Posted on 16 Jul 2010
Ben McKay, senior vice president, federal government relations for the Property Casualty Insurers Association of America (PCI), issued the following statement in response to U.S. House passage of H.R. 5114, the Flood Insurance Reform and Priorities Act of 2010:
"The House has taken the right step forward for homeowners and the American economy by crafting a strong, comprehensive extension of the National Flood Insurance Program. This action helps provide a greater degree of certainty for property owners and a real estate market that was left vulnerable by previous lapses in the government program.
“At the last minute, Rep. Gene Taylor (D-Miss.) succeeded in attaching a concurrent causation amendment to the flood bill that could make private insurers pay for the obligations of the federal government. Ultimately, the language Rep. Taylor added would prove unworkable, and we will work to convince the Senate to remove this troublesome language. But it is never a good idea to throw out three-quarters of a loaf of good bread, and overall, we are pleased that the House has taken a much-needed step toward extending and preserving the NFIP."