BIG “I” PLAYS PIVOTAL ROLE IN FLOOD EDUCATION REQUIREMENTS
Association’s efforts rewarded as FEMA works with states and industry to create guidelines
WASHINGTON, D.C., Oct. 20, 2005—Efforts by the Independent Insurance Agents & Brokers of America (the Big “I”) to prevent duplicative, burdensome and overreaching educational requirements within the National Flood Insurance Program (NFIP) have been rewarded.
With the publication of education requirements in the Federal Register by the Federal Emergency Management Agency (FEMA), it is clear that the Association’s concerns have been recognized, as FEMA worked together with the states and the industry to craft common-sense guidelines. The Big “I” played a significant role in shaping the training and education requirements, and its input is reflected in the rules.
The educational requirements will be part of the Flood Insurance Reform Act (FIRA), signed into law June 30, 2004. The Big “I” supported and pushed for FIRA, which reauthorized the NFIP for five years, but had been concerned about the possibility that the new educational rules would be overly broad or possibly redundant, causing fewer agents to sell flood insurance.
Consequently, the Big “I” supported report language instructing FEMA to “work with all interested parties, including insurance companies and agents, as well as state insurance regulators [to establish] training and education requirements and … work to make sure that agents are not burdened with inconsistent state and federal training and education requirements.” The instructions also included a provision that FEMA “work to implement the training requirements through the states which already have continuing education processes in place.”
“This language is very important to independent insurance agents and brokers,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “We worked hard to ensure the final legislation provided a common-sense basis for furthering education on this important topic without creating needless bureaucratic inconsistencies. We are very pleased with FEMA’s implementation of this language as FEMA chose to adopt a route that will enhance agent training and education in an efficient and effective way, which will also be better for consumers.
Main provisions include:
§ FEMA intends to encourage states to both implement minimum flood insurance training standards, as part of its overall licensing requirements, and improve testing and training of agents selling flood policies.
§ FEMA will provide assistance, where necessary, to the states in implementing flood insurance training programs for agents.
§ Using the model act adopted by the National Conference of Insurance Legislators (NCOIL), FEMA will work actively with state insurance departments that do not already have established flood insurance training programs in place.
§ FEMA will provide incentives to insurance agents to pursue flood insurance training, and a system is being designed to give agents who have completed additional training priority in the distribution of leads.
§ The rule also outlines the content that states should include in updating their flood insurance requirements, reflecting Big “I” input.
Patrick O’Brien, Big “I” director of federal government affairs, adds: “FEMA’s relationship with the private sector sets the standard for how a federal government agency should cooperate with the business community to find reasonable, pragmatic solutions to issues. We look forward to continuing this productive working relationship in the months ahead as the agency grapples with the aftermath of Hurricane Katrina.”
Founded in 1896, 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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