Claims News Service, Nov. 15, 2:45 p.m. EST — The Independent Insurance Agents & Brokers of America (the Big “I”) is asking Congress to extend the borrowing authority of the National Flood Insurance Program (NFIP) as quickly as possible.
The Federal Emergency Management Agency (FEMA) distributed a memo to Write-Your-Own companies recently informing them that lines of credit were suspended until further Congressional action regarding an extension of borrowing authority. With claims expected to exceed $23 billion, extended borrowing authority is necessary in order to meet consumer needs.
The initial borrowing limit of $1.5 billion from the U.S. Treasury was extended by Congress in the immediate wake of Hurricanes Katrina and Rita, but even this extension is deemed inadequate to meet the anticipated claims.
More information is available at www.independentagent.com.
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