BIG “I” HAILS HOUSE, SENATE MARKUPS OF TERRORISM, FLOOD BILLS
House, Senate committees voted on crucial legislation on both issues today
WASHINGTON, D.C., Nov. 16, 2005—The Independent Insurance Agents & Brokers of America (the Big “I”) is pleased that the House Financial Services Committee and Senate Banking Committee are moving ahead on legislation for a federal terrorism backstop, and also that the House committee has taken up reform of the National Flood Insurance Program (NFIP).
The committees both held markups today on legislation that would renew the federal terrorism backstop, and the House committee marked up the Oxley-Frank flood bill, H.R. 4320, the National Flood Insurance Program Commitment to Policyholders and Reform Act of 2005.
The terrorism legislation would help insure against catastrophic terrorism losses in place of the Terrorism Risk Insurance Act (TRIA), which expires Dec. 31. The House bill was introduced by Subcommittee Chairman Richard Baker (R-La.), in close cooperation with Financial Services Committee Chairman Mike Oxley (R-Ohio). In the Senate, Banking Committee Chairman Richard Shelby (R-Ala.) has been working with Sens. Christopher Dodd (D-Ct.), Robert Bennett (R-Utah) and Paul Sarbanes (D-Md.) on an amendment to S. 467, and this amendment passed the committee unanimously today.
“These are very important issues for insurance consumers and independent agents and brokers,” says Big “I” CEO Robert Rusbuldt. “Terrorism insurance is crucial for the businesses of America, and flood insurance reform is crucial for homeowners and businesses around the country. Too many times people are quick to jump on Congress for one thing or another. Today, it has produced some very positive legislation that is important for our nation’s economic security and for filling in coverage gaps for homeowners and businesses.”
“As independent insurance agents and brokers, we must deal with the real world every day. Terrorism coverage and flood coverage are crucial for our customers and the protection of their businesses, homes and families. We applaud the House and Senate Committees for producing thoughtful and needed legislation,” says Big “I” President Bill Stiglitz, an executive with Louisville, Ky.-based Hyland, Block & Hyland.
“Clearly, members of both chambers understand the need for federal action on a backstop against largely uninsurable terrorism risks,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “The clear urgency they have displayed in bringing this legislation to the table in both committees is a sign of recognition that this important program is about to expire and must be renewed for the good of the marketplace and consumers.”
The Big “I” has consistently supported the continuation of the current terrorism insurance backstop or a modified one, and it has noted in testimony before Congress that action is needed as soon as possible, since businesses and insurers are starting to make decisions that impact operations beyond the expiration of TRIA.
“We are pleased to see that both the Senate legislation and the House bill retain triggering-event levels and deductibles that are not exorbitant,” says Brendan Reilly, Big “I” director of federal government affairs. “To establish higher triggering levels or deductibles could have severe consequences on smaller businesses and our members, and could in turn create serious problems for the economy of Main Street America. These levels are reasonable and workable.”
The flood bill is expected to begin the process of enacting much-needed reforms to the NFIP. The Big “I” last week released a comprehensive package of 22 recommendations to modernize coverage, simplify processing and claims and expedite enforcement, among other needed changes, and many of these were adopted as part of the bill. Chief among these are the addition of optional business interruption coverage on commercial policies, increases in the maximum coverage limits, and the inclusion of additional living expenses coverage for residential policies. (Click here to see the Nov. 11 Big “I” proposal.)
Chairmen Oxley and Ranking Member Barney Frank (D-Mass.) introduced the bipartisan bill Tuesday.
“The Oxley-Frank bill contains many of the needed proposals to reform and preserve the National Flood Insurance Program for the foreseeable future,” Symington says. “We are very pleased that it provides new levels of coverage, such as business-interruption insurance, to help consumers, while at the same time addressing this vital program’s solvency. We thank Chairman Oxley and Ranking Member Frank, and their colleagues, for moving forward expeditiously on this important legislation.”
“This flood bill is the right bill at the right time,” says Patrick O’Brien, Big “I” director of federal government affairs. “It is good for consumers, and by strengthening the enforcement of mandatory participation and mitigation requirements, it will make the program stronger and help it survive.”
Founded in 1896, IIABA (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 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, and health—as well as employee benefit plans and retirement products. Web address: www.independentagent.com.
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