The legislation also mandates that state insurance regulators, and not federal banking regulators, will be in charge of determining what is “acceptable” private market flood insurance. 

 ”The Big ‘I’  thanks Sens. Heller and Tester and Reps. Ross and Murphy for introducing this important legislation that appropriately grants state insurance regulators the authority to define ‘acceptable’ private market flood insurance in lieu of an NFIP policy,” says Charles Symington, Big “I” senior vice president for external and government affairs. “This language further strengthens the NFIP by increasing the likelihood that private insurers will continue to explore entering the flood insurance market as a complement to the NFIP, which is an important program to millions of consumers across the country.”

This bill also ensures that policyholders will not lose their flood insurance subsidies or their grandfathered status should they decide to move their coverage from the NFIP to a private market policy and one day wish to return to the NFIP. 

“Most importantly for independent insurance agents and their clients, we would like to thank the bill sponsors for including language in the legislation that categorically states that having an active flood insurance policy, whether that be through the NFIP or through the private market, is considered ‘continuous coverage for the mandatory purchase requirement’,” continued Symington. “Without this important language, Big ‘I’ members and consumers would likely have little interest in exploring potential private market options.” 

            

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