This updates our July 23, 2010 posting.

Rep. Gene Taylor’s (D.-Miss.) Multiple Peril Insurance Act (H.R. 1264) failed to reach a floor vote prior to U.S. House of Representatives’ month-long recess that began this week.  H.R. 1264 would expand the National Flood Insurance Program (“NFIP”) to cover windstorm insurance.  The measure will not be picked up again until the House reconvenes in September.

Meanwhile, Sen. Roger Wicker (R.-Miss.) introduced the Coordination of Wind and Flood Perils Act of 2010 (S. 3672) to the U.S. Senate on July 29, 2010, which would place the burden of flood and wind loss allocations on insurers and the NFIP.  Under S. 3672, if there is a dispute regarding whether a claim is wind or water, the policyholder would immediately receive the full value of the claim, half from the insurer and half from the NFIP.  The insurer and NFIP would then proceed to arbitration to settle the dispute should they be unable to agree on the allocation following payment to the policyholder.  S. 3672 has been referred to the Committee on Banking, Housing, and Urban Affairs.

Click here for a copy of S. 3672.

We will continue to follow this issue and provide further updates on InsureReinsure.com.