Big “I” Government Affairs Update Flood Insurance Extension Bill Passes House The House of Representatives has overwhelmingly passed H.R. 1309, the Flood Insurance Reform Act of 2011. This legislation extends the National Flood Insurance Program (NFIP) for 5 years and makes needed reforms to the program. The Big “I” STRONGLY supported H.R. 1309 and lobbied aggressively for its passage. The final vote on passage was a landslide at 406 yeas – 22 nays. In addition to the 5 year extension of the NFIP, the Flood Insurance Reform Act also phases out subsidies from many properties, indexes the maximum coverage limits to inflation (retroactive to 1994), increases the annual limit on premium increases from 10% to 20%, allows FEMA to offer optional business interruption and additional living expenses coverage if certain conditions are met, provides that consumers can make premium payments in quarterly installments instead of a lump sum, and provides a phasein of actuarial rates for properties that are mapped into a mandatory purchase requirement due to the ongoing map modernization project. In addition to securing an overwhelming vote for final passage, the Big “I” also scored tremendous wins during the amendment process. In fact, the Big “I” took a formal position on 6 important amendments, and we won on ALL six amendment votes. Below are the key amendments that the Big I took a position on and their results. Flake DEFEATED 118 – 305 - Would have eliminated business interruption and additional living expenses coverages. It should be noted that the conservative think-tank the Heritage Foundation key-voted a YES vote on this amendment. Miller DEFEATED 38 - 384 - Would have terminated the National Flood Insurance Program by 2013. Sherman/Bachus/Meeks ACCEPTED BY VOICE VOTE - Directs FEMA to limit the NFIP Direct program to 10% of total NFIP policies, to transfer excess policies back onto the WYO carriers, and authorize FEMA to refuse future transfer of policies to NFIP Direct. Ros-Lehtinen DEFEATED BY VOICE VOTE - Would have eliminated the increase in annual limit on premium increases from 10% to 20%.
Speier DEFEATED- Would have forced lenders to accept flood insurance on the outstanding principal balance of the loan as opposed to full replacement cost. Westmoreland ACCEPTED BY VOICE VOTE - Adds a reserve fund requirement to the NFIP.
In, above and outside of the NFIP Flooding occurs anywhere – at any time! So every property customer of an IIABA member agent has a need for flood insurance. They may not be required to have flood insurance as a condition of their loan, but because it can rain anywhere, there is a need for flood insurance everywhere. The Big “I” Flood Program with company partners, offers flood coverage within, above and outside of the National Flood Insurance Program (NFIP). Selective Insurance, our endorsed WYO offers the primary NFIP policies with an ease of doing business, competitive commission and the latest technology for quoting, placing and servicing of flood insurance. With expert and dedicated staff at the Big “I” and Selective Flood Operations, we are able to help the agent through the entire sales process as well as provide the underwriting and claims handling necessary to retain the business. If higher limits are needed above what NFIP has to offer, Wells Fargo Special Risks and their in-house underwriters are available through a Big “I” Markets submission providing excess flood limits over any NFIP policy to an aggregate $20,000,000 limit using various Lloyds of London syndicates. And if you happen to have a property that is ineligible for the NFIP such as one located in a Non-Participating Community or has been designated as a Coastal Barrier Resources Act or Other Protected Property, Wells Fargo Special Risk can help with those properties as well. Our program has been changing to keep up with the marketplace, so check out our program information at www.iiaba.net/flood or www.bigimarkets.com . Contact: Linda Mackey, CIC, CISR, AIMA, Big “I” Flood Program Manager at 800-221-7917, Ext. 5380 or e-mail: linda.mackey@iiaba.net .
Independent Insurance Agents of Connecticut - www.iiact.org - August 2011
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