NAMB—The Association of Mortgage Professionals has commended the House Financial Services Committee for taking up HR 2901, the Flood Insurance Market Parity and Modernization Act of 2015.
Sponsored by Reps. Dennis Ross (R-FL) and Patrick E. Murphy (D-FL) HR 2901 affirms and clarifies Congress’ intent in Section 239 of the Biggert-Waters Flood Insurance Reform Act of 2012 to encourage a vibrant private market in flood-insurance products that would compete with the taxpayer-subsidized offerings of the National Flood Insurance Program.
"Whenever private parties are allowed to compete, the consumer wins,” said NAMB President Rocke Andrews, CMC, CRMS. “Allowing private flood insurance companies to compete for flood insurance business will bring more options to the consumer and should drive down costs.”
HR 2901 amends the Flood Disaster Protection Act of 1973 to make technical amendments to requirements for flood insurance under either the federal program or private flood insurance. Private flood insurance shall include, in addition to a policy issued by a company licensed, admitted or otherwise approved by the state (as in current law), any policy issued by an insurance company eligible as a non-admitted insurer to provide flood insurance in the state or jurisdiction where the property to be insured is located. The National Flood Insurance Act of 1968 was amended to direct the Federal Emergency Management Agency (FEMA) to consider any period during which a property was continuously covered by private flood insurance to be a period of continuous insurance coverage.
"The ability for a consumer to choose a service provider is a key component in developing a healthy marketplace,” said NAMB Government Affairs Committee Vice Chair Valerie Saunders, CRMS. “The NAMB Government Affairs Team commends Reps. Ross and Murphy for championing a bill which provides options."
