A bill to ensure that Write Your Own companies can sell private flood insurance products that compete with National Flood Insurance Program products.
Summary
SB 2053 would amend the National Flood Insurance Act of 1968 to bar the Federal Emergency Management Agency from using non-compete restrictions in its arrangements with “Write Your Own” (WYO) insurance companies. Under current law, WYO insurers participate in the National Flood Insurance Program by selling and servicing flood policies on FEMA’s behalf. This bill would prohibit FEMA from conditioning participation in the WYO program, or related use of insurer, agent, broker, or claims-adjustment services, on a promise not to sell private flood insurance.
The bill also would prevent FEMA from including such a restriction in any future WYO agreements. In practical terms, it is intended to let participating insurers, agents, brokers, and adjustment organizations offer private flood insurance products alongside NFIP coverage, increasing competition with the federal flood insurance program.
Impact
The bill would amend Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4081) by adding a new subsection that limits FEMA’s contracting authority. It would not directly rewrite state insurance codes, but it would affect the federal rules governing insurers that participate in the NFIP’s Write Your Own program. The main parties affected would be FEMA, WYO insurers, insurance agents and brokers, claims adjusters, and consumers seeking flood coverage, especially in markets where private flood insurance competes with NFIP policies.
Sentiment
There is no recorded committee transcript or vote history in the provided material, so no formal legislative debate or roll-call sentiment is available. Based on the bill text and caption, the measure appears to be framed positively as a competition and consumer-choice bill, with an emphasis on allowing private insurers to compete more directly with the federal flood insurance program. The introduction by Senator Scott suggests support for expanding private-market participation in flood coverage.
Contention
The likely point of contention is whether FEMA should be allowed to require WYO participants to avoid selling private flood insurance as a condition of participating in the NFIP. Supporters would view the bill as removing an anti-competitive barrier and expanding consumer choice, while opponents may worry that it could weaken the NFIP, create conflicts of interest for participating insurers, or shift business away from the federal program. Because no committee discussion is provided, the specific positions of members or stakeholders are not documented here.
To amend the National Flood Insurance Act of 1968 to allow for the consideration of private flood insurance for the purposes of applying continuous coverage requirements, and for other purposes.