WASHINGTON – Jan. 5, 2012 – Congress passed, and President Obama signed, a four-month extension of the National Flood Insurance Program (NFIP) that now expires on May 31, 2012. The measure was part of H.R. 2055, the “Consolidated Appropriations Act,” signed Dec. 23, 2011.
Since 2002, NFIP has had 15 last-minute extensions and been allowed to lapse four times for extended periods of time.
Some insurance experts do not think the U.S. Senate will pass the House version of a long-term NFIP extension, which would authorize the program through Sept. 30, 2016. While the House and Senate have differences, both have bills that allow the Federal Emergency Management Agency (FEMA), which administers the flood insurance program, to buy private reinsurance and a provision to tighten subsidies that the program provides.
Some insurers, however, have voiced concerns about provisions that would provide FEMA with greater flexibility in paying its bills, especially in the Senate bill that would allow homeowners to pay their bill either annually or in installments. The House bill allows FEMA to determine whether homeowners pay annually, quarterly or monthly.
Source: PropertyCasualty360 (01/02/12) Postal, Arthur D.
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