Flood Insurance Update 1-28-2014

dennishendrickson  -  Jan 28, 2014  -  Comments Off

Flood reform cleared an important hurdle Monday with a vote that could lead to a four year delay of the Flood Reform Act. However this is only an advance to the final vote and there is still opposition to the reform delay. Below are recent snippets of news articles presenting more detail:

Updated 1-29-2014

(Insurance Journal) - White House Balks at Flood Insurance Delay, Agent Licensing Bill 

The Obama Administration has problems with the Senate bill that would delay flood insurance premium increases and create an agent licensing registry.

The bill, S.1926, was cleared for debate on a procedural vote, 86-13, Monday evening. It has more than 30 sponsors from both parties in the Senate. Lead sponsors are Sen. Robert Menendez, D.-N.J., and Sen. Johnny Isakson, R.-Ga.

If it passes the Senate, the flood insurance reform delay faces an uphill battle in the House where leadership has said it opposes the delay.

Now the bill also faces criticism from the White House, although the statement yesterday from the White House’s Office of Management and Budget (OMB) stopped short of threatening a veto.

Read The Full Article Here

(New York Times) –  A major flood insurance bill was a rarity when it passed what is widely derided as a do-nothing Congress in 2012, but a year and a half later, there is now an enthusiastic bipartisan effort to gut it.

Tucked into broader transportation legislation, the bill had enthusiastic support across the political spectrum, from liberal environmentalists to fiscal conservatives.

But Ms. Waters is now leading an effort in the House to gut the legislation she sponsored. And this week, the Senate is expected to pass a measure that would stymie the law, an effort that has support from across the political spectrum, from prominent liberals like Senator Elizabeth Warren, Democrat of Massachusetts, to conservatives like Senator Marco Rubio, Republican of Florida.

Read The Full Article Here

(USA Today) -The Senate cleared a procedural hurdle on a bill to delay new flood insurance premiums. The legislation delays premium hikes for four years until clear standards are established.

(Reuters) – A bipartisan bill to delay dramatic increases in federal flood insurance premiums for millions of American homeowners and small businesses cleared a Republican procedural roadblock in the U.S. Senate on Monday.

On a vote of 86-13, the Senate agreed to advance the Homeowners Flood Insurance Affordability Act, which would postpone for four years rate hikes of up to 10 fold and more.

A vote on Senate passage of the bill could come later this week after consideration of a number of possible amendments offered by members on both sides of the political aisle.

Republicans could still end up blocking the measure if they feel that they were not given an adequate chance to amend it, a senior aide said.

The Senate bill would delay premium hikes for four years to give the Federal Emergency Management Agency time to finish an affordability study and re-evaluate the accuracy of its new maps of flood areas.

During this delay, Congress would consider possible changes in the insurance program to protect homeowners as well as taxpayers.

The Senate bill is backed by a number of groups, including the National Association of Homebuilders, the National Association of Realtors, and the American Bankers Association.

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