Cochran, Lott voice support for flood bill

Posted on Wed, Oct. 03, 2007

By MARIA RECIO
SUN HERALD WASHINGTON BUREAU

WASHINGTON -- Mississippi's GOP senators for the first time Tuesday publicly supported a wind provision crafted by Rep. Gene Taylor, D-Bay St. Louis, which is part of a flood insurance reform program approved by the House last week.

Senate Minority Whip Trent Lott and Sen. Thad Cochran kept open the possibility of pursuing another legislative approach, but said they wanted the Senate to move a bill that helped the Gulf Coast.

They spoke separately to the Sun Herald in the Capitol on the day the Senate Committee on Banking, Housing and Urban Affairs held its first hearing on the embattled flood insurance program.

"We have got to come up with a way to have people get an opportunity to have access to coverage," said Lott. "The flood insurance program has problems of its own. It's not actuarially sound; it needs to be reformed.

"But my point to the House and to Gene is, at least he's got a proposal here and the Senate should seriously consider what the House has passed and unless we can come up with something better, I think we need to look at doing this."

"I'm going to be working with the committee to get this whole area addressed," he said.

Lott and Cochran are not banking committee members but Lott, because of his past and present leadership position, has considerable influence with GOP members.

Lott and Taylor lost their homes in Hurricane Katrina and ended up settling lawsuits with their insurer.

Cochran, for his part, said, "I'm not a member of the committee, so I'm not involved in writing of the bill or markup session.

"Gene Taylor is trying to do what he can to help protect the interests of people in hurricane-prone areas. Our state was so terribly damaged, a lot of people who had insurance found it wasn't sufficient to help them rebuild. It's been a big hardship," said Cochran.

"I support whatever he and Sen. Lott think will be helpful to improving growth and rebuilding opportunities in Gulf Coast areas."

The Taylor provision is designed to prevent legal battles between policyholders and insurance companies over which caused hurricane damage - wind, covered by insurance firms, or water, covered by the federal government.

The White House has threatened to veto the House-passed bill because of the wind provision, which it says increases the taxpayers' financial exposure.

At the Senate hearing, most panel members did not address wind coverage, focusing on concerns about the program's $17.5 billion debt to the U.S. Treasury. David Maurstad, assistant administrator and federal insurance administrator for FEMA, said the agency paid $20 billion in Katrina claims.

Ranking member Sen. Richard Shelby, R-Ala., is opposed to adding wind coverage and said he is concerned about the viability of the program.

"The National Flood Insurance Program is now at a crossroads," said Shelby, whose state was also hit by Katrina.

But there was one surprise, vocal supporter of the wind provision - Sen. Chuck Schumer, D-N.Y., who is incensed that private insurers have abandoned coastal Long Island and still object to the federal government assuming coverage. "Gentlemen, ladies - you can't have it both ways," said Schumer.

Referring to the House wind provision, he said, "I believe we should do the same in the Senate, and will work toward that."

What they said

Mississippi senators on wind coverage championed by Rep. Gene Taylor, D-Bay St. Louis, in the Flood Insurance Reform and Modernization Act of 2007, H.R. 3121, approved by the House Thursday:

"We have got to come up with a way to have people get an opportunity to have access to coverage. The flood insurance program has problems of its own. It's not actuarially sound; it needs to be reformed.

"But my point to the House and to Gene is, at least he's got a proposal here and the Senate should seriously consider what the House has passed and unless we can come up with something better, I think we need to look at doing this."

- Senate Minority Whip Trent Lott, R-Miss.

"Gene Taylor is trying to do what he can to help protect the interests of people in hurricane-prone areas. Our state was so terribly damaged, a lot of people who had insurance found it wasn't sufficient to help them rebuild. It's been a big hardship.

I support whatever he and Sen. Lott think will be helpful to improving growth and rebuilding opportunities in Gulf Coast areas."

- Sen. Thad Cochran, R-Miss.




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