Editorial Notes
Amendments
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director”.
Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director” in concluding provisions.
Subsec. (b)(3). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director”.
Subsec. (b)(4)(B) to (E). Pub. L. 112–141, § 100225(f), redesignated subpars. (C) to (E) as (B) to (D), respectively, and struck out former subpar. (B) which read as follows: “section 1368 (Repetitive Loss Priority Program and Individual Priority Property Program);”.
Subsec. (c). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director” in introductory provisions.
2004—Subsec. (b). Pub. L. 108–264, § 105(a)(1)(B), which directed insertion of “by the community” after “established” in introductory provisions, was executed by making the insertion after “established” the second time appearing to reflect the probable intent of Congress.
Pub. L. 108–264, § 105(a)(1)(A), substituted “implementing measures that are consistent” for “compliance” in introductory provisions.
Subsec. (b)(2). Pub. L. 108–264, § 105(a)(2), substituted “are substantially damaged structures;” for “have flood damage in which the cost of repairs equals or exceeds 50 percent of the value of the structure at the time of the flood event; and”.
Subsec. (b)(3). Pub. L. 108–264, § 105(a)(3), which directed the substitution of “the implementation of such measures; and” for “compliance with land use and control measures.”, was executed by making the substitution for “compliance with the land use and control measures.”, to reflect the probable intent of Congress.
Subsec. (b)(4). Pub. L. 108–264, § 105(a)(4), added par. (4).
1994—Subsecs. (b), (c). Pub. L. 103–325 added subsec. (b) and redesignated former subsec. (b) as (c).
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(2), substituted “Director of the Federal Emergency Management Agency” for “Secretary of Housing and Urban Development”.
Subsec. (b). Pub. L. 98–181, § 451(d)(1), substituted “Director” for “Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Pub. L. 103–325, title V, § 555(b), Sept. 23, 1994, 108 Stat. 2274, provided that:
“The provisions of subsection (a) [amending this section] shall apply only to properties that sustain
flood-related damage after the date of enactment of this Act [
Sept. 23, 1994].”
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.
Flood in Progress Determinations
Pub. L. 112–141, div. F, title II, § 100227, July 6, 2012, 126 Stat. 943, provided that:
“(a) Report.—
“(1) Review.—The Administrator shall review—
“(B)
the processes and procedures for providing public notification that such a
flood event has commenced or is in progress;
“(C)
the processes and procedures regarding the timing of public notification of
flood insurance requirements and availability; and
“(D)
the effects and implications that weather conditions, including rainfall, snowfall, projected snowmelt, existing water levels, and other conditions, have on the determination that a
flood event has commenced or is in progress.
“(2) Report.—Not later than 6 months after the date of enactment of this Act [July 6, 2012], the Administrator shall submit a report to Congress that describes—
“(A)
the results and conclusions of the review under paragraph (1); and
“(B)
any actions taken, or proposed actions to be taken, by the
Administrator to provide for more precise and technical processes and procedures for determining that a
flood event has commenced or is in progress.
“(b) Effective Date of Policies Covering Properties Affected by Flooding of the Missouri River in 2011.—
“(1) Eligible coverage.—
For purposes of this subsection, the term ‘eligible coverage’ means coverage under a new contract for
flood insurance coverage under the
National Flood Insurance Program, or a modification to coverage under an existing
flood insurance contract, for property damaged by the flooding of the Missouri River that commenced on
June 1, 2011, that was purchased or made during the period beginning
May 1, 2011, and ending
June 6, 2011.
“(2) Effective dates.—Notwithstanding section 1306(c) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), or any other provision of law, any eligible coverage shall—
“(A)
be deemed to take effect on the date that is 30 days after the date on which all obligations for the eligible coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed; and
“(B)
cover damage to property occurring after the effective date described in subparagraph (A) that resulted from the flooding of the Missouri River that commenced on June 1, 2011, if the property did not suffer damage or loss as a result of such flooding before the effective date described in subparagraph (A).
“(c) Timely Notification.—
Not later than 90 days after the date on which the
Administrator submits the report required under subsection (a)(2), the
Administrator shall, taking into consideration the results of the review under subsection (a)(1)(B), develop procedures for providing timely notification, to the extent practicable, to policyholders who have purchased
flood insurance coverage under the
National Flood Insurance Program within 30 days of a determination of a
flood in progress and who may be affected by the
flood of the determination and how the determination may affect their coverage.”
[For definitions of terms used in section 100227 of Pub. L. 112–141, set out above, see section 4004 of this title.]
Congressional Findings
Pub. L. 108–264, § 2, June 30, 2004, 118 Stat. 712, provided that:
“The Congress finds that—
“(1) the national flood insurance program—
“(A)
identifies the
flood risk;
“(B)
provides
flood risk information to the public;
“(C)
encourages
State and local governments to make appropriate land use adjustments to constrict the development of land which is exposed to
flood damage and minimize damage caused by
flood losses; and
“(D)
makes
flood insurance available on a nationwide basis that would otherwise not be available, to accelerate recovery from
floods, mitigate future losses, save lives, and reduce the personal and national costs of
flood disasters;
“(3)
approximately 48,000 properties currently insured under the program have experienced, within a 10-year period, 2 or more
flood losses where each such loss exceeds the amount $1,000;
“(4)
approximately 10,000 of these repetitive-loss properties have experienced either 2 or 3 losses that cumulatively exceed building value or 4 or more losses, each exceeding $1,000;
“(6)
repetitive-loss properties comprise approximately 1 percent of currently insured properties but are expected to account for 25 to 30 percent of claims losses;
“(7)
the vast majority of repetitive-loss properties were built before local
community implementation of floodplain management standards under the program and thus are eligible for subsidized
flood insurance;
“(8)
while some property owners take advantage of the program allowing subsidized
flood insurance without requiring mitigation action, others are trapped in a vicious cycle of suffering flooding, then repairing
flood damage, then suffering flooding, without the means to mitigate losses or move out of harm’s way;
“(9)
mitigation of repetitive-loss properties through buyouts, elevations, relocations, or
flood-proofing will produce savings for policyholders under the program and for Federal taxpayers through reduced
flood insurance losses and reduced Federal disaster assistance;
“(10)
a strategy of making mitigation offers aimed at high-priority repetitive-loss properties and shifting more of the burden of recovery costs to property owners who choose to remain vulnerable to repetitive
flood damage can encourage property owners to take appropriate actions that reduce loss of life and property damage and benefit the financial soundness of the program;
“(11)
the method for addressing repetitive-loss properties should be flexible enough to take into consideration legitimate circumstances that may prevent an owner from taking a mitigation action; and
“(12)
focusing the mitigation and buy-out of repetitive loss properties upon communities and property owners that choose to voluntarily participate in a mitigation and buy-out program will maximize the benefits of such a program, while minimizing any adverse impact on communities and property owners.”
Miscellaneous Flood Insurance Provisions
Pub. L. 108–264, title II, June 30, 2004, 118 Stat. 725, as amended by Pub. L. 109–295, title VI, § 612(c), Oct. 4, 2006, 120 Stat. 1410, provided that:
“SEC. 201. DEFINITIONS.“In this title, the following definitions shall apply:
“(1) Director.—
The term ‘Director’ means the
Administrator of the
Federal Emergency Management Agency.
“SEC. 202. SUPPLEMENTAL FORMS.
“(a) In General.—Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall develop supplemental forms to be issued in conjunction with the issuance of a flood insurance policy that set forth, in simple terms—
“(1)
the exact coverages being purchased by a policyholder;
“(2)
any exclusions from coverage that apply to the coverages purchased;
“(3)
an explanation, including illustrations, of how lost items and damages will be valued under the policy at the time of loss;
“(4)
the number and dollar value of claims filed under a
flood insurance policy over the life of the property, and the effect, under the
National Flood Insurance Act of 1968 (
42 U.S.C. 4001 et seq.), of the filing of any further claims under a
flood insurance policy with respect to that property; and
“(5)
any other information that the Director determines will be helpful to policyholders in understanding
flood insurance coverage.
“(b) Distribution.—The forms developed under subsection (a) shall be given to—
“(1)
all holders of a
flood insurance policy at the time of purchase and renewal; and
“(2)
insurance companies and agents that are authorized to sell
flood insurance policies.
“SEC. 203. ACKNOWLEDGEMENT FORM.
“(a) In General.—Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall develop an acknowledgement form to be signed by the purchaser of a flood insurance policy that contains—
“(1)
an acknowledgement that the purchaser has received a copy of the standard
flood insurance policy, and any forms developed under section 202; and
“(2)
an acknowledgement that the purchaser has been told that the contents of a property or dwelling are not covered under the terms of the standard
flood insurance policy, and that the policyholder has the option to purchase additional coverage for such contents.
“(b) Distribution.—
Copies of an acknowledgement form executed under subsection (a) shall be made available to the purchaser and the Director.
“SEC. 204. FLOOD INSURANCE CLAIMS HANDBOOK.
“(a) In General.—Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall develop a flood insurance claims handbook that contains—
“(1)
a description of the procedures to be followed to file a claim under the Program, including how to pursue a claim to completion;
“(2)
how to file supplementary claims, proof of loss, and any other information relating to the filing of claims under the Program; and
“(3)
detailed information regarding the appeals process established under section 205.
“(b) Distribution.—The handbook developed under subsection (a) shall be made available to—
“(1)
each insurance company and agent authorized to sell
flood insurance policies; and
“(2)
each purchaser, at the time of purchase and renewal, of a
flood insurance policy, and at the time of any
flood loss sustained by such purchaser.
“SEC. 205. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.“Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall, by regulation, establish an appeals process through which holders of a flood insurance policy may appeal the decisions, with respect to claims, proofs of loss, and loss estimates relating to such flood insurance policy, of—
“(1)
any insurance agent or adjuster, or insurance company; or
“(2)
any employee or contractor of the Federal Emergency Management Agency.
“SEC. 206. STUDY AND REPORT ON USE OF COST COMPLIANCE COVERAGE.“Not later than 1 year after the date of enactment of this Act [June 30, 2004], the Administrator of the Federal Emergency Management Agency shall submit to Congress a report that sets forth—
“(2)
any barriers to policyholders using the funds provided by cost of compliance coverage under that
section 1304(b) under a
flood insurance policy, and recommendations to address those barriers; and
“(3)
the steps that the
Federal Emergency Management Agency has taken to ensure that funds paid for cost of compliance coverage under that
section 1304(b) are being used to lessen the burdens on all homeowners and the Program.
“SEC. 207. MINIMUM TRAINING AND EDUCATION REQUIREMENTS.“The Administrator of the Federal Emergency Management Agency shall, in cooperation with the insurance industry, State insurance regulators, and other interested parties—
“(1)
establish minimum training and education requirements for all insurance agents who sell
flood insurance policies; and
“(2)
not later than 6 months after the date of enactment of this Act [June 30, 2004], publish these requirements in the Federal Register, and inform insurance companies and agents of the requirements.
“SEC. 208. GAO STUDY AND REPORT.
“(a) Study.—The Comptroller General of the United States shall conduct a study of—
“(1)
the adequacy of the scope of coverage provided under
flood insurance policies in meeting the intended goal of
Congress that
flood victims be restored to their pre
-flood conditions, and any recommendations to ensure that goal is being met;
“(2)
the adequacy of payments to
flood victims under
flood insurance policies; and
“(3)
the practices of the
Federal Emergency Management Agency and insurance adjusters in estimating losses incurred during a
flood, and how such practices affect the adequacy of payments to
flood victims.
“(b) Report.—
Not later than 1 year after the date of enactment of this Act [June 30, 2004], the Comptroller General shall submit to Congress a report regarding the results of the study under subsection (a).
“SEC. 209. PROSPECTIVE PAYMENT OF FLOOD INSURANCE PREMIUMS.
“SEC. 210. REPORT ON CHANGES TO FEE SCHEDULE OR FEE PAYMENT ARRANGEMENTS.“Not later than 3 months after the date of enactment of this Act [June 30, 2004], the Director shall submit a report on any changes or modifications made to the fee schedule or fee payment arrangements between the Federal Emergency Management Agency and insurance adjusters who provide services with respect to flood insurance policies to—
“(1)
the Committee on Banking, Housing, and Urban Affairs of the Senate; and
“(2)
the Committee on Financial Services of the House of Representatives.”
Flood Insurance Interagency Task Force
Section 561 of Pub. L. 103–325 provided that:
“(a) Establishment.—
There is hereby established an interagency task force to be known as the
Flood Insurance Task Force (in this section referred to as the ‘Task Force’).
“(b) Membership.—
“(1) In general.—The Task Force shall be composed of 10 members, who shall be the designees of—
“(B)
the Federal Housing Commissioner;
“(C)
the Secretary of Veterans Affairs;
“(F)
the Chairman of the Board of Directors of the Farm Credit Administration;
“(G)
a designee of the Financial Institutions Examination Council;
“(H)
the Director of the Office of Federal Housing Enterprise Oversight;
“(I)
the chairman of the Board of Directors of the Federal Home Loan Mortgage Corporation; and
“(J)
the chairman of the Board of Directors of the Federal National Mortgage Association.
“(2) Qualifications.—
Members of the Task Force shall be designated for membership on the Task Force by reason of demonstrated knowledge and competence regarding the
national flood insurance program.
“(c) Duties.—The Task Force shall carry out the following duties:
“(1) Recommendations of standardized enforcement procedures.—
Make recommendations to the head of each
Federal agency and enterprise referred to under subsection (b)(1) regarding establishment or adoption of standardized enforcement procedures among such agencies and corporations responsible for enforcing compliance with the requirements under the
national flood insurance program to ensure fullest possible compliance with such requirements.
“(2) Study of compliance assistance.—
Conduct a study of the extent to which Federal agencies and the secondary mortgage market can provide assistance in ensuring compliance with the requirements under the
national flood insurance program and submit to the
Congress a report describing the study and any conclusions.
“(3) Study of compliance model.—
Conduct a study of the extent to which existing programs of Federal agencies and corporations for compliance with the requirements under the
national flood insurance program can serve as a model for other Federal agencies responsible for enforcing compliance, and submit to the
Congress a report describing the study and any conclusions.
“(4) Recommendations for enforcement and compliance procedures.—
Develop recommendations regarding enforcement and compliance procedures, based on the studies and findings of the Task Force, and publish such recommendations.
“(5) Study of determination fees.—Conduct a study of—
“(B)
whether the fees charged pursuant to such section by
lenders and
servicers are greater than the amounts paid by such
lenders and
servicers to
persons actually conducting such determinations and the extent to which the fees exceed such amounts.
“(d) Noncompensation.—
Members of the Task Force shall receive no additional pay by reason of their service on the Task Force.
“(e) Chairperson.—
The members of the Task Force shall elect one member as chairperson of the Task Force.
“(f) Meetings and Action.—
The Task Force shall meet at the call of the chairman or a majority of the members of the Task Force and may take action by a vote of the majority of the members. The Federal Insurance
Administrator shall coordinate and call the initial meeting of the Task Force.
“(g) Officers.—
The chairperson of the Task Force may appoint any officers to carry out the duties of the Task Force under subsection (c).
“(h) Staff of Federal Agencies.—
Upon request of the chairperson of the Task Force, the head of any of the Federal agencies and entities referred to under subsection (b)(1) may detail, on a nonreimbursable basis, any of the personnel of such agency to the Task Force to assist the Task Force in carrying out its duties under this section.
“(i) Powers.—
In carrying out this section, the Task Force may hold hearings, sit and act at times and places, take testimony, receive evidence and assistance, provide information, and conduct research as the Task Force considers appropriate.
“(j) Termination.—
The Task Force shall terminate upon the expiration of the 24-month period beginning upon the designation of the last member to be designated under subsection (b)(1).”