42 U.S.C. § 4051 — Industry flood insurance pool; require-

Page 6047 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4051 the National Flood Insurance Act of 1968 which com- prises this chapter. Statutory Notes and Related Subsidiaries DEFINITIONS For definitions of terms used in this section, see sec- tion 4005 of this title. SUBCHAPTER II—ORGANIZATION AND AD- MINISTRATION OF FLOOD INSURANCE PROGRAM § 4041. Implementation of program Following such consultation with representa- tives of the insurance industry as may be nec- essary, the Administrator shall implement the flood insurance program authorized under sub- chapter I in accordance with the provisions of part A of this subchapter and, if a determination is made by him under section 4071 of this title, under part B of this subchapter. (Pub. L. 90–448, title XIII, § 1330, Aug. 1, 1968, 82 Stat. 581; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.) Editorial Notes AMENDMENTS 2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for ‘‘Director’’. 1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Sec- retary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see sec- tion 1377 of Pub. L. 90–448, set out as a note under sec- tion 4001 of this title. TRANSFER OF FUNCTIONS For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency 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 li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. PART A—INDUSTRY PROGRAM WITH FEDERAL FINANCIAL ASSISTANCE § 4051. Industry flood insurance pool; require- ments for participation (a) The Administrator is authorized to encour- age and otherwise assist any insurance compa- nies and other insurers which meet the require- ments prescribed under subsection (b) to form, associate, or otherwise join together in a pool— (1) in order to provide the flood insurance coverage authorized under subchapter I; and (2) for the purpose of assuming, including as reinsurance of coverage provided by the flood insurance program, on such terms and condi- tions as may be agreed upon, such financial re- sponsibility as will enable such companies and other insurers, with the Federal financial and other assistance available under this chapter, to assume a reasonable proportion of responsi- bility for the adjustment and payment of claims for losses under the flood insurance program. (b) In order to promote the effective adminis- tration of the flood insurance program under this part, and to assure that the objectives of this chapter are furthered, the Administrator is authorized to prescribe appropriate require- ments for insurance companies and other insur- ers participating in such pool including, but not limited to, minimum requirements for capital or surplus or assets. (Pub. L. 90–448, title XIII, § 1331, Aug. 1, 1968, 82 Stat. 582; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, §§ 100232(d)(1), 100238(b)(1), July 6, 2012, 126 Stat. 954, 958.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(2) and (b), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. AMENDMENTS 2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), sub- stituted ‘‘Administrator’’ for ‘‘Director’’ in introduc- tory provisions. Subsec. (a)(2). Pub. L. 112–141, § 100232(d)(1), inserted ‘‘, including as reinsurance of coverage provided by the flood insurance program’’ before ‘‘, on such terms’’. Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’. 1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see sec- tion 1377 of Pub. L. 90–448, set out as a note under sec- tion 4001 of this title. TRANSFER OF FUNCTIONS For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency 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 li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and Page 6048 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4052 sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. § 4052. Agreements with flood insurance pool (a) Authorization The Administrator is authorized to enter into such agreements with the pool formed or other- wise created under this part as he deems nec- essary to carry out the purposes of this chapter. (b) Terms and conditions Such agreements shall specify— (1) the terms and conditions under which risk capital will be available for the adjust- ment and payment of claims, (2) the terms and conditions under which the pool (and the companies and other insurers participating therein) shall participate in pre- miums received and profits or losses realized or sustained, (3) the maximum amount of profit, estab- lished by the Administrator and set forth in the schedules prescribed under section 4018 of this title, which may be realized by such pool (and the companies and other insurers partici- pating therein), (4) the terms and conditions under which op- erating costs and allowances set forth in the schedules prescribed under section 4018 of this title may be paid, and (5) the terms and conditions under which premium equalization payments under section 4054 of this title will be made and reinsurance claims under section 4055 of this title will be paid. (c) Additional provisions In addition, such agreements shall contain such provisions as the Administrator finds nec- essary to assure that— (1) no insurance company or other insurer which meets the requirements prescribed under section 4051(b) of this title, and which has indicated an intention to participate in the flood insurance program on a risk-sharing basis, will be excluded from participating in the pool, (2) the insurance companies and other insur- ers participating in the pool will take what- ever action may be necessary to provide con- tinuity of flood insurance coverage or reinsur- ance by the pool, and (3) any insurance companies and other insur- ers, insurance agents and brokers, and insur- ance adjustment organizations will be per- mitted to cooperate with the pool as fiscal agents or otherwise, on other than a risk-shar- ing basis, to the maximum extent practicable. (Pub. L. 90–448, title XIII, § 1332, Aug. 1, 1968, 82 Stat. 582; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, §§ 100232(d)(2), 100238(b)(1), July 6, 2012, 126 Stat. 954, 958.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classi- fied principally to this chapter. For complete classi- fication of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. AMENDMENTS 2012—Subsecs. (a), (b)(3), (c). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Direc- tor’’. Subsec. (c)(2). Pub. L. 112–141, § 100232(d)(2), inserted ‘‘or reinsurance’’ after ‘‘flood insurance coverage’’. 1983—Subsecs. (a), (b)(3), (c). Pub. L. 98–181 sub- stituted ‘‘Director’’ for ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see sec- tion 1377 of Pub. L. 90–448, set out as a note under sec- tion 4001 of this title. TRANSFER OF FUNCTIONS For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency 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 li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. § 4053. Adjustment and payment of claims; judi- cial review; limitations; jurisdiction The insurance companies and other insurers which form, associate, or otherwise join to- gether in the pool under this part may adjust and pay all claims for proved and approved losses covered by flood insurance in accordance with the provisions of this chapter and, upon the disallowance by any such company or other in- surer of any such claim, or upon the refusal of the claimant to accept the amount allowed upon any such claim, the claimant, within one year after the date of mailing of notice of disallow- ance or partial disallowance of the claim, may institute an action on such claim against such company or other insurer in the United States district court for the district in which the in- sured property or the major part thereof shall have been situated, and original exclusive juris- diction is hereby conferred upon such court to hear and determine such action without regard to the amount in controversy. (Pub. L. 90–448, title XIII, § 1333, Aug. 1, 1968, 82 Stat. 583; Pub. L. 98–181, title I [title IV, § 451(d)(3)], Nov. 30, 1983, 97 Stat. 1229.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L.