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The House passed a two-week extension of the National Flood Insurance Program Thursday, as the NCUA and other financial regulators reminded financial institutions that beginning July 1, they must accept private flood insurance policies that meet federal standards.
On Thursday, the House passed the 11th temporary extension for the program whose authorization has expired at the end of 2017. The House passed the bill by unanimous consent; the bill now goes to President Trump who is expected to sign it.
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The extension expires on June 14.
Congress has been attempting to rewrite the flood insurance law for several years; the program runs a huge deficit.
Meanwhile financial institutions will begin implementing the new flood insurance rule.
"Increasing participation by private insurers could transfer more flood risk from policyholders to the private insurance sector, as opposed to transferring the risk to the federal government through the NFIP," the Congressional Research Service said in a recent report.
The NCUA board passed a final rule implementing the requirement in February.
The agency and other financial regulators will hold a webinar on the new requirement on June 18.
Under the new rule, credit unions will be required to accept policies issued by companies that are approved by the state where the property is located or is recognized or not disapproved under other standards.
The policies must provide as broad a coverage as the coverage specified in federal law for the NFIP.
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