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Cliston Brown
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Phone:
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202-639-0497
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cliston.brown@pciaa.net
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Continuation of Flood Program Is Paramount Concern
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WASHINGTON—David A. Sampson, president and CEO of the
Property Casualty Insurers Association of America (PCI), today issued the
following statement in response to Tuesday’s House passage of H.R. 6965, which would
create a short-term extension for the National Flood Insurance Program (NFIP):
“While it would certainly be preferable for Congress
to pass a long-term extension with much-needed reforms, the most
important thing we must do right now is to make sure that the NFIP does not
lapse on Sept. 30th. Expiration of the program could have dire consequences,
not just for policyholders but also for the nation’s economy at large. Every
homeowner with a federally backed mortgage in flood plains must have flood
insurance in order to finance a home purchase. If the program expires,
real-estate transactions in flood-prone areas would come to a halt. Given the
economic challenges we already face, we do not need to compound these issues by
allowing the NFIP to run out.
“We will continue to urge the House and Senate to reach agreement expeditiously
on a long-term extension, which would be the best solution for renewing and
reforming this vital program and restoring its fiscal soundness.”
PCI is composed of more than 1,000 member
companies, representing the broadest cross-section of insurers of any national
trade association. PCI members write over $194 billion in annual premium, 40.1
percent of the nation’s property/casualty insurance. Member companies write 51.3
percent of the U.S. automobile insurance market, 39 percent of the
homeowners market, 32.1 percent of the commercial property and liability
market, and 38.7 percent of the private workers compensation market.
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