Today, the U.S. House of Representatives passed H.R. 2901, the “Flood Insurance Market Parity and Modernization Act” by Reps. Dennis Ross (R-Florida) and Patrick Murphy (D-Florida), by a vote of 419-0.

The Big “I” is pleased with the advancement of this important legislation, calls on the U.S. Senate to act in kind and looks forward to working with Congress as it considers a full reauthorization of the NFIP ahead of its Sept. 30, 2017 expiration.

H.R. 2901 clarifies that state regulators have authority over private flood insurance and ensures that policyholders can return to the NFIP without losing their grandfathered status or subsidy, in the event that they had previously left the program and obtained coverage in the private market which no longer meets their needs.

This is an important safeguard for consumers and an important errors & omissions protection for agents. H.R. 2901 will help provide more choices for consumers when they purchase flood coverage for their home or business, as the legislation makes clear that a private flood policy can satisfy the mandatory purchase requirement for flood insurance. The Big “I” now asks the Senate to pass companion legislation, S. 1679, the “Flood Insurance Market Parity Act,” by Sens. Dean Heller (R-Nevada) and Jon Tester (D-Montana).

The Big “I” is also working with Congress ahead of the next program reauthorization. During a January subcommittee hearing on the future of the NFIP, the Big “I” testified in favor of H.R. 2901, expressing support for allowing the private market—where possible and practical—to offer flood insurance as a complement to the NFIP. As the only representative of agents and brokers to provide a witness for the hearing, the association also testified regarding the NFIP’s critical role in today’s economy, the important responsibilities agents bear in servicing NFIP policies and the need for consistency and certainty within the program. 

The Big “I” supports a long-term extension of the current NFIP and believes the private market has a limited role to play as a complement, not a replacement, to the program. As discussions about the next flood reauthorization continue, the association will highlight the essential role agents paly in delivering flood insurance through the WYO program and how agents are uniquely trained and knowledgeable about NFIP details. 

The Big “I” advocated for this legislation as well as a long-term extension of the current NFIP at the recent Big “I” Legislative Conference.

Jen McPhillips is Big “I” assistant vice president of federal government affairs.