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Legislation to reauthorize the National Flood Insurance Program (NFIP)

As legislation to reauthorize the National Flood Insurance Program (NFIP) starts to move in the House, PIA has taken a strong stand in opposition to cuts in agent commissions and in support of Write Your Own (WYO) carriers. We oppose a cut to the Write-Your-Own (WYO) reimbursement percentage from the current 30.9 percent cap to 25 percent. This reimbursement is used by carriers to pay administrative expenses as well as agent commissions, among other costs. Most WYOs have acknowledged that in order to remain in the program they will likely be forced to pass any cut to the WYO rate will be passed on to agents in the form of commission cuts, as it was in healthcare.   

PIA has participated in some congressional meetings with other groups and we have been dismayed when others have deviated from full support of no cuts for the WYOs by ‘floating out’ the idea of possible cuts. Industry groups have been negotiating behind closed doors on how much to cut the WYO reimbursement percentage. PIA has chosen not to take part in these discussions, as it critical to be firm in full defense of our members’ compensation.  

Late last week, PIA National sent PIA members an Action Alert asking them to contact Congress and tell them not to support any bill that would lead to agent commissions being cut. 

On June 9, PIA National sent this document to Congress highlighting our opposition to the House flood legislative package. Today, PIA National issued this press release.  

PIA will continue to push back against any cut that does not include a specific protection for agent compensation, and has been working on the Senate side to advocate for such a protection to be included as specific language in NFIP renewal legislation.

PIA is looking out for agents, and will continue to do so. Period.

 

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