The U.S. House of Representatives, after extended debate last week, approved legislation designed to reform the insolvent National Flood Insurance Program by an overwhelming vote of 416-4. However, the final product contained amendments of deep concern to the insurance industry, including one that mandates a government probe into insurance company decisions on whether water damage to homes resulted from covered wind or uncovered flood losses.
The American Insurance Association said after the vote that while it supported the underlying bill, it hopes certain amendments will be revisited before the legislation is enacted. A major concern is a provision calling for an "investigation," rather than a study, of the wind-versus-flood issue.
Dennis Kelly, an AIA representative, also noted AIA's concern about an amendment by Rep. Jo Ann Davis, R-Va., which would extend the proof-of-loss deadline. Another amendment contained a retroactive clause dealing with claims dating from 2003.
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