WASHINGTON, June 29 -- The American Insurance Association issued the following news release:
Tom Santos, vice president for federal affairs at the American Insurance Association (AIA), issued a statement following Congress' passage of legislation to reauthorize and reform the National Flood Insurance Program (NFIP) for five years. The legislation, part of the transportation conference report, will reauthorize and make significant and critical reforms to the NFIP. Congress recently passed a short-term 60-day extension but the program was scheduled to expire on July 31. The president is expected to sign the legislation into law.
Mr. Santos' statement follows:
"AIA commends the Congress, for passing the 'Biggert-Waters Flood Insurance Reform Act', legislation that contains meaningful reforms and provides a long-term reauthorization of the NFIP. The bill includes critical reforms that will put the program on more solid financial footing and protect its 5.6 million policyholders for years to come.
"Congress recognized that reforms including movement toward fiscal soundness by eliminating premium subsidies, and moving toward risk-based pricing are necessary for the long-term stability of the program. These reforms make significant progress towards protecting consumers and taxpayers, and improving the NFIP.
"AIA has consistently advocated for a long-term reauthorization of the NFIP to protect consumers and help increase stability for real estate transactions and policyholders. The five-year extension will provide certainty in the flood insurance program thereby increasing consumer and business confidence in the NFIP."
TNS LE-120630-JF78-3933797 StaffFurigay