[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3111 Reported in House (RH)]
<DOC>
Union Calendar No. 209
116th CONGRESS
1st Session
H. R. 3111
[Report No. 116-261]
To make administrative reforms to the National Flood Insurance Program
to increase fairness and accuracy and protect the taxpayer from program
fraud and abuse, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 5, 2019
Ms. Velazquez introduced the following bill; which was referred to the
Committee on Financial Services
October 28, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on June 5,
2019]
_______________________________________________________________________
A BILL
To make administrative reforms to the National Flood Insurance Program
to increase fairness and accuracy and protect the taxpayer from program
fraud and abuse, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National Flood
Insurance Program Administrative Reform Act of 2019''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Pilot program for properties with preexisting conditions.
Sec. 3. Penalties for fraud and false statements in the National Flood
Insurance Program.
Sec. 4. Enhanced policyholder appeals process rights.
Sec. 5. Deadline for approval of claims.
Sec. 6. Litigation process oversight and reform.
Sec. 7. Prohibition on hiring disbarred attorneys.
Sec. 8. Technical assistance reports.
Sec. 9. Improved disclosure requirement for standard flood insurance
policies.
Sec. 10. Reserve Fund amounts.
Sec. 11. Sufficient staffing for Office of Flood Insurance Advocate.
Sec. 12. Federal Flood Insurance Advisory Committee.
Sec. 13. Interagency guidance on compliance.
Sec. 14. GAO study of claims adjustment practices.
Sec. 15. GAO study of flood insurance coverage treatment of earth
movement.
Sec. 16. Definitions.
SEC. 2. PILOT PROGRAM FOR PROPERTIES WITH PREEXISTING CONDITIONS.
Section 1311 of the National Flood Insurance Act of 1968 (42 U.S.C.
4018) is amended by adding at the end the following new subsection:
``(c) Pilot Program for Investigation of Preexisting Structural
Conditions.--
``(1) Voluntary program.--The Administrator shall carry out
a pilot program under this subsection to provide for companies
participating in the Write Your Own program (as such term is
defined in section 1370(a) (42 U.S.C. 4121(a))) to investigate
preexisting structural conditions of insured properties and
potentially insured properties that could result in the denial
of a claim under a policy for flood insurance coverage under
this title in the event of a flood loss to such property.
Participation in the pilot program shall be voluntary on the
part of Write Your Own companies.
``(2) Investigation of properties.--Under the pilot program
under this subsection, a Write Your Own company participating
in the program shall--
``(A) provide in policies for flood insurance
coverage under this title covered by the program that,
upon the request of the policyholder, the company shall
provide for--
``(i) an investigation of the property
covered by such policy, using common methods,
to determine whether preexisting structural
conditions are present that could result in the
denial of a claim under such policy for flood
losses; and
``(ii) if such investigation is not
determinative, an on-site inspection of the
property to determine whether such preexisting
structural conditions are present;
``(B) upon completion of an investigation or
inspection pursuant to subparagraph (A) that determines
that such a preexisting structural condition is present
or absent, submit a report to the policyholder and
Administrator describing the condition; and
``(C) impose a surcharge on each policy described
in subparagraph (A) in such amount that the
Administrator determines is appropriate to cover the
costs of investigations and inspections performed
pursuant to such policies and reimburse Write Your Own
companies participating in the program under this
subsection for such costs.
``(3) Interim report.--Not later than December 31, 2023,
the Administrator shall submit a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate
describing the operation of the pilot program to that date.
``(4) Sunset.--The Administrator may not provide any policy
for flood insurance described in paragraph (2)(A) after
December 31, 2024.
``(5) Final report.--Not later than March 31, 2025, the
Administrator shall submit a final report regarding the pilot
program under this section to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate. The report
shall include any findings and recommendations of the
Administrator regarding the pilot program.''.
SEC. 3. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL FLOOD
INSURANCE PROGRAM.
Part C of chapter II of the National Flood Insurance Act of 1968
(42 U.S.C. 4081 et seq.) is amended by adding at the end the following
new section:
``SEC. 1349. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL
FLOOD INSURANCE PROGRAM.
``(a) Prohibited Acts.--A person shall not knowingly make a false,
fictitious, or fraudulent statement, production, or submission in
connection with the proving or adjusting of a claim for flood insurance
coverage made available under this Act. Such prohibited acts include--
``(1) knowingly forging an engineering report, claims
adjustment report or technical assistance report used to
support a claim determination;
``(2) knowingly making any materially false, fictitious, or
fraudulent statement or representation in an engineering
report, claims adjustment report, or technical assistance
report to support a claim determination that results in a
wrongful denial or substantial payment error of flood insurance
coverage; and
``(3) knowingly submitting a materially false, fictitious,
or fraudulent claim that results in wrongful payment of flood
insurance coverage.
``(b) Definition.--For purposes of this section, the term
`knowingly' means having actual awareness of the prohibitions under
this part and acting deliberately in violation of such prohibitions.
``(c) Administrative Remedy.--Prior to any legal action being taken
related to this section, all administrative remedies shall be
exhausted.
``(d) Rule of Construction.--This section shall not be construed--
``(1) to prevent the Federal Government from bringing
action against a company or individual under applicable
statutes, including the False Claims Act; and
``(2) as creating any action, private right of action, or
remedy not otherwise provided by this title or under Federal
law.
``(e) State Action.--Any person found to have violated subsection
(a) shall be referred to the appropriate and relevant State licensing
agency by the Attorney General.''.
SEC. 4. ENHANCED POLICYHOLDER APPEALS PROCESS RIGHTS.
(a) Establishment.--Part C of chapter II of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the
preceding provisions of this Act, is further amended by adding at the
end the following new section:
``SEC. 1350. APPROVAL OF DECISIONS RELATING TO FLOOD INSURANCE
COVERAGE.
``(a) In General.--The Administrator shall establish an appeals
process to enable holders of a flood insurance policy provided under
this title to appeal decisions, with respect to the disallowance, in
whole or in part, of any claims for losses covered by flood insurance.
Such appeals shall be limited to the claim or portion of the claim
disallowed.
``(b) Appeal Decision.--Upon a decision in an appeal under
subsection (a), the Administrator shall provide the policyholder with a
written appeal decision. The appeal decision shall explain the
Administrator's determination to uphold, modify, or overturn the
decision. The Administrator may direct the Write Your Own company to
take action necessary to resolve the appeal, to include re-inspection,
re-adjustment, or payment, as appropriate.
``(c) Deadline for Appeals Decision.--The Administrator shall issue
an appeals decision pursuant to subsection (b) not later than the
expiration of the 120-day period beginning upon the day on which the
Administrator acknowledges receipt of a request by the policyholder to
pursue an appeal of the initial determination regarding approval,
disapproval, or amount of payment by the Administrator. In cases where
extraordinary circumstances, as established by regulation, are
demonstrated, the 120-day period may be extended by additional
successive periods of 30 days.
``(d) Administrative Remedy.--A policyholder shall exhaust all
administrative remedies, including submission of disputed claims to
appeal under subsection (a), prior to commencing legal action on a
disputed claim.
``(e) Rules of Construction.--This section shall not be construed
as--
``(1) making the Federal Emergency Management Agency or the
Administrator a party to the flood insurance contract; or
``(2) creating any action or remedy not otherwise provided
by this title.
``(f) Policyholder Litigation.--This section shall not be construed
to prevent a policyholder from bringing legal action against the
Federal Emergency Management Agency or a Write Your Own company
following the exhaustion of all administrative remedies and pursuant to
applicable statute.''.
(b) Maintenance of Litigation Rights.--Section 1341 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4072) is amended by adding after
the period at the end the following: ``For purposes of this section,
the time from which the Administrator has acknowledged receipt of a
request by the policyholder to pursue an appeal of the initial
determination regarding approval, disapproval, or amount of payment by
the Administrator until the Administrator mails a final determination
of such appeal shall not be considered towards the one year statute of
limitation under this Act. However, this section shall not be construed
as creating any action or remedy not otherwise provided by this
title.''.
(c) Repeal.--Section 205 of the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is hereby repealed.
SEC. 5. DEADLINE FOR APPROVAL OF CLAIMS.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019) is amended--
(1) in subsection (a), by striking ``The Administrator''
and inserting ``Subject to other provisions of this section,
the Administrator''; and
(2) by adding at the end the following new subsection:
``(d) Deadline for Approval of Claims.--
``(1) In general.--The Administrator shall provide that, in
the case of any claim for damage to or loss of property under
flood insurance coverage made available under this title, an
initial determination regarding approval of a claim for payment
or disapproval of the claim be made, and notification of such
determination be provided to the insured making such claim, not
later than the expiration of the 120-day period (as such period
may be extended pursuant to paragraph (2)) beginning upon the
day on which the policyholder submits a signed proof of loss
detailing the damage and amount of the loss. Payment of
approved claims shall be made as soon as possible after such
approval.
``(2) Extension of deadline.--The Administrator shall--
``(A) provide that the period referred to in
paragraph (1) may be extended by additional successive
periods of 30 days in cases where extraordinary
circumstances are demonstrated; and
``(B) establish, by regulation, criteria for
demonstrating such extraordinary circumstances.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply to any claim under flood insurance coverage made available under
the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.)
pending on the date of the enactment of this Act and any claims made
after such date of enactment.
SEC. 6. LITIGATION PROCESS OVERSIGHT AND REFORM.
(a) In General.--Part C of chapter II of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the
preceding provisions of this Act, is further amended by adding at the
end the following new section:
``SEC. 1351. OVERSIGHT OF LITIGATION.
``(a) Oversight.--The Administrator shall monitor and oversee
litigation conducted by Write Your Own companies arising under
contracts for flood insurance sold pursuant to this title, to ensure
that--
``(1) litigation expenses are reasonable, appropriate, and
cost-effective; and
``(2) Write Your Own companies comply with guidance and
procedures established by the Administrator regarding the
conduct of litigation.
``(b) Denial of Reimbursement for Expenses.--The Administrator may
deny reimbursement for litigation expenses that are determined to be
unreasonable, excessive, contrary to guidance issued by the
Administrator, or outside the scope of any arrangement entered into
with a Write Your Own company.
``(c) Joint Defense.--
``(1) Authority.--The Administrator and the Write Your Own
companies may enter into, and operate under, a joint defense
agreement for any claim or lawsuit, or multiple claims or
lawsuits, arising under a contract of flood insurance.
``(2) Free flow of information.--Under such joint defense
agreement, there may be the free flow of information between
the Write Your Own companies, the Administrator, the United
States Department of Justice, and legal counsel for the Write
Your Own companies for the purpose of litigation coordination
and to allow the Administrator to perform oversight
responsibility of such litigation.
``(3) Arrangement.--Such joint defense agreement may be
included in the Arrangement between the Administrator and the
Write Your Own companies.
``(4) Regulations.--The Administrator may issue rules or
regulations or provide such formal guidance as the
Administrator considers necessary and appropriate in order to
further such joint defense agreement with the Write Your Own
companies.''.
(b) Implementation.--The Administrator of the Federal Emergency
Management Agency shall initiate compliance with section 1351(c) of the
National Flood Insurance Act of 1968, as added by the amendment made by
subsection (a) of this section, not later than the expiration of the
12-month period beginning on the date of the enactment of this Act.
SEC. 7. PROHIBITION ON HIRING DISBARRED ATTORNEYS.
Part C of chapter II of the National Flood Insurance Act of 1968
(42 U.S.C. 4081 et seq.), as amended by the preceding provisions of
this Act, is further amended by adding at the end the following new
section:
``SEC. 1352. PROHIBITION ON HIRING DISBARRED ATTORNEYS.
``The Administrator may not at any time newly employ in connection
with the flood insurance program under this title any attorney who has
been suspended or disbarred by any court, bar, or Federal or State
agency to which the individual was previously admitted to practice.''.
SEC. 8. TECHNICAL ASSISTANCE REPORTS.
(a) Use.--Section 1312 of the National Flood Insurance Act of 1968
(42 U.S.C. 4019), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new subsection:
``(e) Use of Technical Assistance Reports.--When adjusting claims
for any damage to or loss of property which is covered by flood
insurance made available under this title, the Administrator may rely
upon technical assistance reports, as such term is defined in section
1312A, only if such reports are final and are prepared in compliance
with applicable State and Federal laws regarding professional licensure
and conduct.''.
(b) Disclosure.--The National Flood Insurance Act of 1968 is
amended by inserting after section 1312 (42 U.S.C. 4019) the following
new section:
``SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE REPORTS.
``(a) In General.--Notwithstanding section 552a of title 5, United
States Code, upon request by a policyholder, the Administrator shall
provide a true, complete, and unredacted copy of any technical
assistance report that the Administrator relied upon in adjusting and
paying for any damage to or loss of property insured by the
policyholder and covered by flood insurance made available under this
title. Such disclosures shall be in addition to any other right of
disclosure otherwise made available pursuant such section 552a or any
other provision of law.
``(b) Direct Disclosure by Write Your Own Companies and Direct
Servicing Agents.--A Write Your Own company or direct servicing agent
in possession of a technical assistance report subject to disclosure
under subsection (a) may disclose such technical assistance report
without further review or approval by the Administrator.
``(c) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Policyholder.--The term `policyholder' means a person
or persons shown as an insured on the declarations page of a
policy for flood insurance coverage sold pursuant to this
title.
``(2) Technical assistance report.--The term `technical
assistance report' means a report created for the purpose of
furnishing technical assistance to an insurance claims adjuster
assigned by the National Flood Insurance Program, including by
engineers, surveyors, salvors, architects, and certified public
accounts.''.
SEC. 9. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD INSURANCE
POLICIES.
(a) In General.--Section 100234 of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4013a) is amended by adding at
the end the following new subsections:
``(c) Disclosure of Coverage.--
``(1) Disclosure sheet.--Each policy under the National
Flood Insurance Program shall include a standard disclosure
sheet that is produced by the Administrator that sets forth, in
plain language--
``(A) the definition of the term `flood' for
purposes of coverage under the policy;
``(B) a description of what type of flood forces
are necessary so that losses from an event are covered
under the policy, including overflow of inland or tidal
waves, unusual and rapid accumulation or runoff of a
surface any source, and mudflow;
``(C) a statement acknowledging that a standard
flood insurance policy does not cover basement
improvements, such as finished walls, floors, and
ceilings, or personal property kept in a basement;
``(D) a statement acknowledging a standard flood
insurance policy does not include coverage for personal
property, but such coverage may be purchased, for some
personal property contained in a basement, as well as
personal belongings contained elsewhere in the
dwelling;
``(E) a statement of the other types and
characteristics of losses that are not covered under
the policy;
``(F) a statement that the disclosure sheet
provides general information about the policyholder's
standard flood insurance policy;
``(G) a statement that the standard flood insurance
policy, together with the endorsements and declarations
page, make up the official contract and are controlling
in the event that there is any difference between the
information on the disclosure sheet and the information
in the policy;
``(H) a statement that, if the policyholder has any
questions regarding information in the disclosure sheet
or policy, the policyholder should contact the entity
selling the policy on behalf of the Program, together
with contact information sufficient to allow the
policyholder to contact such entity; and
``(I) any other information that the Administrator
determines will be helpful to policyholder in
understanding flood insurance coverage.
``(2) Acknowledgment sheet.--Each policy application under
the National Flood Insurance Program shall include an
acknowledgment sheet on which the policyholder shall
affirmatively--
``(A) acknowledge that the policyholder received
the disclosure sheet required under paragraph (1);
``(B) accept or decline coverage for personal
property;
``(C) accept or decline other optional coverage
that may be available;
``(D) acknowledge the policyholder's understanding
that the standard flood insurance policy, together with
the endorsements and declarations page, make up the
official contract and are controlling in the event that
there is any difference between the information on the
acknowledgment sheet and the information in the policy;
and
``(E) acknowledge that the policyholder has been
provided and has reviewed a summary, which may be the
policy declarations page, of the total cost, amount and
extent of insurance coverage provided under the policy.
``(d) Rule of Construction.--This section shall not be construed to
void or alter the coverage terms of the underlying standard flood
insurance policy and the corresponding endorsements. In the event that
the customer does not affirmatively acknowledge the requirements under
subsection (c)(2), a Write Your Own company may still issue the policy
on behalf of the National Flood Insurance Program under such terms.''.
(b) Repeals.--Sections 202 and 203 of the Bunning-Bereuter-
Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) are
hereby repealed.
SEC. 10. RESERVE FUND AMOUNTS.
Section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C.
4017) is amended by adding at the end the following new subsection:
``(g) Crediting of Reserve Fund Amounts.--Funds collected pursuant
to section 1310A may be credited to the Fund under this section to be
available for the purpose described in subsection (d)(1).''.
SEC. 11. SUFFICIENT STAFFING FOR OFFICE OF FLOOD INSURANCE ADVOCATE.
(a) In General.--Section 24 of the Homeowner Flood Insurance
Affordability Act of 2014 (42 U.S.C. 4033) is amended by adding at the
end the following new subsection:
``(c) Staff.--The Administrator shall ensure that the Flood
Insurance Advocate has sufficient staff to carry out all of the duties
and responsibilities of the Advocate under this section.''.
(b) Timing.--The Administrator of the Federal Emergency Management
Agency shall take such actions as may be necessary to provide for full
compliance with section 24(c) of the Homeowner Flood Insurance
Affordability Act of 2014, as added by the amendment made by subsection
(a) of this section, not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act.
SEC. 12. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.
Section 1318 of the National Flood Insurance Act of 1968 (42 U.S.C.
4025) is amended to read as follows:
``SEC. 1318. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.
``(a) Establishment.--There is established an advisory committee to
be known as the Federal Flood Insurance Advisory Committee (in this
section referred to as the `Committee').
``(b) Membership.--
``(1) Members.--The Committee shall consist of--
``(A) the Administrator of the Federal Emergency
Management Agency (in this section referred to as the
`Administrator'), or the designee thereof; and
``(B) additional members appointed by the
Administrator or the designee of the Administrator, who
shall include--
``(i) three representatives of Write Your
Own companies;
``(ii) one individual who served in the
past, or is currently serving, as an insurance
regulator of a State, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, the
Commonwealth of the Northern Mariana Islands,
the Virgin Islands, American Samoa, or any
federally-recognized Indian tribe;
``(iii) one representative of the financial
or insurance sectors who is involved in risk
transfers, including reinsurance, resilience
bonds, and other insurance-linked securities;
``(iv) one actuary with demonstrated high-
level knowledge of catastrophic risk insurance;
``(v) two insurance agents or brokers with
demonstrated experience with the sale of flood
insurance under the National Flood Insurance
Program, one of whom shall have demonstrated
expertise in the challenges in insuring low-
income communities;
``(vi) one insurance claims specialist;
``(vii) one representative of a recognized
consumer advocacy organization; and
``(viii) one representative from an
academic institution who has demonstrated
expertise in insurance.
``(2) Qualifications.--In appointing members under
paragraph (1)(C), the Administrator shall, to the maximum
extent practicable, ensure the membership of the Committee has
a balance of members reflecting geographic diversity, including
representation from areas inland or with coastline identified
by the Administrator as at high risk for flooding or as areas
having special flood hazards.
``(c) Duties.--The Administrator shall submit, and the Committee
shall review and make recommendations on, matters related to the
insurance aspects of the National Flood Insurance Program, including
ratemaking, technology to administer insurance, risk assessment,
actuarial practices, claims practices, sales and insurance delivery,
compensation and allowances, the public-private partnership under the
Write Your Own arrangement, general best insurance practices, and any
significant changes proposed to be made regarding the operation of the
National Flood Insurance Program.
``(d) Chairperson.--The members of the Committee shall elect one
member to serve as the chairperson of the Committee (in this section
referred to as the `Chairperson').
``(e) Compensation.--Members of the Committee shall receive no
additional compensation by reason of their service on the Committee.
Members may be reimbursed by the Federal Government for travel
expenses, including per diem in lieu of subsistence, at rates
consistent with rates authorized for employees of Federal agencies
under subchapter 1 of chapter 57 of title 5, United States Code, while
away from home or regular places of business in performance of service
for the Committee.
``(f) Meetings and Actions.--
``(1) In general.--The Committee shall meet not less
frequently than twice each year at the request of the
Chairperson or a majority of its members, and may take action
by a vote of the majority of the members in accordance with the
Committee's charter.
``(2) Initial meeting.--The Administrator, or a person
designated by the Administrator, shall request and coordinate
the initial meeting of the Committee.
``(g) Transparency; FACA.--To the greatest extent possible, the
Committee shall operate in a transparent manner that adheres to the
requirements of the Federal Advisory Committee Act, with the exception
that the Committee shall be permitted to freely communicate both during
and between meetings under paragraph (f) in a confidential manner to
discuss non-public information regarding the operations of the National
Flood Insurance Program and other sensitive and non-public issues. If
such communication occurs, the Committee shall, to the greatest extent
possible, report a summary of such discussions in an appropriate public
manner.
``(h) Staff of FEMA.--Upon the request of the Chairperson, the
Administrator may detail, on a non-
reimbursable basis, personnel of the Federal Emergency
Management Agency to assist the Committee in carrying out its duties.
``(i) Powers.--In carrying out this section, the Committee may hold
hearings, receive evidence and assistance, provide information, and
conduct research, as it considers appropriate.
``(j) Reports to Congress.--The Administrator, on an annual basis,
shall report to the Committee on Financial Services of the House of
Representatives, the Committee on Banking, Housing, and Urban Affairs
of the Senate, and the Office of Management and Budget on--
``(1) the recommendations made by the Committee;
``(2) actions taken by the Federal Emergency Management
Agency to address such recommendations to improve the insurance
aspects of the national flood insurance program; and
``(3) any recommendations made by the Committee that have
been deferred or not acted upon, together with an explanatory
statement.
``(k) Rule of Construction.--This section shall not be construed to
eliminate or alter any requirement on the Administrator associated with
the notification or consultation of specified individuals or groups of
individuals as required elsewhere by statute.''.
SEC. 13. INTERAGENCY GUIDANCE ON COMPLIANCE.
The Federal entities for lending regulation (as such term is
defined in section 3(a) of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4003(a))), in consultation with the Administrator of the
Federal Emergency Management Agency, shall update and reissue the
document entitled ``Interagency Questions and Answers Regarding Flood
Insurance'' not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act and not less
frequently than biennially thereafter.
SEC. 14. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES.
The Comptroller General of the United States shall conduct a study
of the policies and practices for adjustment of claims for losses under
flood insurance coverage made available under the National Flood
Insurance Act, which shall include--
(1) a comparison of such policies and practices with the
policies and practices for adjustment of claims for losses
under other insurance coverage;
(2) an assessment of the quality of the adjustments
conducted and the effects of such policies and practices on
such quality;
(3) identification of any incentives under such policies
and practices that affect the speed with which such adjustments
are conducted; and
(4) identification of the affects of such policies and
practices on insureds submitting such claims for losses.
Not later than the expiration of the 18-month period beginning on the
date of the enactment of this Act, the Comptroller General shall submit
a report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate regarding the findings and conclusions of the
study conducted pursuant to this section.
SEC. 15. GAO STUDY OF FLOOD INSURANCE COVERAGE TREATMENT OF EARTH
MOVEMENT.
The Comptroller General of the United States shall conduct a study
of the treatment, under flood insurance coverage made available under
the National Flood Insurance Act, of earth movement and subsidence,
including earth movement and subsidence caused by flooding, which shall
include--
(1) identification and analysis of the effects of such
treatment on the National Flood Insurance Program and insureds
under the program;
(2) an assessment of the availability and affordability of
coverage in the private insurance market for earth movement and
subsidence caused by flooding;
(3) an assessment of the effects on the National Flood
Insurance Program of covering earth movement and subsidence
caused by flooding; and
(4) a projection of the increased premiums that would be
required to make coverage for earth movement losses actuarially
sound and not fiscally detrimental to the continuation of the
National Flood Insurance Program.
Not later than the expiration of the 18-month period beginning on the
date of the enactment of this Act, the Comptroller General shall submit
a report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate regarding the findings and conclusions of the
study conducted pursuant to this section.
SEC. 16. DEFINITIONS.
(a) National Flood Insurance Act of 1968.--Subsection (a) of
section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C.
4121(a)) is amended--
(1) in paragraph (14), by striking ``and'' at the end;
(2) in paragraph (15), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(16) the term `Write Your Own Program' means the program
under which the Federal Emergency Management Agency enters into
a standard arrangement with private property insurance
companies to sell contracts for flood insurance coverage under
this title under their own business lines of insurance, and to
adjust and pay claims arising under such contracts; and
``(17) the term `Write Your Own company' means a private
property insurance company that participates in the Write Your
Own Program.''.
(b) Biggert-Waters Flood Insurance Reform Act of 2012.--Subsection
(a) of section 100202 of the Biggert-Waters Flood Insurance Reform Act
of 2012 (42 U.S.C. 4004(a)) is amended by striking paragraph (5) and
inserting the following new paragraph:
``(5) Write your own.--The terms `Write Your Own Program'
and `Write Your Own company' have the meanings given such terms
in section 1370(a) of the National Flood Insurance Act of 1968
(42 U.S.C. 4121(a)).''.
Union Calendar No. 209
116th CONGRESS
1st Session
H. R. 3111
[Report No. 116-261]
_______________________________________________________________________
A BILL
To make administrative reforms to the National Flood Insurance Program
to increase fairness and accuracy and protect the taxpayer from program
fraud and abuse, and for other purposes.
_______________________________________________________________________
October 28, 2019
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
National Flood Insurance Program Administrative Reform Act of 2019
#3111 | HR Congress #116
Policy Area: Finance and Financial Sector
Subjects: Administrative law and regulatory proceduresAdministrative remediesAdvisory bodiesCivil actions and liabilityCongressional oversightDepartment of Homeland SecurityDisaster relief and insuranceFederal Emergency Management Agency (FEMA)Floods and storm protectionFraud offenses and financial crimesGovernment information and archivesGovernment studies and investigationsGovernment trust fundsInsurance industry and regulationLand use and conservation
Last Action: Placed on the Union Calendar, Calendar No. 209. (10/28/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text