The amendment led the American Insurance Association (AIA) to say it now opposes the bill. The association also cautioned that it is uncertain that the Senate will even consider any NFIP reauthorization bill this year.

Leigh Ann Pusey, AIA president and CEO, said, "Adopting the Taylor amendment would force WYO companies to take a hard look at whether they want to continue participating in the program and could actually result in a reduction in NFIP payouts to policyholders even when they are warranted."

The Property Casualty Insurers Association of America (PCI) said the amendment would require a WYO company to rewrite their insurance contracts to address the concurrent causation issue, "putting those companies at an increased risk of loss."

PCI added, "This would create a competitive disadvantage for those WYO companies who support the NFIP, and threatens to force private insurers out of the WYO market."

Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies, said, "It's extremely disappointing to see, once again, meaningful, needed reform legislation undermined. The original bill contained reforms with broad, bipartisan support that would have started the NFIP on the road back to financial stability.

"Rather than attracting new companies to the NFIP, this amendment will make it more difficult for insurers to write flood coverage and discourage them from participating in the program."

The bill reforms the NFIP by phasing in market rates and phases in actuarial rates for severe repetitive loss properties and those with substantial damage.

An amendment to add wind coverage to the program was defeated in the House.

The bill is silent on dealing with the current NFIP deficit of more than $18 billion.

The bill attempts to end criticism of prior reform efforts that mandated increases in rates based on new mapping. The bill provides premium discounts for five years to assist consumers in newly designated flood hazard areas who are now subject to a new requirement to purchase flood insurance.

The bill also phases in rates for properties that were not previously in the flood plain, and phases out subsidies for properties built prior to 1974.

It increases the coverage limits available for residential and commercial properties, which have not changed since 1994, and includes a provision added at the request of the Independent Insurance Agents and Brokers of America that provides an option to purchase business interruption coverage for an appropriate premium.

It also increases the minimum deductible that more accurately reflects private market deductibles, and allows for premiums to be paid in installments for lower-income property owners.