PIA Supports Raising NFIP Borrowing Authority
|PR Newswire Association LLC|
Officials estimate the NFIP could receive 143,000 claims from Sandy totaling as much as
The PIA National Government Affairs Committee unanimously supports an expected request from
"Since Hurricane Katrina and until Sandy, NFIP claims have been managed with no additional request for funds," said PIA National President
"Since the National Flood Insurance Program is the insurer and its policyholders suffered damage that was covered under insurance policies that they bought and paid for, the federal government is required to pay valid claims under the NFIP," Harris said. "Not paying valid claims is simply not an option. The federal government has both a legal obligation and a moral imperative to pay to indemnify policyholders for their covered flood losses in policies backed by the NFIP."
PIA notes that it is unfortunate that reforms to the NFIP as part of the Biggert-Waters Flood Insurance Reform Act of 2012 and signed into law
"Time is needed to implement these reforms," Harris said. "Time is also needed by any well run government or private sector insurance program for premium reserves to build up. This requires several years of little or no claims payouts due to minimal flooding events. However if, as in the case with the NFIP, premium reserves are constantly being called on because of a rash of flooding events, then when a really big one such as Sandy hits, reserves will be insufficient. But regardless of this the NFIP, on behalf of the federal government, must continue to respond."
PIA serves on working groups formed by the
"Unfortunately, Sandy did not wait for the flood insurance reforms to take full effect," said
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM.PIA's web address is http://www.pianet.com.
This press release online at: http://www.pianet.com/news/press-releases/2012/nfip112012