Big ‘I’ Applauds Committee Action on Flood Reform Bill

Earlier this week, the U.S. House of Representatives Committee on Financial Services reported H.R. 2901, the “Flood Insurance Market Parity and Modernization Act,” by Reps. Dennis Ross (R-Florida) and Patrick Murphy (D-Florida), to the full House for consideration. The Big “I” applauds the committee for passing this legislation.

Of importance to Big “I” members, H.R. 2901 clarifies that a flood insurance policy purchased in the private market can count as “continuous coverage” under the terms of the National Flood Insurance Program (NFIP). This ensures policyholders will not lose their flood insurance subsidies or grandfathered status if they move their coverage from the NFIP to the private market and one day switch back to the NFIP. The bill also states that a private flood policy can satisfy the mandatory purchase requirement for flood insurance and that state insurance regulators possess the authority to make that determination.

The NFIP is up for reauthorization in September 2017, and Congress has begun holding hearings and exploring ways to reform the program. During a January subcommittee hearing on the future of the NFIP, the Big “I” testified in favor of H.R. 2901 and expressed support for allowing the private market—where possible and practical—to offer flood insurance as a complement to the NFIP. The association was the only representative of agents and brokers to provide a witness for the hearing and testify on the NFIP’s critical role in today’s economy, the responsibilities agents bear in servicing NFIP policies and the need for consistency and certainty within the program.

The Big “I” strongly supports a reformed and modernized NFIP. As discussions about the next flood reauthorization continue, the association will focus on highlighting the essential role agents play in the delivery of flood insurance through the Write Your Own program and their unique training and knowledge regarding NFIP details.

At the upcoming Legislative Conference in April, agents will advocate for a long-term reauthorization of the NFIP and common sense reforms that will strengthen the policyholder base and encourage more participation.

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