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Insurance problems and cures

Flood Insurance to expire 9/30

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Here we go again. Congress has no problem inconveniencing property owners and business people. These repeated disruptions come about because two senators play chicken with the re-authorization, trying to hold up the bill to get their version passed. Their version doesn’t have support and would bankrupt the program even more deeply, but facts are not a problem in Washington. Here’s what we just got from Travelers Insurance, which is one of the servicing companies.

“Dear Travelers Flood Agent,
We are writing to provide you with an update on the National Flood Insurance Program (NFIP).
As you are likely aware, in July, Congress passed a bill that extended the statutory authority to issue flood policies pursuant to the NFIP. The NFIP is due to expire again on September 30, 2010.
Over the past several months, we have continued to work with the industry trades and FEMA, both
of which are hopeful that Congress will pass another extension prior to the September 30, 2010 deadline. While we are hopeful that Congress will pass the necessary bill, we believe it is important
to provide you with the necessary information in the event Congress does not take action prior to the expiration of the Program.
Under existing statutory authority, we can process and issue policies for all new applications, renewals and endorsements for coverage changes, provided they are accompanied by the appropriate premium and received in our offices on or before September 30, 2010, regardless of the actual effective date of the policy.
Should Congress fail to extend the program on or before September 30, 2010 we would not be able
to process or issue policies until the NFIP was re-authorized. “

Written by gbwinsurance

September 20, 2010 at 7:50 pm

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