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NO on H.R. 1264, the Multiple Peril Insurance Act
July 22, 2010
NTU urges all Representatives to vote “NO” on H.R. 1264, the Multiple Peril Insurance Act, which would expand the National Flood Insurance Program (NFIP) by requiring it to offer new windstorm and multiple peril coverage.
We are concerned that this flawed policy would dramatically and unnecessarily increase the potential liabilities of the federal government, undermine private insurance markets, place lives in danger by subsidizing construction in high-risk areas, and stifle innovations to improve insurance capacity. As mentioned in a recent letter to Members alongside our friends at Taxpayers for Common Sense, we simply cannot afford to expand a federal insurance program that owes the government $18 billion when we are already faced with enormous debt.
Congress should instead revisit policies that incentivize construction in areas known to incur wind and flood damages, thereby encouraging responsible land use plans in these risk-prone places. This would help protect against potential losses without placing undue financial burden on American taxpayers.
Roll call votes on H.R. 1264, the Multiple Peril Insurance Act, will be significantly weighted in our annual Rating of Congress.
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