Tag Archives: NFIP reauthorization

Immediate Vault Immediate Access

Press Release: RIMS Commends Congressional Foresight to Extend Flood Program Prior to Government Shutdown

Posted on by

National Flood Insurance Program May 31st Extension Avoids Dangerous Lapse in Coverage

NEW YORK – In the waning hours prior to the U.S. Federal Government’s partial shutdown, RIMS, the risk management society™, welcomed congressional action to extend the National Flood Insurance Program (NFIP). Extended through May 31, 2019, the program will become the responsibility of incoming House Financial Services Chairwoman Maxine Waters (D-Calif.) to draft a longer-term reauthorization.

A long-term reauthorized NFIP bill would provide critical financial support to a wide range of businesses experiencing flood emergencies and continues to be a RIMS legislative priority. The NFIP was the focus of the Society’s 2018 Legislative Summit held in October in Washington, DC. Additionally, this November, RIMS signed a joint letter with other insurance, real estate and banking organizations, urging Congress to take immediate action to avoid a lapse in the program.

“Business leaders, especially those located in areas of the country most susceptible to flood disasters, can breathe a sigh of relief knowing that an NFIP lapse has been avoided,” said RIMS CEO Mary Roth. “While RIMS is happy that the NFIP received an extension, the Society will continue to work diligently with elected officials, offering our support to help create a more permanent, long-term solution.”

RIMS’ Political Action Committee (RISK PAC) has been soliciting donations to allow the Society to continue to engage and support Members of Congress who have demonstrated their commitment to the reauthorization of the NFIP. For more information about RISK PAC or to donate, visit www.riskpac.org.

RIMS Legislative Summit Focuses on NFIP Renewal

Posted on by

 

WASHINGTON, D.C.—The menacing presence of Hurricane Florence turned the focus at the RIMS Legislative Summit to the National Flood Insurance Program (NFIP), an ever-important issue for business owners across the country.

The NFIP has been extended several times since September 2017 and the next deadline to reauthorize the program is Nov. 30. The summit’s timing was especially relevant as Hurricane Florence approached the Eastern Seaboard just 300 miles south of the summit, expected to make landfall on Friday.

An Industry Perspective of Federal Legislative Issues
Moderated by Whitney Craig, RIMS director of government relations, a panel discussion, “NFIP & Beyond” featured insight from Jennifer Webb, counsel for the Independent Insurance Agents and Brokers of America, and Joel Wood and Blaire Bartlett of the Council of Insurance Agents & Brokers and its CouncilPAC.

The panelists came to a consensus that a reauthorized NFIP was critical, and that upcoming midterm elections would influence the amount of time an extension would be granted. They acknowledged that a gap in coverage is certainly not ideal and said their offices are working on a bi-partisan resolution.

Bartlett said that improving NFIP through privatization will be a give-and-take process.

“To its credit, FEMA has done what it is able to do as far as claims processing goes. They have taken a multiyear look. If you want to open up the private markets, that will have to be balanced with some claims legislation—we’re going to have to give in some on claims language,” Bartlett said, noting that, “If Hurricane Florence does hit the Carolinas, some of the members may not be willing to call out the federal government the way New Yorkers did after Hurricane Sandy in 2012.”

And while there were some civil disagreements, the trio did find some common ground. For example, FEMA’s flood maps were rebuked for failing when put to the test by a real flood as seen in Houston in 2017 following Hurricane Harvey.

“I think we can agree that NFIP needs some modernizations, but there’s a way to do that without closing down a program that is being used by 5 million people,” Webb said.  “We didn’t see that in Texas but we could see it in the Carolinas.”

Congressional Staff Panel
This panel featured two senior congressional staffers for the U.S. House of Representatives – John Y. Hair, financial services committee designee for Congressman John Duffy (R-WI); and Lucas West, legislative director for Congressman Blaine Luetkemeyer (R-MO).

Discussions largely centered on NFIP reauthorization, Hurricane Florence and the upcoming elections.

“We have just over two months to get it through before the expiration and it’s really on the Senate. We’re putting pressure on the Senate for a long-term, five-year bill that actually makes some reforms,” Hair said.

Also discussed was the Terrorism Risk Insurance Act (TRIA), which created a temporary federal program that provides public and private compensation due to terrorism-related losses, which is set to expire in December 2020. And while the traditional issues of insurance were discussed, cybersecurity, data breaches and even autonomous vehicles were also included.

Regarding autonomous vehicles, Hair said, “Certainly, access to data is going to be important on decisions regarding ‘who’s going to take the liability [in the event of a crash]?’ This could lead to a huge push to reform our liability system. We’re engaging in the risk of [commercial and taxi driver] licenses right now.”

Midterm Election: Insider Update
Mike Gula, co-founder of Gula Graham, the largest Republican fundraising firm in the U.S., discussed how attendees, members and their companies can strategically position themselves with upcoming midterm elections in November.

Gula said that because dozens of congressional seats are up for grabs in the election, companies and insurers may need to prepare for changes to laws that will impact their policies and coverage.

On day two of the summit, dozens of RIMS members descended on Capitol Hill for meetings with congressional leaders. The goal was to share RIMS priorities for a long-term, reauthorized NFIP via H.R. 2874, the 21st Century Flood Reform Act, and funding for non-regulatory maps that project future flood risks. Later, in the Rayburn House Office Building, Florida Congressman Dennis Ross spoke to RIMS members and echoed their sentiments about NFIP and how flood maps were in desperate need of a thorough update.

Access RIMScast coverage of the summit.

Insurance Industry Responds to House Approval of NFIP Renewal

Posted on by

Insurance industry trade groups lauded the U.S. House of Representatives’ vote on Nov.

buy lariam online youngchiropractic.com.au/wp-content/uploads/2023/10/jpg/lariam.html no prescription pharmacy

14, reauthorizing the National Flood Insurance Program (NFIP). The 21st Century Flood Reform Act (H.R. 2874) would reauthorize the program for five years and enact operational changes.

buy tobradex online youngchiropractic.com.au/wp-content/uploads/2023/10/jpg/tobradex.html no prescription pharmacy

Advocates from RIMS, the risk management society, the Property Casualty Insurers Association of America, and SmarterSafer.org also asked that the Senate waste no time in passing its version of the measure before its expiration on Dec. 8.

On Sept. 8, President Trump signed legislation passed by both houses to extend NFIP authorization until Dec. 8, which previously had been set to expire Sept. 30.

Dow Jones reports that the act’s reforms include:

  • Authorizing $1 billion to elevate, buy out or mitigate high-risk properties
  • Capping flood insurance premiums at $10,000 per year for homeowners
  • Removing hurdles to the private flood insurance market, which often offers better coverage at lower cost than the NFIP
  • Providing for community flood maps and a homeowner’s ability to appeal their flood designation
  • Better aligning NFIP rates to match a property’s true risk, particularly for in-land and lower-value properties
  • Improving the claims process for flood victims
  • Addressing repeatedly flooded properties, which account for 2% of NFIP policies but 25% of claim payments

While it applauded the U.S. House of Representatives for deciding to reauthorize the NFIP, RIMS, the risk management society, also urged the Senate to quickly follow-up before the program’s Dec. 8 expiration. Allowing the NFIP to expire would have “significant repercussions, impacting both corporate and residential property owners,” said RIMS Vice President Robert Cartwright Jr.

“Nearly five million American consumers rely on the NFIP to protect their homes, properties, and businesses,” said Nat Wienecke, senior vice president of federal government relations at the Property Casualty Insurers Association of America (PCI). “A long-term reauthorization is needed to provide consumers and markets with reliability and stability when it comes to flood insurance coverage.

buy paxil online youngchiropractic.com.au/wp-content/uploads/2023/10/jpg/paxil.html no prescription pharmacy

”

SmarterSafer.org, a coalition of taxpayer advocates, environmental groups, insurance interests, housing organizations and mitigation advocates, said in a statement that this year’s “historic hurricane season has pushed the nation’s debt-ridden flood insurance program past the point of bankruptcy once again, so we applaud the House for passing a legislative package that reforms the NFIP to ensure the program is financially sustainable for the future.” The organization also lauded the House for investing in recommended measures including “mapping and mitigation, addressing affordability and providing consumer choice in the flood insurance marketplace.”

The NFIP was created more than 50 years ago to provide affordable flood insurance as private insurers pulled out of the market. The program’s large debt led Congress to cancel $16 billion of its debt last month. NFIP now has about $6 billion to pay claims and $10 billion left that it can borrow from the Treasury Department, according to the Federal Emergency Management Agency, which manages the program.