PIA Opposes House Flood Legislation
PIA has reiterated its opposition to the House Flood Insurance legislative package first passed out of the House Financial Services Committee in June, and now consolidated as H.R. 2874, the 21st Century Flood Reform Act.
“PIA National opposes this legislation because it cuts the Write Your Own (WYO) reimbursement rate paid to insurance companies that participate in the National Flood Insurance Program (NFIP) by 3 percentage points,” said PIA National Vice President of Government Relations Jon Gentile in a statement.
“Let us be clear: as some carriers have stated, this reduction to the WYO reimbursement rate will be passed on to independent insurance agents through abrupt cuts to their commissions. Such cuts will force agents who currently sell flood insurance to leave the program, because it will become prohibitively expensive for agents to sell flood insurance, and it will discourage agents from entering the NFIP policy market. This will ultimately hurt consumers, just as cutting the agent out of the Affordable Care Act hurt consumers in their purchase of health insurance,” Gentile said.
PIA is continuing to urge members of Congress to vote no on any cut to the WYO rate that does not include a strong and robust protection for agent compensation. A vote is expected on the House floor on Thursday, Nov. 9.