The Independent Insurance Agents & Brokers of America (IIABA or the Big "I") today praised President Barack Obama for signing the "Biggert-Waters Flood Insurance Reform and Modernization Act of 2012" into law. The new law extends the National Flood Insurance Program (NFIP) for five years and makes needed reforms to the program.
The Senate and House passed the legislation last week as part of a Conference Report package along with the Surface Transportation Act of 2012 and an extension of the Federal Direct Stafford Student Loan program.
"The Big 'I' commends President Obama and Congress for working together, and in a bipartisan fashion, to protect millions of homeowners and businesses across the country who are threatened by flooding," says Robert Rusbuldt, Big "I" president & CEO. "The Big 'I' looks forward to the implementation of the many provisions that will help put the program on more solid financial footing."
The legislation that was signed into law today will extend the NFIP for five years, until Sept. 30, 2017, and make important reforms to modernize the NFIP. These include phasing out subsidies for many properties, raising the cap on annual premium increases from 10% to 20%, allowing multifamily properties to purchase NFIP policies, imposing minimum deductibles for flood claims, requiring the NFIP administrator to develop a plan for repaying the debt incurred from Hurricane Katrina, and establishing a technical mapping advisory council to deal with map modernization issues. The new law will also require the Government Accountability Office (GAO) to conduct a study on the prospect of adding business interruption and additional living expenses coverages to the NFIP and would require the Federal Insurance Office (FIO) to study and submit a report to Congress on natural disaster insurance issues and possible legislative solutions.
"This legislation has been a top priority of the Big 'I' for the last several years, and we are very proud today that this balanced, bipartisan bill that will protect both consumers and taxpayers has finally been signed into law," said Charles Symington, Big "I" senior vice president of government affairs. "In particular, the Big 'I' would like to thank Chairmen Spencer Bachus (R-Ala.) and Tim Johnson (D-S.D.), Ranking Members Barney Frank (D-Mass.) and Richard Shelby (R-Ala.), Reps. Judy Biggert (R-Ill.) and Maxine Waters (D-Calif.), and Sens. Jon Tester (D-Mont.) and David Vitter (R-La.) for their leadership and hard work in this endeavor."