The bill is Title II of H.R. 4348, the Surface Transportation Extension Act of 2012.

Key highlights include allowing the Federal Emergency Management Agency to raise rates a maximum of 20 percent annually, as compared to 10 percent annually under the current program.

It also mandates that owners of second homes, properties with repetitive flood claims and commercial properties will go up 20% over the next five years, raising them to actuarially-adjusted fees. That will be effective July 1.

The bill reiterates FEMA's authority to buy private reinsurance to back the program, which is aimed at reducing FEMA's reliance on Treasury loans to fund the program.

The reforms are projected to generate an additional $2.7 billion in new revenues over 10 years, according to the Congressional Budget Office.

Despite the sigh of relief that long-term certainty has been achieved, insurance industry officials are privately voicing concern about two areas of the bill.

One is removal of a provision that mandated that homeowners who live behind levees and other flood control structures buy flood insurance.

The other is the provision raising rates to market level within four years on second homes and vacation properties.

The concern is that allowing homeowners and businesses situated in areas behind levees to escape paying into the program will reduce revenues, and that those being forced to pay market rates for second homes and vacation properties will decide to buy private insurance.

That will rob the program of needed revenues, and throw off the calculations used by the CBO to project higher revenues through the reforms included in the program, the officials said.

They asked not to be identified because the charged political atmosphere in Washington makes industry officials hesitant to voice concerns for the record.

This article was originally posted at PropertyCasualty360, a sister site of Credit Union Times.