Senate banking committee approves NFIP reform legislation

WASHINGTON—The Senate Banking, Housing and Urban Affairs Committee on Thursday approved a measure to reform the National Flood Insurance Program.

The Flood Insurance Reform and Modernization Act of 2011, which the Senate panel approved on a voice vote, would extend the NFIP by five years beyond its current Sept. 30 expiration date. It also would modernize flood maps and phase in new premium rates that better reflect the risk.

Quick action urged

The National Assn. of Mutual Insurance Cos. urged the full Senate to move quickly to vote on the legislation.

“With just a few weeks remaining before the NFIP's Sept. 30 expiration date, there's no time to lose,” Jimi Grande, senior vp-federal and political affairs in NAMIC's Washington office, said in a statement. “Congress must act swiftly to ensure that the program is maintained and avoid any uncertainty that could affect our economy.”

“Given the inclement weather and severe flooding throughout the country, it is especially critical that this program be reauthorized and extended so that no home or business is without the ability to receive coverage,” Tom Santos, vp-federal affairs at the Washington-based American Insurance Assn., said in a statement.

If the Senate approves the measure, it will have to be reconciled with a NFIP reform bill passed by the House in July.