PIA Supports US Senate NFIP Reauthorization Bill
PIA issued a statement on July 20, 2017, expressing appreciation for the work done by Senate Banking, Housing and Urban Affairs Committee Chairman Michael Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) on their bill, the “National Flood Insurance Program Reauthorization Act of 2017” (S. 1571), which is currently before the committee.
The bill provides a long-term reauthorization of the National Flood Insurance Program and has left untouched the Write Your Own (WYO) reimbursement rate for insurers, maintaining agent commissions. “We applaud this first step by Chairman Crapo and Ranking Member Brown to reauthorize this critical program used to protect against floods,” said Jon Gentile, vice president of government relations for PIA National.
Meanwhile, PIA National strongly opposes the House NFIP reauthorization package that passed out of the Financial Services Committee because it arbitrarily cuts the WYO rate, which is used by carriers to pay administrative expenses as well as agent commissions, among other things. Most WYOs have acknowledged that, for them to remain in the program, they will be forced to pass any cut to the WYO rate on to agents in the form of cuts to agent commissions. PIA National will remain opposed to any legislation that cuts the WYO rate without robust protections for agents.