The House Financial Services Committee will act on a long-term extension of the federal terrorism risk insurance program in April and a flood insurance reform bill in May, according to the committee chairman, Rep. Barney Frank, D-Mass.Rep. Frank told an insurance company forum he wants to expand the federal backstop to cover losses on group life and workers' compensation insurance that are due to a terrorist attack. He also said he wants a bill that covers nuclear and biological attacks and does not distinguish between international and domestic terrorism. The committee chairman said the bill to reform the National Flood Insurance Program will be similar to the bill the committee passed last year. That bill would penalize lenders that allow flood insurance to lapse on mortgaged properties in flood zones. It would also eliminate subsidized premiums on second homes and commercial properties. Premiums on those properties would be increased 15% a year until they reach the unsubsidized rate. "It will discourage people from building where they shouldn't build, and raises premiums on second homes," Rep. Frank said.
