Editorial Notes
Statutory Notes and Related Subsidiaries
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.
Oversight and Expense Reimbursements of Insurance Companies
Pub. L. 112–141, div. F, title II, § 100224, July 6, 2012, 126 Stat. 936, provided that:
“(a) Submission of Biennial Reports.—
“(1) To the administrator.—
Not later than 20 days after the date of enactment of this Act [
July 6, 2012], each property and casualty insurance company participating in the
Write Your Own program shall submit to the
Administrator any biennial report required by the
Federal Emergency Management Agency to be prepared in the prior 5 years by such company.
“(2) To gao.—
Not later than 10 days after the submission of the biennial reports under paragraph (1), the
Administrator shall submit all such reports to the Comptroller General of the United
States.
“(3) Notice to congress of failure to comply.—
The
Administrator shall notify and report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the
House of Representatives on any property and casualty insurance company participating in the
Write Your Own program that failed to submit its biennial reports as required under paragraph (1).
“(4) Failure to comply.—
A property and casualty insurance company participating in the
Write Your Own program which fails to comply with the reporting requirement under this subsection or the requirement under
section 62.23(j)(1) of title 44, Code of Federal Regulations (relating to biennial audit of the
flood insurance financial statements) shall be subject to a civil penalty in an amount of not more than $1,000 per day for each day that the company remains in noncompliance with either such requirement.
“(b) Methodology To Determine Reimbursed Expenses.—Not later than 180 days after the date of enactment of this Act [July 6, 2012], the Administrator shall develop a methodology for determining the appropriate amounts that property and casualty insurance companies participating in the Write Your Own program should be reimbursed for selling, writing, and servicing flood insurance policies and adjusting flood insurance claims on behalf of the National Flood Insurance Program. The methodology shall be developed using actual expense data for the flood insurance line and can be derived from—
“(1)
flood insurance expense data produced by the property and casualty insurance companies;
“(2)
flood insurance expense data collected by the National Association of Insurance Commissioners; or
“(3)
a combination of the methodologies described in paragraphs (1) and (2).
“(c) Submission of Expense Reports.—
To develop the methodology established under subsection (b), the
Administrator may require each property and casualty insurance company participating in the
Write Your Own program to submit a report to the
Administrator, in a format determined by the
Administrator and within 60 days of the request, that details the expense levels of each such company for selling, writing, and servicing standard
flood insurance policies and adjusting and servicing claims.
“(d) FEMA Rulemaking on Reimbursement of Expenses Under the Write Your Own Program.—
Not later than 12 months after the date of enactment of this Act [
July 6, 2012], the
Administrator shall issue a rule to formulate revised expense reimbursements to property and casualty insurance companies participating in the
Write Your Own program for their expenses (including their operating and administrative expenses for adjustment of claims) in selling, writing, and servicing standard
flood insurance policies, including how such companies shall be reimbursed in both catastrophic and noncatastrophic years. Such reimbursements shall be structured to ensure reimbursements track the actual expenses, including standard business costs and operating expenses, of such companies as closely as practicably possible.
“(e) Report of the Administrator.—Not later than 60 days after the effective date of the final rule issued pursuant to subsection (d), the Administrator shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report containing—
“(1)
the specific rationale and purposes of such rule;
“(2)
the reasons for the adoption of the policies contained in such rule; and
“(3)
the degree to which such rule accurately represents the true operating costs and expenses of property and casualty insurance companies participating in the
Write Your Own program.
“(f) GAO Study and Report on Expenses of Write Your Own Program.—
“(1) Study.—Not later than 180 days after the effective date of the final rule issued pursuant to subsection (d), the Comptroller General of the United States shall—
“(A)
conduct a study on the efficacy, adequacy, and sufficiency of the final rules issued pursuant to subsection (d); and
“(B)
report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the findings of the study conducted under subparagraph (A).
“(2) GAO authority.—In conducting the study and report required under paragraph (1), the Comptroller General—
“(A)
may use any previous findings, studies, or reports that the Comptroller General previously completed on the
Write Your Own program;
“(B) shall determine if—
“(i)
the final rule issued pursuant to subsection (d) allows the
Federal Emergency Management Agency to access adequate information regarding the actual expenses of property and casualty insurance companies participating in the
Write Your Own program; and
“(ii)
the actual reimbursements paid out under the final rule issued pursuant to subsection (d) accurately reflect the expenses reported by property and casualty insurance companies participating in the
Write Your Own program, including the standard business costs and operating expenses of such companies; and
“(C)
shall analyze the effect of the final rule issued pursuant to subsection (d) on the level of participation of property and casualty insurers in the
Write Your Own program.”
[For definitions of terms used in section 100224 of Pub. L. 112–141, set out above, see section 4004 of this title.]