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Wednesday, November 19, 2014

HFSC Hearing on Flood Insurance - Pass HR 4558

ABIA member WNC testified in favor of ABIA- and ABA-supported legislation at the House Financial Services Committee meeting this afternoon. HR 4558 would provide provide a path forward for private flood insurance policies.

Congress has made clear that private flood insurance should be an available alternative to the NFIP. Efforts to provide clarity, such as the passage of Section 100239 of the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012, have become hopelessly bogged down in implementation and have inadvertently acted to reduce private sector involvement rather than promote it.

In his testimony, Jordan Gray from WNC commented on the solution that this legislation would provide:
The solution is simple – give lenders and borrowers the same discretion to evaluate flood insurance as they have to evaluate all other insurance products. H.R. 4558 - The Flood Insurance Market Parity and Modernization Act of 2014 does this.
H.R. 4558, if enacted, would encourage the development of a competitive and sustainable private flood insurance market.