The Republican lawsuit targets reinsurance that helps insurance companies provide universal coverage without accounting for pre-existing conditions.
WASHINGTON, Feb. 6 -- Rep. William Cassidy, R-La. (6th CD), issued the following news release:
Today, Congressman Bill Cassidy, M.D. responded to the announcement by the Federal Insurance and Mitigation Administration that flood insurance rate hikes on homes and businesses which are affected by Section 207 of the Biggert-Waters Flood Insurance Reform Act will be delayed for another 12-18 months following the official expiration of the Cassidy Amendment. This means that thanks to the Cassidy Amendment, section 207 grandfathered rate hikes could be suspended as long as June 2016 for up to 400,000 Louisianans. Dr. Cassidy released the following statement:
"This is great news for many working families in Louisiana. This announcement means that nearly 400,000 Louisiana homeowners won't face flood insurance rate hikes as long as June 2016. Meanwhile, we will continue working for longer-term and permanent flood insurance reforms."
The Cassidy Amendment, which became law in January as part of the Consolidated Appropriations Act of 2014, officially suspended flood insurance rate hikes for homeowners who have grandfathered rates that fall under Section 207 of the Biggert-Waters Act through October 2014. However, because the amendment prevents FEMA from conducting planning and development activities to implement Section 207, the rate hike delay will be longer.
According to the Federal Insurance and Mitigation Administration, "once Congress has restored funding for this activity, the NFIP (National Flood Insurance Program) expects an additional 12-18 months would be required for FEMA to develop guidance materials to then release to the Write Your Own companies regarding the implementation of Section 1308(h)." This means that flood insurance rate hikes under Section 207 will not begin at least until October 2015 and potentially not until June 2016.
A copy of the bulletin released by Federal Insurance and Mitigation Administration Associate Administrator David Miller is available here.
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