The Property Casualty Insurers Association of America is urging the new Congress to address relief for the victims of Sandy – and to provide the necessary funding to the National Flood Insurance Program (“NFIP”).
“PCI and its members empathize with all those so hard hit from Hurricane Sandy. We are pleased that the House is planning to take up this important legislation,” said Don Griffin, PCI's vice president for personal lines. “PCI supports the additional funding for the NFIP so insurers can continue to help impacted citizens. This is a necessary step to assist those insurers with NFIP claims who need these funds to help those affected by Sandy put their lives back together. Insurers are ready to help but the NFIP funding is necessary to pay out the flood claims and we do not want to halt the flood claims process for consumers.”
Without additional borrowing authority, Write-Your-Own (“WYO”) insurers who partner with the NFIP to help administer the NFIP program will be forced to stop paying flood claims, as the funding to pay out the flood claims from these losses comes from the NFIP, not private insurers. The NFIP is expected to hit the borrowing cap next week.
“We do not want a repeat of what happened in late 2005 when FEMA/NFIP ran out of borrowing authority and WYO insurers were forced to stop paying claim payments to policyholders while Congress debated increases,” said Mr. Griffin. “We appreciate Congress focusing on this important issue immediately in the start of the 113 Congressional session.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].