The bipartisan bill, introduced by Rep. Scott Garrett (R-N.J.) and House Financial Services Committee Chairman Barney Frank (D-Mass.), will help phase out subsidies for homes built before flood insurance rate maps went into effect in 1974. Ending these subsidies is a crucial step toward making the NFIP actuarially sound.
“This bill is a great start to the 2008 flood insurance reform efforts and illustrates Congressional commitment to strengthen the NFIP for policyholders and taxpayers across America,” said Paul Kangas, PCI’s director, federal government relations. "PCI has long supported reforms that would shore up the National Flood Insurance Program’s solvency, and we believe that H.R. 3959 will help get us closer to that goal. We commend Congressman Garrett and Chairman Frank for introducing this legislation, and we strongly support it as it moves to the Senate for consideration.”
About PCI
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $194 billion in annual premium, 40.1 percent of the nation’s property/casualty insurance. Member companies write 51.3 percent of the U.S. automobile insurance market, 39 percent of the homeowners market, 32.1 percent of the commercial property and liability market, and 38.7 percent of the private workers compensation market.