An historic component of the bill is a provision that, for the first time since the program was launched in the 1950s, the door is open for the private market to play a strong role in insuring against flood, primarily through reinsurance.

The House considered 25 amendments to the legislation.

A key amendment was one supported by the Property Casualty Insurers Association of America (PCI) and the Independent Insurance Agents and Brokers of America (IIABA) that would require the Federal Emergency Management Agency (FEMA) to find Write-Your-Own companies to take over 832,000 flood policies formerly underwritten by State Farm and its 17,000 agents.

The amendment also requires FEMA to reduce the number of flood insurance policies that are directly managed by the FEMA to not more than 10 percent of the total number of flood insurance policies in force, and requires FEMA to refuse future transfers of policies to the NFIP Direct program.

The amendment passed by voice vote.

The House rejected an amendment by Rep. Candace Miller, R-Mich., to terminate the NFIP as of Jan. 1 and allow states to form interstate compacts to provide flood insurance.

Also rejected was an amendment by Miller that would terminate current spending on television and radio advertising used to promote the NFIP in all 50 states.

Another defeated amendment would have directed the Government Accountability Office to study the feasibility of creating a market for a so-called "all perils" insurance policy, that is, one that would cover wind and water, as well as cover other claims, for example, defective wall board. The amendment, proposed by Rep. Bobby Scott, D-Va., failed 230-192.

An effort to remove a provision adding business interruption and cost-of-living expenses from the program was also defeated.

The House added a provision requiring the NFIP to create a reserve fund that would be used to handle catastrophic losses. The amendment, sponsored by Rep. Lynn Westmoreland, R-Ga., was approved, 241-183.

Regarding privatization efforts, FEMA is explicitly authorized under the measure to "carry out initiatives to determine the capacity of private insurers, reinsurers, and financial markets to assume a portion the flood risk exposure in the United States."

The legislation also directs FEMA to assess the capacity of the private reinsurance market by seeking proposals to assume a portion of the program's risk, and to submit a report on such assessment within six months of enactment.

The bill also gives FEMA the power to tear down and rebuild flood-damaged properties with the caveat that such action "must be cost-effective."