FOR IMMEDIATE RELEASE

NAIC URGES CONGRESS TO EXTEND NFIP
Flood Insurance Program Expiration Leaves Consumers Vulnerable

WASHINGTON, D.C. (June 30, 2010) — The National Association of Insurance Commissioners (NAIC) has sent a letter to House and Senate leaders urging immediate action to extend the National Flood Insurance Program (NFIP).

In the letter, regulators stressed that timing is negatively affecting consumers. The NFIP expired on June 1, the first official day of hurricane season. Since then, flooding has occurred in several states. In addition, a flood insurance policy normally does not go into effect for 30 days after the policy is purchased, further underscoring the importance of renewing the program as quickly as possible.

"As state regulators, we are deeply concerned with the impact the nearly month-long lapse has caused for consumers and future flood victims across the country," said Jane L. Cline, NAIC President and West Virginia Insurance Commissioner. "It is imperative that Congress act to quickly to extend the program so that consumers can protect themselves."

Regulators also urged Congress to consider the effects of the NFIP lapse on consumers trying to close on homes located in high-risk flood areas. These areas have a one percent or greater chance of flooding in any given year, which is equivalent to a 26 percent chance of flooding during a 30-year mortgage. A lender often requires flood insurance before closing on homes in these areas.

Click HERE to view full text of letter.

About the NAIC

Formed in 1871, 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 five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

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