Posted On: October 1, 2007, 1:00 pm CDT

Posted By: Sam

Hey Tink, I believe you are counting your chickens before they are hatched. It is anticipated that this bill, as written, will have a very hard time getting approval in the Senate. AND, if it does make it through the Senate, Bush has indicated he will veto any NFIP bill that has a wind peril attached.

The bill as proposed recommends 'actuarially sound rates', which is what carriers tried to do before getting shut down by various regulators. If the premiums is truly based on actuarially sound rates, then it will be almost as costly from the government as through private insurers. Also, what about the gaps in coverage that a wind/water policy will not cover?

The bill as proposed does not allow the NFIP to renew policies or write new coverage as long as there is a deficit or borrowing to pay claims. What happens if there is another Katrina type storm in the first year of such a wind/water plan? The NFIP will have to non-renew all existing policies, and take no new applications. There is not any fix there, is there?

I understand the issues with costly premium & taxes, but as I have said, I should not have to subsidize for that exposure, which I certainly will if there is a wind/water NFIP plan in place.