HOUSE PASSAGE OF BAKER FLOOD BILL A STEP FORWARD

H.R. 804 to prevent flood mitigation grants from being counted as income for tax purposes

WASHINGTON, D.C., July 13, 2005—The Independent Insurance Agents & Brokers of America (the Big “I”) applauds the House of Representatives for passing H.R. 804, which would prevent flood mitigation grants from being counted as income for tax purposes. The bill passed under suspension of the rules late Tuesday.

The Big “I” supports the bill, introduced Feb. 15 by Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee Chairman Richard H. Baker (R-La.). If it becomes law, it will ease potentially devastating consequences for those who seek to improve their properties against flood damage. The Big “I” urges the Senate to follow suit and pass the measure.

“This type of tax requirement only adds to the already burdensome scenario repetitive flood victims must face when accepting mitigation grants from the government,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “We are very pleased that Chairman Baker’s bill has passed the House, and we will continue to support it as it moves forward. We thank the chairman for his hard work in getting the bill through the House.”

“Chairman Baker’s bill will remove an unnecessary burden from property owners and significantly improve the National Flood Insurance Program,” says Patrick O’Brien, Big “I” director of federal government affairs. “This is an important bill, and we hope it gets through the Senate, and to the President’s desk, as soon as possible.”

Founded in 1896, IIABA (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, and health—as well as employee benefit plans and retirement products. Web address: www.independentagent.com.

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