Bunning-Bereuter-Blumenauer Flood Insurance Reform Act
The Bunning-Bereuter-Blumenauer Flood Insurance Reform Act (FIRA) of 2004 (Public Law 108-264) was passed into law by Congress and signed by President George W. Bush in June 30, 2004. The act was sponsored by Sen. Jim Bunning, Rep. Doug Bereuter and Rep. Earl Blumenauer. FIRA reformed the National Flood Insurance Program of 1968 to reduce the costs of insuring properties that suffer from repeated flood losses and consequent repetitive flood insurance claim pay outs. FIRA reauthorized the National Flood Insurance Program beginning June 30, 2004 through September 30, 2008.
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Supplemental Forms
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FIRA provided for the development of various types of forms to gather a minimum amount of information from policy holders. Information requested by the forms included the coverage that was purchased, any exclusions that apply and how lost items and damages are valued. An additional supplemental form on which policy holders indicated the number and dollar amount of claims that have been filed on a policy.
Acknowledgement Form
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FIRA also required the development of an Acknowledgement Form to indicate that the insured has receive a copy of their flood insurance policy and any supplemental forms. The form also indicated that the contents of a property are not covered by the flood insurance policy and that supplemental insurance may be necessary. The act required that the insured sign a copy of the acknowledgement form when purchasing a policy.
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Claims Handbook
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Another requirement of FIRA was the development of a claims handbook. According to the act, the handbook must included instructions on the proper way to file a claim and supplemental claims while in the program. The handbook also must include detailed information for appealing claim decisions and loss estimates.
Training and Education Requirements
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According to FIRA, the Federal Emergency Management Administration (FEMA), which oversaw the implementation of the act, was required to work with insurance companies and insurance regulators to develop minimum requirements for agents selling flood policies. The act dictated that these requirements be developed for an agent's initial training as well as for continuing education.
Pilot Program
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FIRA also instigated the creation of a five-year pilot program to reduce the amount of losses from repeated flood claims. The program provided funds to state and local governments to help reduce these losses. Some of the techniques used were to elevate, relocate, demolish or rebuild and flood proof various properties. State and local governments were required to match 25 percent of federal funds.
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