Posted on 26 Jul 2010
A bill by Rep. Gene Taylor (D-Miss.) the Multiple Peril Insurance Act of 2009 (H.R. 1264), was pulled from the House floor on July 22 just before a scheduled vote. The bill would require the National Flood Insurance Program (NFIP) to offer optional wind coverage along with flood policies.
"We are encouraged that the House leadership pulled H.R. 1264 from the floor and we are optimistic that opposition to this bill will continue to grow,” said PIA National Director of Federal Affairs Mike Becker. “This legislation may be well-intentioned, but it is counter-productive. A federal government takeover of wind insurance is unjustified and unwarranted. As House members examine H.R. 1264 they are realizing that it is not a good idea and support for it is eroding."
PIA opposed H.R. 1264, sending a letter to all House members urging them to vote “no.”
“H.R. 1264 will add a peril to the program that does not belong there because coverage for wind damage is available in the private market and through state wind pools,” the PIA letter stated. “While Representative Taylor’s bill is well intentioned, adding this to the NFIP would place undue burdens on the program and would be another example of the federal government taking control of an insurance product, all while undermining the private market. The current system assures a robust insurance marketplace with capacity to meet the needs of consumers.”