PIA-Endorsed Private Flood Bill Passes House
PIA is applauding the U.S. House of Representatives for passing a bill designed
to encourage a private flood insurance market. The House passed the Flood
Insurance Market Parity and Modernization Act (H.R. 2901), in a bipartisan
voice vote on April 26. A recorded vote—expected to be a formality—was
expected later in the evening.
"This legislation seeks to encourage the development of a private flood insurance
market, with strong consumer protections being overseen by state insurance
regulators," said PIA National Vice President of Government Relations Jon Gentile.
"We thank the bill's sponsors Reps. Dennis Ross (R-FL) and Patrick Murphy (D-FL)
for their leadership on this important issue." A companion bill, S. 1679,
introduced by Senator Dean Heller (R-NV), awaits action in the Senate.
The bill will expand flood insurance options for consumers by clarifying
the definition of a private flood insurance policy as that which provides flood
insurance coverage issued by an insurance company that is licensed and approved
by the state insurance regulator. "It ensures that private flood insurance can
be used to satisfy the National Flood Insurance Program's (NFIP's) continuous
coverage requirement, an essential aspect of ensuring policyholders are not
penalized for moving from one policy to another," Gentile said.
"PIA members from around the country were just in town for our Federal
Legislative Summit asking members to support this measure. We are pleased
Congress heard the voices of their constituents," Gentile said.
PIA opposes the immediate privatization of the National Flood Insurance
Program (NFIP), but supports sensible solutions for encouraging the growth
of the private flood insurance market with measures like H.R. 2901. In
addition, PIA supports the long-term reauthorization of the NFIP when it
comes up for renewal in 2017. Encouraging the private flood insurance market
is a good first step that we hope to see accomplished this year, understanding
that, at present and in the near future, the private market is not a realistic
replacement for the NFIP.
This press release is online here.