NFIP reauthorization, reform updates
Following a brief lapse over the weekend, the National Flood Insurance Program (NFIP) is operational … at least through Thursday, Feb. 8.
Congressional renewal of the program is part of a continuing resolution to fund the federal government and caught up in a contentious fight over immigration. Next month’s deadline to reauthorize the NFIP follows four short-term extensions since last fall.
Meanwhile, reform legislation is stalled in the U.S. Senate. As previously reported in Agent Headlines, the U.S. House passed H.R. 2874, the 21st Century Flood Reform Act, in November 2017.
While the legislation includes a much-needed five-year reauthorization of the program, it also includes language that reduces the Write Your Own (WYO) reimbursement rate to administer the program. The proposed three-percentage-point cut of the WYO reimbursement rate undoubtedly will lead to a reduction in agent commissions as carriers seek to reduce costs.