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More Info on the Lapse in the National Flood Insurance Program

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PIA producer update
President signs stopgap for NFIP as part of COBRA subsidy extension
This morning, President Obama signed into law (H.R. 4691), which provides a stopgap extension of federal subsidies of COBRA health-care premiums until March 31. The law also extends the National Flood Insurance Program for just 30 days, until March 28. PIA recommended that the interim extension be for at least six months.
The flood program slipped into a technical lapse at midnight on Feb. 28, 2010, after Sen. Jim Bunning (R-Ky.) blocked passage under unanimous consent of a bill to extend unemployment and COBRA benefits. The extension of the National Flood Insurance Program (NFIP) was attached to that bill.
Congress has been extending the flood insurance program for short intervals over the past two years. Efforts to enact comprehensive reforms to the NFIP have been stymied in recent years over two issues: proposals to add coverage for wind damage to the flood program and forgiving the nearly $20 billion debt amassed by the program as a result of catastrophic storms in 2004 and 2005. PIA opposes inclusion of wind coverage in the NFIP program and supports debt forgiveness.
PIA has decried the lapse and continues to call for a comprehensive flood insurance reform, including a five-year authorization.
PIA is the Professional Insurance Agents national group.

For more information on Flood Insurance, call us at 1-800-548-2329

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