As we previously reported here, earlier this week the U.S. Senate passed the Flood Insurance Program Reextension Act of 2010 (S. 3814) (the “Act”) to extend the National Flood Insurance Program (“NFIP”) from September 30, 2010 to September 30, 2011. The U.S. House of Representatives passed the Act yesterday. The Act is expected to be signed by President Obama shortly.
The insurance industry has applauded Congress for passing the one-year extension in an effort to halt a series of short term extensions and several lapses in the NFIP during the last year, but reminded Congress that further work is needed as the Act does not address recommended reforms to the NFIP attempting to stabilize the program and to decrease the NFIP’s current $18 billion debt.
David Sampson, president and CEO of the Property Casualty Insurers of America, stated, “While we are pleased that Congress passed the one-year extension, there is still work to be done in the 112th Congress . . . . With over $18 billion in debt, the NFIP is a program that needs meaningful reform and a long-term reauthorization.” Melissa Shelk, vice president for federal affairs at the American Insurance Association, stated, “We’re very pleased that it’s been recognized that short-term extensions and lapses of the program are not the way to go, and that we were able to pass and enact a one-year extension . . . .The reality is we all support a re-authorization bill that addresses the fundamental problems that the program faces.”