BIG “I” HAILS CONGRESSIONAL ACTION ON FLOOD BORROWING AUTHORITY
Extension of authority will fund claims in wake of active hurricane season
WASHINGTON, D.C., Nov. 18, 2005—The Independent Insurance Agents & Brokers of America (the Big “I”) supports today’s work by Congress to extend the borrowing authority of the National Flood Insurance Program (NFIP). The Senate voted today to take this needed step; House action is pending and expected late Friday.
The Federal Emergency Management Agency (FEMA) distributed a memo to Write-Your-Own companies Nov. 11 informing them that lines of credit were suspended until further Congressional action regarding an extension of borrowing authority. With claims expected to exceed $23 billion, extended borrowing authority was necessary in order to meet consumer needs.
“Both chambers of Congress have stepped up to the plate, with the Senate moving forward and the House poised to do the same,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “Today’s action will help the NFIP once again to extend a line of credit to Write-Your-Own companies for the payment of claims. This will help insurance buyers get the service they need and have a right to expect. We thank Chairmen Mike Oxley (R-Ohio) and Richard Shelby (R-Ala.) and the leaders in the House and the Senate for moving swiftly to address this issue.”
The initial borrowing limit of $1.5 billion from the U.S. Treasury was extended by Congress in the immediate wake of Hurricanes Katrina and Rita, but even this extension was inadequate to meet the anticipated claims.
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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