Update: Multiple Peril Insurance Act of 2007 Hits Roadblock

As reported here the House Committee on Financial Services held a hearing on July 17  to discuss Rep. Gene Taylor’s (D-MS) proposal, the Multiple Peril Insurance Act of 2007, which would expand the National Flood Insurance Program to include wind coverage.

At the hearing, Phillip Swagel, Assistant Secretary of the Treasury for Economic Policy testified that the Bush administration opposes the legislation, thus diminishing the chances that this or any similar legislation will be passed anytime soon.  The major reason stated for the administration’s lack of support is that it believes the Act would lead to “costly inefficiencies and retard innovation.”

For full text of Phillip Swagel’s testimony, click here.

For full text of H.R. 920, click here.