Congress returns from its August recess next week, and not a moment too soon. The National Flood Insurance Program (NFIP) is set to expire on September 30th if Congress doesn’t act to extend it. The NFIP is currently on its 12th short term extension since its last long-term renewal expired in September 2017. While Congress may try to pass a stand-alone extension of the NFIP, it seems more likely that any NFIP extension will be tied to a federal government appropriations measure, which must also be passed by September 30 to avoid a government shutdown.

In the meantime, PIA National has been building on the progress of the House Financial Services Committee in June to provide a long-term reauthorization of the NFIP. At that time, House Financial Services passed a legislative package that PIA strongly supports to reauthorize the program for five years. This package includes important reforms to the NFIP, and, notably for PIA members, it does not include a provision that would impede independent agents' ability to be fairly compensated for their work. The full House is expected to vote on this legislation sometime in September.

Unfortunately, some members of Congress may try to attach a provision affecting agent commissions to the House Financial Services bill on the House floor or in the Senate. As such, we remain vigilant in our efforts to ensure the defeat of any such provision in keeping with our longstanding protection of agent compensation here at PIA National.

Commissioner of Insurance Jim Donelon congratulates the New Orleans Fire Department for achieving Public Protection Classification 1 status for the first time in history. Homeowners in New Orleans can expect rate reductions in their fire insurance premiums this fall due to this reclassification.

Donelon recognizes Superintendent of Fire Timothy McConnell, firefighters and local officials in New Orleans for the improvement of their fire protection grading from Class 2 to Class 1, which is the best protection grading possible.

"Through diligent work and cooperation, increased protection of homes, businesses and families from fires is possible. Improved fire protection ratings are a testament to the hard work of fire departments and community leaders and we all reap the benefits in the form of improved safety, peace of mind, and lower premiums for fire insurance due to decreased risk," Donelon said.

Homeowners in New Orleans and east of Chef Menteur Pass could see a 2.2 percent decrease in annual premiums under the new grading, saving homeowners about $56 for fire insurance for a home valued at $150,000. Homeowners in New Orleans and west ofChef Menteur Pass could see a 2.2 percent decrease in annual premiums under the new grading, saving homeowners about $35 for fire insurance for a home valued at $150,000.

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On September 17, from 12:00 - 1:00 p.m., you can participate in this FREE webinar, which will cover the impacts of map changes on insurance requirements and rates. It was also provide rating options and messaging around those changes along with resources.

Click here to register.

Nebraska Insurance Director Bruce Ramge informed PIA of an email scam occurring in other states that targets insurance producers through emails. The unknown offending party has lifted logos from the National Association of Insurance Commissioners to make it appear that the emails are from the NAIC.

The NAIC issued this Consumer Alert:

"We are aware of a phishing scam targeting insurance producers regarding a falsified insurance claim related to their company that has been submitted to the National Association of Insurance Commissioners. This fraudulent email displays the NAIC and CIPR logo, can originate from an NAIC or Gmail account and asks the recipient to click on a link to download the complaint notification."

If you receive one of these emails or a similar email and have any concerns, contact the NAIC Service Desk at (816) 783-8500 or help@naic.org.

The National Association of Insurance Commissioners (NAIC) Insurance Data Security Model Law (MDL-668) was finalized in October 2017 and subsequently passed in South Carolina, Ohio, Michigan, Mississippi, Alabama, Delaware, and New Hampshire. Moreover, the NAIC model borrowed heavily from the New York Department of Financial Services Cybersecurity Regulation (23 N.Y.C.R.R. Part 500). The NAIC's 2017 passage of its model law set the stage for several state legislatures to include it on their legislative calendars beginning in 2018 and continuing today.

Most recently, Delaware and New Hampshire passed versions of the law; Delaware Governor John Carney (D) signed its iteration into law on July 31, and New Hampshire Governor Chris Sununu (R) signed its version on August 2. Below are some of the highlights of the Delaware law.

Like most of the earlier versions, the Delaware version of the law was based on the NAIC model and the South Carolina Insurance Data Security Act. Delaware's law applies to all "licensees," which are defined as people who are or should be licensed pursuant to the insurance laws of Delaware. Under the Delaware law, licensees are required to develop and put in place an information security program within one year from the date of passage of the law, and licensees are required to report some types of cybersecurity events to the Delaware insurance commissioner.

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