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House Passes NFIP Renewal with WYO Cut

On November 14, the House of Representatives passed the 21st Century Flood Reform Act (H.R. 2874). PIA opposed the bill.
House Passes NFIP Renewal with WYO Cut

Jon Gentile

November 21, 2017

On November 14, the House of Representatives passed the 21st Century Flood Reform Act (H.R. 2874). PIA opposed the bill over the provision that cuts the Write-Your-Own (WYO) reimbursement rate paid to insurance companies that participate in the NFIP by 3 percentage points. The WYO reimbursement rate is the vehicle by which agents receive their commissions for selling NFIP policies. Many WYO carriers have stated that, for them to remain in the program, they will pass on the cut to agents through their commissions.

READ: PIA Statement on Passage of House Flood Legislation

“H.R. 2874 includes some important reforms to the National Flood Insurance Program (NFIP), such as revamping mapping and mitigation programs and including a mechanism for consumers and communities to appeal FEMA decisions,” said PIA National Vice President of Government Relations Jon Gentile, in an article in Best’s Review.

READ: PIA Standing Firm for Agents and Flood Insurance

“One of the goals of reforming the NFIP is to increase sales of policies, especially preferred risk policies, to put the program on a firmer financial footing. Reducing agent compensation undermines that goal by applying a disincentive for agents to increase sales,” Gentile said. “PIA will continue to work with Congress to provide a strong and robust protection for agent compensation, so consumers will have the expertise they need to navigate the NFIP, and the program itself can achieve the increased level of participation it requires to be financially strong.” The bill now goes to the Senate.

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