The NFIP is set to expire tomorrow as part of a broader government funding debate, unless Congress passes a continuing resolution to keep the federal government open.
At press time, the Big “I” is cautiously optimistic that action will occur on a short-term funding bill to keep the federal government open through mid-February. The measure also includes a temporary NFIP reauthorization as deliberations over a longer-term reauthorization and reforms continue. However, negotiations are ongoing and no agreement to fund the federal government has been reached. Congress previously passed a stop-gap measure to keep the government funded into January.
Late last year, FEMA, which operates the NFIP, released a memorandum to those involved in the NFIP outlining procedures if the program lapses. The Big “I” worked with FEMA on the guidance.
The guidance states that during a lapse in authority, a WYO company may not issue policies for new business or respond to requests to increase or add coverage that are initiated during the lapse. In addition, WYO companies cannot issue renewal notices during the lapse.
Insurance agents and brokers who sell and service NFIP policies should be in touch with the WYO companies that they work with if they have questions about procedures in the event of a lapse in NFIP authority.
The Big “I” will continue to update members through the News &Views e-newsletters and other channels on the status of government funding and the NFIP.
Jennifer Webb is Big “I” federal government affairs counsel.