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FOR IMMEDIATE RELEASE NAIC COMMENDS FLOOD INSURANCE REFORM KANSAS CITY, MO (June 30, 2006) – The National Association of Insurance Commissioners (NAIC) commends the U.S. House of Representatives for passing H.R. 4973, the Flood Insurance Reform and Modernization Act of 2006. Likewise, Rep. Richard Baker (R-LA) and Rep. Barney Frank (D-MA) are to be commended for their leadership in sponsoring the bill that reforms the National Flood Insurance Program (NFIP). The NFIP is an important component of the government’s response to natural catastrophes, and the NAIC appreciates the leadership of Rep. Baker guiding this legislation that will help provide funding to pay outstanding claims stemming from the 2005 hurricane season, as well as modernize the program to address problems with how it is structured. The NAIC also commends the inclusion of state-sponsored, non-binding mediation in the bill, an effort driven by Rep. Debbie Wasserman-Schultz (D-FL) and Rep. Ginny Brown-Waite (R-FL). Non-binding mediation offers policyholders a proven and cost-effective solution to resolve cases involving various insurers and the NFIP. Insurance companies and policyholders have a strong self-interest in settling claims quickly outside the expensive and time-consuming litigation process. Those who are not satisfied with the process, either policyholders or insurers, retain their right to go to court, but mediation’s exceedingly high success rate demonstrates that most parties prefer a speedy and efficient alternative for reaching a good faith settlement. The mediation concept was pioneered by Florida, and adopted by Alabama, Mississippi and Louisiana. “As state insurance officials, we recognize that insurance is as much a promise as it is a product,” said Alessandro Iuppa, NAIC President and Maine Superintendent of Insurance. “Part of our responsibility is ensuring that the insurance companies we oversee are structured and capitalized to keep their economic promises to policyholders. We are greatly encouraged that this legislation, should it become law, will allow the NFIP to do the same, and keep its promise of economic recovery to flood insurance policyholders.”
About the NAIC About the NAIC Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm You are currently subscribed to the "NAIC News Release" electronic service. To unsubscribe from the "NAIC News Release" electronic service, send a blank To unsubscribe from all NAIC Electronic Services, send a blank e-mail to NAIC Opt Out services. |
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2006 National Association of Insurance Commissioners. All rights reserved. |
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