NU Online News Service, Nov. 2, 1:51 p.m.EST

WASHINGTON–The Senate's vote to continue the NationalFlood Insurance Program for only 46 days is drawing criticism froman insurance group.

After extension of the authorization was voted Thursday nightthe National Association of Professional Insurance Agents washighly critical of its short length, saying it imposes uncertaintyon mortgage lenders and homeowners.

"When Congress creates this air of uncertainty, it triggersadditional legal obligations concerning notice to consumers andcurrent NFIP policyholders about the pending lapse," said MikeBecker, PIA national director of government affairs.

"Congress needs to stop playing Russian roulette with thenation's real estate market and consumer confidence by grantingsuch short extensions to the NFIP," he added.

Officials of the National Association of Mutual InsuranceCompanies withheld criticism, saying only that NAMIC hopes Congressuses the time to act on the issue in a positive way.

Senate approval came on a 72-28 vote just hours after the Housevoted passage 247-178. The vehicle for the so-called "continuingresolution" was H.R. 2996, the bill appropriating $32.8 billion forInterior Department/Environment Protection Agency appropriationsfor the new fiscal year.

The six-week funding extension "should allow enough time for theremaining appropriation bills to be completed," said Sen. DianneFeinstein, D-Calif.

Congress has approved just four conference reports of the 12appropriation measures this year. The new fiscal year began Oct. 1,necessitating the stopgap funding until all the appropriationmeasures are approved.

The NFIP's original authorization ran out at the end of lastyear's fiscal year, Sept. 30.

It has been extended several times since then because of thepress of other businesses and because of the political difficultyin reconciling vastly different bills dealing with reauthorizationpassed by the House and Senate.

For example, a House bill to reshape the program adds winddamage coverage, something strongly opposed by the insuranceindustry. The Senate rejected including wind last May; the Houseincluded wind coverage in voting September 2007.

The House bill also contains provisions that would make itharder for flood insurers to put most of the cost of flood claimson the NFIP.

Mr. Becker of PIA cautioned, "While we are heartened that theflood program was not allowed to slip into a technical lapse, theseshort extensions are insufficient to maintain certainty in themarket."

He added, "Congress has a lot on its plate at the moment, andsince lawmakers don't have time to conduct hearings on reforms tothe flood program, the program should be extended for at leastanother six months so that hearings can be held in a sufficientlydeliberative manner."

Jimi Grande, NAMIC senior vice president of federal andpolitical affairs, added, "While there's certainly no shortage ofimportant issues on Congress' plate, we hope lawmakers will work toprotect thousands of homeowners and businesses by ensuring thefinancial stability of the NFIP without intruding on areas likewindstorm coverage that are already being served by the privatemarket."