and more likely that Congress will again have to pass a temporary extension of the National Flood Insurance Program (NFIP), officials of the Independent Insurance Agents and Brokers of America (IIABA) are warning.
Charles Symington, IIABA senior vice president of government affairs, says it appears likely another short-term extension is on the horizon.
"As time goes by, it is increasingly unlikely that the Flood Insurance Modernization bill will be able to pass the Senate and be reconciled with the House version before the scheduled expiration of the NFIP on Nov. 18," he says.
He adds that the IIABA still "strongly supports" the long-term extension and reform of the program and urges the Senate to bring the bill to the floor at the earliest opportunity.
But, he says, "We also urge House and Senate leaders to now begin planning for another short-term extension to keep the program up and running while negotiations continue over the long-term bill."
The House in July passed H.R. 1309, "The Flood Insurance Reform Act of 2011." It would reform and modernize the program and extend it until Sept. 30, 2016.
The Senate bill is "The Flood Insurance Reform and Modernization Act." Senate passage would set the stage for negotiations designed to merge the mostly similar bills; however, Senate-floor action on legislation passed out of committee Sept. 8 has still not been scheduled.
Sources say the reason action on legislation extending the program until Sept. 30, 2016 is unlikely is because the Senate leadership, both Democratic and Republican, are demanding that the bill be used as an engine to deal with issues not related to the NFIP.
Meanwhile, interests involved are still urging action on an extension with reforms. Matt Gannon, assistant vice president of the National Association of Mutual Insurance Companies, says: "We join realtors, home builders, mortgage lenders and fellow insurance trade groups in urging Senate leadership to put politics aside and pass this vital legislation that already enjoys broad bipartisan support."
He adds, "Congress can't demand fiscal responsibility on one hand but ignore common-sense reforms to the NFIP on the other hand."
According to State Farm, which is exiting the Write-Your-Program because of continued NFIP uncertainty, since 2002 there have been 11 last-minute reauthorizations of the NFIP, and on four occasions the program was allowed to lapse for extended periods of time.
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