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HIGHLIGHTSTHEBIGGERT-WATERSFLOODINSURANCEREFORMACTTITLEIIOFH.R.4348SURFACETRANSPORTATIONExTENSIONACTOF2012TitleIIprovidesfora0veyearreauthorizationoftheNationalFloodInsuranceProgramNFIPwhichhasnothadalong-termreauthorizationsince2004.TheauthorizationoftheNFIPissettoexpireonJuly312012.Alongtermreauthorizationhasbeenthe1priorityforeverymajorstakeholdergroupinvolvedintheprocessfromlocalcommunitiestoinsuranceproviderstogoodgovernmentorganizations.SinceSeptember2008theNFIPhasbeenextended17timesandtheprogramhaslapsedfourtimesduringthatsametimeperiodcreatingneedlessuncertaintyintheresidentialandcommercialrealestatesectorsincommunitiesacrossthecountry.TitleIIcontainsaseriesoffundamentalreformstotheNFIPthattheCongressionalBudgetOf0ceCBOhasestimatedwillgeneratea2.7billionincreaseinnetincometotheprogramoverthenext10years.TitleIIx13combinedwiththereformsregardingendingNFIPsubsidiesforsecondandvacationhomesenactedinMayP.L.112-123x13endsthedecades-oldsubsidiesforabout355000policyholderswhichreducestheprogramx19sneedtoborrowadditionalfundsfromtheTreasury.AtthesametimeTitleIIprovidesgreaterprotectionsforhomeownerswhobuy1oodinsurancethroughtheNFIP.Toreducethex1cstickershockx1dnewpurchasersmightfaceTitleIIgivesNFIPpolicyholderstheexibilitytopayininstallmentsinsteadofonelumpsum.TitleIIphasesinthecostoffullactuarialinsuranceratesfornewlymappedpropertiesstartingat20percentintheir9rstyearandincreasingby20percenteachyearthereafter.TitleIIallowsforcommunitiesmakingadequateprogressintheconstructionoftheiroodprotectionsystemstoqualifyforlowestpossiblechargeableriskpremiumsforupto9veyearsmeaningthattheratestheypayduringconstructionwillbesetattheleveltheywouldbepayingoncetheirdamsandleveeprojectswerecomplete.Certaincommunitiesclosetoachievingthatadequateprogressstandardmayqualifyfortwoadditionalyearsofthelowestpossiblerates.ToaddressconcernsaboutthemappingprocessTitleIIreinstatestheTechnicalMappingAdvisoryCounciltobringintheexpertiseandperspectivesofotherstakeholdersintheFederalEmergencyManagementAgencyx19sFEMAx19sprocessforsettingnewmappingstandards.TheCouncilwillincludefederalstatelocalandindustryexpertstohelpFEMAreviewoodhazardriskmappingstandardsandproposenewmappingstandardstoFEMA.AsFEMAadoptsthoserecommendationslocalcommunitiesmayrequesttoberemappedbasedonthosenewstandards.TitleIIalsocontainsanemphasisonencouraginggreaterprivatesectorparticipationinproviding1oodinsurancecoverage.Currentlyprivatesectoroodinsuranceisnotgenerallyavailableorobtainableformany.TitleIIreemphasizesFEMAx19sabilitytogetprivatereinsurancetobacktheprograminsteadofrelyinguponborrowingfromtheTreasury.TitleIIalsorequireslenderstoacceptnon-NFIPbackedoodinsurancecoverageprovidedbyaprivateentityifthatcoveragemeetsallthesamerequirementsasNFIP-backedoodinsurance.page2APublicationofIndependentInsuranceAgentsofWV