PIA National is optimistic about
four draft bills that were recently released by
House Financial Services Committee Chairwoman Maxine Waters (D-CA). This
draft package was released in advance of a March 13 hearing on NFIP
reauthorization ["Preparing for the Storm: Reauthorization of the National
Flood Insurance Program"]. PIA National submitted
testimony for the hearing.
Each of the released bills pertains to one of four categories: mitigation,
mapping, administrative reform, and a foundational bill that reauthorizes
the program for five years, forgives the debt, and addresses affordability.
The current authorization for the NFIP expires in May.
PIA National has advocated for several provisions included in this package,
including a long-term reauthorization, increased investment in mapping and
mitigation, the creation of a consumer appeals process of FEMA mapping
decisions, and the inclusion of provisions to continue the program's move
toward risk-based rates.
"Perhaps most important for independent agents is what PIA National has
successfully prevented from being included in the draft package—a cut
to the Write-Your-Own (WYO) reimbursement rate for insurers administering
the NFIP," said Jon Gentile, vice president of government relations of
PIA National.
A WYO rate cut could force the WYOs to pass that reduction on to agents
through their commissions. In turn, that reduction in agent commissions
would likely result in an exodus of qualified independent agents from the
NFIP, which would devastate the program. PIA National has consistently been
the only independent insurance agent association that opposes a WYO cut.
"While the release of Chairwoman Waters' draft package is only an initial
step toward reauthorizing the NFIP, PIA National views the maintenance of
the current WYO rate as an early victory for our unrelenting advocacy on
this issue," Gentile added. "PIA National will remain vigilant on this
issue throughout this process."
PIA National will also continue to encourage Chairwoman Waters to include
other important provisions, such as H.R. 1666, the continuous coverage bill
introduced earlier this week by Reps. Kathy Castor (D-FL) and Blaine
Luetkemeyer (R-MO), in a final NFIP reauthorization bill. A continuous
coverage provision would allow consumers who could be left vulnerable if
their policies are canceled in the middle of the policy year to go back to
the NFIP and purchase a policy at the rate they previously had.
