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Big “I” Applauds House Committee Action on Flood Insurance Bill
Legislation would ensure private policies will count as continuous coverage under NFIP terms.
WASHINGTON, D.C., March 2, 2016—The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today applauds the U.S. House of Representatives Committee on Financial Services for reporting 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.
This bill ensures that policyholders will not lose their flood insurance subsidies or their grandfathered status should they decide to move their coverage from the National Flood Insurance Program (NFIP) to a private market policy and one day wish to return to the NFIP.
“This is critical language for independent insurance agents and their customers,” says Charles Symington, Big “I” senior vice president for external and government affairs. “We would like to thank the bill sponsors for including language in the legislation that categorically states that having an active flood insurance policy, whether that be through the NFIP or through the private market, is considered ‘continuous coverage for the mandatory purchase requirement’.”
This language ensures that consumers can move seamlessly between the NFIP and the private market, and provides more choices for flood coverage. The bill also clarifies 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 Big ‘I’ thanks Reps. Ross and Murphy for introducing this important legislation that appropriately confirms the authority of state insurance regulators to define what is ‘acceptable’ private market flood insurance in lieu of an NFIP policy,” continues Symington. “This language further strengthens the flood insurance market by increasing the likelihood that private insurers will continue to explore entering the flood insurance market as a complement to the NFIP, which is a critical program to millions of consumers across the country. We urge the full House to consider this legislation quickly.”
Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of approximately a quarter of a million agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address: www.independentagent.com.