Barney Frank: “Virtually every piece of legislation we deal with, because this legislation has two parts, one part which will reduce an…”

“Virtually every piece of legislation we deal with, because this legislation has two parts, one part which will reduce an existing liability, that is, there is already out there a flood insurance liability. This bill, unanimously agreed to by all in the committee who worked on it, will reduce that in the flood part. With regard to water, this will raise premiums and restrict placement. With regard to the new part, the wind part, it will create no liability, because as I have said several times, the bill strictly says that premiums will have to be actuarially sound. And CBO has certified that that is accurate. So CBO has certified this will, over time, produce no new liability on wind and save money on water.”