NAMIC To Congress: Long-Term Extension and Reform of NFIP Imperative

29 July 2009

NAMIC (Washington, D.C.)—Kathy Mitchell, federal affairs director for the National Association of Mutual Insurance Companies (NAMIC) commented on the July 29 House vote to extend the National Flood Insurance Program (NFIP) through March 31, 2010. Mitchelle lauded the extension, but pointed out the critical need to reform NFIP and subsequently provide a long-term extension the program.

“NAMIC supports several NFIP reforms that include mandated updates of the nation’s flood maps, the phase-in of actuarially sound rates for non-residential and non-primary residences, increased financial institution penalties for non-compliance, and the forgiveness of the program’s now more than $19 billion debt. If these reforms are adopted, it will move the program toward a healthier financial future. Additionally, it is critical to not include a provision for mandatory wind coverage which would only saddle the NFIP with even more debt and disrupt the entire national marketplace.”

Mitchelle indicated that the Obama administration is also opposed to the addition of wind in NFIP reform, but supports debt forgiveness.

Source: http://www.namic.org/newsreleases09/090729nr1.asp (Reliability 7)