BIG “I” PLEASED WITH PROGRESS ON TERRORISM, FLOOD BILLS
House committee to review terrorism insurance, flood reform legislation Wednesday
WASHINGTON, D.C., Nov. 14, 2005—The Independent Insurance Agents & Brokers of America (the Big “I”) is pleased that the House Financial Services Committee is moving ahead on legislation for a federal terrorism backstop and reform of the National Flood Insurance Program (NFIP).
The committee is scheduled to hold a markup Wednesday for the Terrorism Risk Insurance Revision Act and the Flood Insurance Reform and Modernization Act.
The terrorism bill would help insure against catastrophic terrorism losses in place of the Terrorism Risk Insurance Act (TRIA), which expires Dec. 31. Terrorism insurance legislation is expected in the Senate as well. The House bill has been spearheaded by Financial Services Committee Chairman Mike Oxley (R-Ohio) and Subcommittee Chairman Richard Baker (R-La.).
“We are very glad that Chairman Oxley and Chairman Baker clearly recognize the need for a terrorism backstop,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “We thank them and their colleagues for their diligent work in bringing a bill before the committee and strongly support their efforts. We are hopeful that both houses of Congress will be able to agree on a bill before TRIA expires Dec. 31st.”
The Big “I” has consistently supported the continuation of the current terrorism insurance backstop or a modified one, and it has noted in testimony before Congress that action is needed as soon as possible, since businesses and insurers are starting to make decisions that impact operations beyond the expiration of TRIA.
The flood bill is expected to begin the process of enacting much-needed reforms to the NFIP. The Big “I” last week released a comprehensive package of 22 recommendations to modernize coverage, simplify processing and claims and expedite enforcement, among other needed changes. Chairmen Oxley and Baker, and Rep. Bob Ney (R-Ohio), have led the way on this bill.
“The NFIP needs reforms in order to give consumers better, more consistent coverage and to more effectively protect all policyholders,” says Symington. “We thank Chairman Oxley, Congressman Ney and Chairman Baker for putting this proposal forward, and we look forward to working with Congress to bring about comprehensive flood reform legislation.”
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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