PIA Urges House to Pass 5-Year Flood Insurance Extension Bill

Main Street Insurance Agents Strongly Support H.R. 5114

WASHINGTON, July 13 /PRNewswire-USNewswire/ -- The National Association of Professional Insurance Agents (PIA) has sent a letter to House Speaker Nancy Pelosi and Minority Leader John Boehner urging that the House quickly pass H.R. 5114, the Flood Insurance Reform and Priorities Act of 2010. The bill by Rep. Maxine Waters (D-Calif.), which would reform the National Flood Insurance Program (NFIP) and extend it for a full five years, is expected to be considered on the House floor this Thursday, July 15.

"There is broad consensus that the National Flood Insurance Program is a vital component of America's economic prosperity that provides affordable protection to homeowners and business owners," PIA's letter states. "PIA strongly supports the NFIP because it has been protecting us from flood risks since its inception over 40 years ago. We urge you to bring this bill to the floor and that it be passed quickly."

H.R. 5114 was passed by the House Financial Services Committee on May 26. It would reauthorize the program for five years and make other reforms, including increasing NFIP coverage limits, phasing in actuarial property rates and phasing out premium subsidies for second and vacation homes and making business interruption and additional living expense coverages available at actuarial cost. H.R. 5114 has yet to advance in the Senate.

"This bill contains many provisions that PIA has consistently advocated," said PIA National Director of Federal Affairs Mike Becker. "Perhaps most significantly, H.R. 5114 extends the flood insurance program through the end of 2015. This would finally end the uncertainty that has resulted from a series of short-term NFIP reauthorizations."

Allowing the flood insurance program to regularly lapse, something that has occurred over the past few years, makes it much more difficult to convince those who need flood insurance to buy it, leaving America's homes and businesses uninsured, noted the letter signed by PIA National President Jon D. Spalding and Executive Vice President & CEO Leonard C. Brevik.

"Permitting uncertainty regarding the long-term future of a program that enjoys broad bipartisan support has had the unintended consequence of delaying real estate closings at a time when our nation is struggling to build a sustainable economic recovery," states the PIA letter. "This has occurred at the same time that we are dealing with an environmental disaster in the Gulf of Mexico and facing the prospect of an active hurricane season."

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America (SM). PIA's web address is www.pianet.com.

This press release online at: http://www.pianet.org/NewsCenter/PressReleases/07-13-10.htm

PIA 7/13/10 letter to House leaders on H.R. 5114: http://www.pianet.org/NR/rdonlyres/70C128D8-6E1B-4C17-BF0A-36FFCD61BEE7/19961/LetterToPelosiandBoehner_July132010.pdf

SOURCE National Association of Professional Insurance Agents