FEMA/NFIP Issues Preliminary Overview
of H.R. 3370 Implementation
Federal officials are out with a
preliminary overview of the
implementation of the Homeowner Flood Insurance Affordability
Act of 2014 (H.R. 3370), which was signed into law by President
Obama on March 21, 2014. This law repeals and modifies certain
provisions of the Biggert-Waters Flood Insurance Reform Act,
which was enacted in 2012, and makes additional program changes
to other aspects of the program not covered by that Act. Many
provisions of the Biggert-Waters Flood Insurance Reform Act
remain and are still being implemented.
FEMA/NFIP notes that "It is not possible for changes to happen
immediately. While the new law does require some changes to be
made retroactively, applying to certain policies written after
July 6, 2012, other changes require establishment of new
programs, processes, and procedures.
This bulletin offers
some details and notes that additional guidance on some issues
will be issued in the months ahead. (See some of these in the
previous item, #5).
The Flood Insurance Producers National Committee (FIPNC),
chaired by PIA National President-elect Richie Clements and
the Institute for Business and Home Safety (IBHS) (a group
for WYOs), are continuing to work with FEMA/NFIP. We asked
FEMA/NFIP to issue an outline as soon as possible which
includes those matters already decided.
Overview on the Homeowner Flood Insurance Affordability
Act of 2014
(HR 3370) [4/3/14]
Bill to Extend TRIA Is
Introduced in the Senate
A bipartisan bill (S. 2244)
to reauthorize and extend the
Terrorism Risk Insurance Act (TRIA) was introduced April 10
in the U.S. Senate by Sens. Charles Schumer (D-N.Y.) and
Christopher Murphy (D-Conn.).
Under the proposed legislation, insurers' copays
would be raised to 20 percent from 15 percent. In addition,
the recoupment of federal payments will be mandatory if the
insurance industry's aggregate compensation loss is less
than $37.5 billion, up from the current sum of $27.5
billion. This increase would be phased in over a period
of five years.
PIA lobbied for the creation of TRIA in 2002 and has since
strongly supported each of its reauthorizations. The current
reauthorization expires on December 31, 2014. During the
just-completed PIA Federal Legislative Summit (FLS), PIA
members from around the country met with their
representatives and senators, emphasizing the importance
of renewing TRIA. PIA agents from New York and Connecticut
met with Sens. Schumer and Murphy.
"PIA strongly supports the reauthorization of TRIA, in a
manner in which all companies, small and large, have an
opportunity to participate," said PIA National Director
of Federal Affairs Jon Gentile. "Failure to re-authorize
TRIA in a timely fashion could have dire consequences on
the nation's economy and ability to rebound from a
PIA is concerned that any further changes to TRIA could
lead to small and mid-sized carriers, the life blood of
many markets, being shut out of the market, an outcome
that would be detrimental to many communities.
is co-sponsored by Sens. Dean Heller (R-Nev.);
Mark Kirk, (R-Ill.); and Mike Johanns (R-Neb.). Following
its introduction, it was referred to the Senate Committee
on Banking, Housing, and Urban Affairs.