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Draft Flood Bill Released in Senate

A discussion draft of a bill has been released (not yet introduced) by Senators Kirsten Gillibrand (D-NY) and Bill Cassidy (R-LA) that would reauthorize the National Flood Insurance Program for 10 years and make several reforms to the program, such as...
May 2, 2017

A discussion draft of a bill has been released (not yet introduced) by Senators Kirsten Gillibrand (D-NY) and Bill Cassidy (R-LA) that would reauthorize the National Flood Insurance Program (NFIP) for 10 years and make several reforms to the program, such as, but not limited to, revamping the claims and appeals process for consumers, incentivizing private market growth, allowing mitigation to lower premiums, and providing affordability vouchers to certain policyholders.  The NFIP is currently set to expire on September 30, 2017.

Other bills to increase private participation have also been authored. For example, Sens. Dean Heller (R-NV) and Jon Tester (D-MT), re-introduced the Flood Insurance Market Parity and Modernization Act (S. 563/H.R. 1422).

On the House side, which is expected to consider legislation before the Senate, the House Financial Services Committee leadership has been working on legislation for nearly a year now and is expected to release their discussion draft soon. It is very likely that the House bill will lower the Write-Your-Own (WYO) reimbursement percentage of 30.9 percent, which is used to pay administrative expenses as well as agent commissions, among other things. In turn, this may lead to a cut in agent commissions. PIA National opposes any effort to lower the 30.9 percent cap.

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