This morning, President Obama signed the Continuing Resolution Act of 2012 to save the National Flood Insurance Program from expiring until November 18th, 2011 (www.cnn.com). This short term extension brings hope that Congress will be allotted enough time to work on the long term reforms of the flood legislation surrounding the Flood Insurance Reform and Modernization Act of 2011.
John Prible, VP of federal government affairs for the Independent Insurance Agents & Brokers of America says of the temporary extension, “We are now closer to achieving a long-term reform and extension bill than at any point in recent memory and we urge Congressional leadership to finally push this over the finish line.” Passing of the Flood Insurance Reform and Modernization Act of 2011 would bring “significant restructuring of the cash strapped program by expanding mandatory coverage areas and introducing actuarially sound rates by enabling the Federal Emergency Management Agency (FEMA) to increase premiums by 15 percent per year.” (www.insurancenetworking.com). The Act would also seek more accurate methods of flood mapping and would also grant FEMA the authority to collect claim payment information from private insurers participating in the Write Your Own Program. If this Flood Insurance Reform and Modernization Act of 2011 is passed, financing of the National Flood Insurance Program would be extended through 2016.
We stand waiting with high hopes that Congress will utilize the next six weeks they’ve been granted to consider the long term extension and reform efforts of the flood insurance program.