NU Online News Service, Feb. 14, 3:04 p.m.EST

Forty-one signatures have been secured on a letter from senatorsto the Senate leadership urging prompt action on legislationreauthorizing the National Flood Insurance Program.

At a press conference at the new Capitol Visitors' Center, Sens.John Tester, D-Mont., and David Vitter, R-La., primary sponsors ofthe letter, said today that they would use the letter to persuadeSen. Harry Reid, D-Nev., majority leader, and Sen. Mitch McConnell,R-Ken., to put the NFIP long-term extension bill on the floor assoon as time permits.

At the same time, Frank Nutter, president and CEO of theReinsurance Association of America, said at the conference that thereinsurance industry was particularly interested in a provisionthat would allow private reinsurers to offload some of the floodprogram's risk.

The provision was included in the House version of the bill,which passed the House floor last July. “The industry has thecapacity and is interested in participating,” he said.

Tester says he believes there is enough support for promptaction to secure the 60 votes needed to ensure that the bill istalked to death on the floor.

He also says that he believes Reid is prepared to move the billto the floor.

Prompt action is needed because the current extension for theprogram ends May 31.

The current program has been operating on extensions—with somebreaks in the program—since Sept. 30, 2008.

As noted at the press conference by Charles Chamness, presidentand CEO of the National Association of Mutual Insurance Companies,the new flood season begins June 1, the day after the programexpires.

Tester acknowledges that support for the bill is not the holdup;the holdup is that Reid is concerned that McConnell will seek touse the must-do bill as an engine to push through controversialprovisions opposed by Senate Democrats.

“Sen. Vitter and I are very well aware that that possibilityexists on all bills, and we will have to work hard to ensure thatthe bill remains as narrow as possible,” Tester explains.

Vitter adds that, “for no good reason the NFIP has been shutdown for 53 days in 2010” because an extension to the program ranout.

As a result, adds Vitter, 1,400 home closings were eithercancelled our postponed.

He was citing data provided by the Property Casualty InsurersAssociation of America. According to PCI officials, in 2010, theNFIP lapsed four times and flood coverage could not be purchased orrenewed for a total of 53 days.

Vitter says Congress “must take the next step and passlegislation providing a long-term reauthorization of the program”before May 31.

Also attending the meeting were officials of the HeartlandInstitute, the National Wildlife Federation, American InsuranceAssociation, Taxpayers for Common Sense, American Rivers, NAMIC andRAA.

Vitter notes that PCI, the National Association of Realtors, theFinancial Services Roundtable and the Independent Insurance Agentsand Brokers of America, were all supporting the effort to have theSenate act promptly on reauthorization legislation.

The Senate bill has no name. The House last July passed H.R.1309, the “Flood Insurance Reform Act of 2011,” by an overwhelmingmajority. The bill, sponsored by Rep. Judy Biggert, R-Ill, would,among other provisions, extend the NFIP until Sept. 30, 2016.

The Senate Banking Committee reported to the floor a similarbill in early September. Floor action has been pending sincethen.