Bush Reinstates Flood Insurance Program Law
By Steven Brostoff, Washington editor
NU Online News Service, Jan. 14, 1:28 p.m. EST, Washington?President Bush last night signed legislation retroactively reinstating the National Flood Insurance Program as of Jan. 1, 2003.
Joe M. Allbaugh, director of the Federal Emergency Management Agency, which administers the program, said the reauthorization means that insurance companies may now resume processing all flood insurance applications, renewals and requests for increased coverage received during the program's hiatus.
Insurers, Mr. Allbaugh added, can also deposit premiums and assign an effective date to coverage, as if there had been no hiatus.
Finally, he said, the adjustment of any claims that have been put on hold should proceed without further delay.
Carl Parks, senior vice president of government relations with the Des Plaines, Ill.-based National Association of Independent Insurers, praised Congress and the administration for their quick action on reauthorization of the program, which had expired on Dec. 31, 2002.
The retroactive reauthorization, he said, gives homeowners, prospective homebuyers and business owners who must purchase flood insurance the certainty they need.
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