Bank Insurance Agency Management
Community Banks and Insurance
Compliance and Risk Management
Wealth Management
Insurance Product Marketing

Thursday, January 30, 2014

Senate Passes Flood Insurance and Producer Licensing Legislation

This afternoon the Senate passed S. 1926, the combined NARAB and flood insurance reform bill, by a bi-partisan vote of 67 to 32.

As we previously reported, there were four key amendments to the bill that would impact the bank-insurance industry:

  1. Hagan amendment: Passed. This amendment limits the duty to establish escrow accounts to first liens. It received overwhelming response and was therefore adopted and made part of the base text. 
  2. Heller/Lee amendment: Defeated. This amendment clarified that any private flood insurance policy accepted by a State shall satisfy the mandatory purchase requirement. It was narrowly defeated by a vote of 49 to 50.
  1. Merkley amendment: Withdrawn prior to vote. This amendment would have prohibit mortgage servicers from receiving compensation for the force-placement of flood policies and prohibit the free sharing of tracking and administration information between an insurer and a servicer.
  2. Coburn amendment: Defeated. This amendment would have provided states an opportunity to opt-out of the National Association of Registered Agents and Brokers (NARAB) provisions. ABIA opposed this measure since having all the states included is the purpose of the bill.