According to an article in The Insurance Journal U.S. Senators Bill Cassidy (R-La.) and Kristen Gillibrand (D-N.Y.) have released draft legislation to reauthorize the National Flood Insurance Program (NFIP) for 10 years. The NFIP is currently set to expire on Sept. 30, 2017.

The legislation, the Flood Insurance Affordability & Sustainability Act of 2017, would reauthorize the NFIP until 2027, which the sponsors say is needed to avoid uncertainty in both the insurance and housing markets.

The article also mentions a flood insurance report released the same day by the Government Accountability Office (GAO), GAO Highlights April 2017, that addresses similar issues and recommendations. The GAO report also urged Congress to consider forgiving the current debt of the NFIP but the Cassidy-Gillibrand proposal skips that recommendation.

The proposed legislation shares many of FIRM’s legislative priorities for reauthorization including a modified rate structure, more participation from properties outside the risk area, and mitigation credits.

FIRM has also learned that House Financial Services Chairman Jeb Hensarling (R-Tx.) hopes to enact a long-term reauthorization of the NFIP.  Hensarling is an outspoken critic of government intervention in financial markets and is not a fan of the NFIP.  However, Hensarling has acknowledged that many people rely on the NFIP.

Read the full Insurance Journal article:  Senate Bill Would Extend National Flood Insurance Program for 10 Years

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