Congress introduces key legislative reform for definition of private flood insurance

NAPSLO is pleased to support the Flood Insurance Market Parity and Modernization Act of 2014 (HR 4558), sponsored by Rep. Dennis Ross (R-FL) and Rep. Patrick Murphy (D-FL) and S. 2381, sponsored by Sen. Dean Heller (R-NV) and Sen. Jon Tester (D-MT). If passed, this critical legislation revises the federal definition of private flood insurance to ensure surplus lines insurers are eligible to provide private market solutions to consumers in need of solutions to unique and complex flood risks.

Although nonadmitted insurance companies are currently allowed to provide private flood insurance, revising the definition of private flood insurance to clarify their eligibility to provide insurance in the insured’s home state, in accordance with the Nonadmitted and Reinsurance Reform Act of 2010, ensures policyholders access to high-quality nonadmitted market alternatives.

Earlier this year, Sen. Heller introduced a similar amendment during the flood debate of S. 1296, the Homeowner Flood Insurance Affordability Act. NAPSLO provided extensive input and education on that Amendment. Although it was narrowly defeated 50-49 in the Senate, and was not ultimately included in the final version of the House bill that passed as the same Act, an up swell of support for the Amendment developed in both Chambers, especially by the new stand-alone bills’ sponsors.

NAPSLO met with Representative Ross and Senator Heller, as well as Senator Tester’s office, in Washington, D.C. during our May Legislative Fly-In to urge support for this much needed legislation. We applaud all four Members of Congress on their introduction of this common-sense legislation and look forward to providing support as the bill moves through the legislative process.