PIA Agents Win Early Victory in Draft NFIP Legislation
PIA is optimistic about four draft bills that were recently released by House Financial Services Committee Chairwoman Maxine Waters (D-CA). This draft package was released in advance of a March 13 hearing on NFIP reauthorization [“Preparing for the Storm: Reauthorization of the National Flood Insurance Program”]. PIA National submitted testimony for the hearing.
“Perhaps most important for independent agents is what PIA National has successfully prevented from being included in the draft package—a cut to the Write-Your-Own (WYO) reimbursement rate for insurers administering the NFIP,” said Jon Gentile, vice president of government relations of PIA National.
A WYO rate cut could force the WYOs to pass that reduction on to agents through their commissions. In turn, that reduction in agent commissions would likely result in an exodus of qualified independent agents from the NFIP, which would devastate the program. PIA National has consistently been the only independent insurance agent association that opposes a WYO cut. –read more--