FOR IMMEDIATE RELEASE
INSURANCE REGULATORS URGE SENATE TO PASS FLOOD
INSURANCE BILL QUICKLY
Long-term extension of national flood program critical to market
WASHINGTON, D.C. (June 19, 2012) — In a letter to
Senate leadership and the Chairman and Ranking Member of the Senate Banking
Committee, members of the National Association of Insurance Commissioners
(NAIC) urged prompt action on a long-term reauthorization and reform of the
National Flood Insurance Program (NFIP) before the latest extension expires
at the end of July. Continued stop-gap reauthorizations of the NFIP cause
disruption in both the insurance and housing markets. It is anticipated
that the Senate will consider a five-year extension in the coming days.
“Temporary extensions, like the current two-month version, impair
consumers‘ ability to plan ahead, a critical consideration when purchasing
insurance,” said NAIC President and Florida Insurance Commissioner Kevin M.
McCarty. “In the last four years, we‘ve had 17 extensions and multiple
lapses of the program, leaving consumers vulnerable to any number of
natural disasters that cause flooding.”
The NAIC supports the reforms included in the Senate bill to provide
long-term solvency to the program as well as enhanced consumer protections.
In particular, the Senate bill includes NAIC-supported non-binding
mediation language, a provision not included in the House version.
“I am hopeful that the Senate will take action this week, and will
quickly conference with the House to reach consensus on a final measure,”
added NAIC President-Elect and Louisiana Insurance Commissioner Jim Donelon.
“Clearly, living in Louisiana, I have a vested interest in this program,
but just last year 44 states were impacted by disasters, the majority of
which included flooding. This is not a local or coastal issue, but one that
impacts nearly every state across the country.”
The NFIP is a federal program, managed by the Federal Emergency
Management Administration (FEMA) that provides flood insurance, floodplain
management and maps of flood hazard zones. Through the NFIP, property
owners in participating communities can buy insurance to protect against
flood losses. Participating communities are required to establish
management regulations in order to reduce future flood damages.
for a copy of the letter.
Click HERE for
more information on the NFIP.
for consumer information on disaster preparedness.