42 U.S.C. § 4019 — Payment of claims

Page 6035 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4019 equal to not less than 7.5 percent of the re- serve ratio required under subsection (b). (e) Limitation on reserve ratio In any given fiscal year, if the Administrator determines that the reserve ratio required under subsection (b) cannot be achieved, the Adminis- trator shall submit, on a calendar quarterly basis, a report to Congress that— (1) describes and details the specific con- cerns of the Administrator regarding the con- sequences of the reserve ratio not being achieved; (2) demonstrates how such consequences would harm the long-term financial soundness of the flood insurance program; and (3) indicates the maximum attainable re- serve ratio for that particular fiscal year. (f) Investment The Secretary of the Treasury shall invest such amounts of the Reserve Fund as the Sec- retary determines advisable in obligations issued or guaranteed by the United States. (Pub. L. 90–448, title XIII, § 1310A, as added Pub. L. 112–141, div. F, title II, § 100212, July 6, 2012, 126 Stat. 922; amended Pub. L. 113–89, §§ 8(b), 20, Mar. 21, 2014, 128 Stat. 1024, 1028.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (c)(3)(A), was in the original ‘‘this Act’’, and was translated as reading ‘‘this title’’, meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insur- ance Act of 1968, which is classified principally to this chapter, to reflect the probable intent of Congress. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. AMENDMENTS 2014—Subsec. (c)(4). Pub. L. 113–89, § 8(b), added par. (4). Subsec. (e). Pub. L. 113–89, § 20, inserted ‘‘, on a cal- endar quarterly basis,’’ after ‘‘submit’’ in introductory provisions. § 4018. Operating costs and allowances; defini- tions (a) The Administrator shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of estab- lishing— (1) a current schedule of operating costs ap- plicable both to risk-sharing insurance compa- nies and other insurers and to insurance com- panies and other insurers, insurance agents and brokers, and insurance adjustment organi- zations participating on other than a risk- sharing basis, and (2) a current schedule of operating allow- ances applicable to risk-sharing insurance companies and other insurers, which may be payable in accordance with the provisions of subchapter II, and such schedules shall from time to time be prescribed in regula- tions. (b) For purposes of subsection (a)— (1) the term ‘‘operating costs’’ shall (without limiting such term) include— (A) expense reimbursements covering the direct, actual, and necessary expenses in- curred in connection with selling and serv- icing flood insurance coverage; (B) reasonable compensation payable for selling and servicing flood insurance cov- erage, or commissions or service fees paid to producers; (C) loss adjustment expenses; and (D) other direct, actual, and necessary ex- penses which the Administrator finds are in- curred in connection with selling or serv- icing flood insurance coverage; and (2) the term ‘‘operating allowances’’ shall (without limiting such term) include amounts for profit and contingencies which the Admin- istrator finds reasonable and necessary to carry out the purposes of this chapter. (Pub. L. 90–448, title XIII, § 1311, Aug. 1, 1968, 82 Stat. 579; 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 REFERENCES IN TEXT This chapter, referred to in subsec. (b)(2), 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)(1)(D), (2). Pub. L. 112–141 sub- stituted ‘‘Administrator’’ for ‘‘Director’’. 1983—Subsecs. (a), (b)(1)(D), (2). Pub. L. 98–181 sub- stituted ‘‘Director’’ for ‘‘Secretary’’ wherever appear- ing. 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. § 4019. Payment of claims (a) In general The Administrator is authorized to prescribe regulations establishing the general method or Page 6036 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4020 methods by which proved and approved claims for losses may be adjusted and paid for any dam- age to or loss of property which is covered by flood insurance made available under the provi- sions of this chapter. (b) Minimum annual deductible (1) Pre-firm properties For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement oc- curred on or before December 31, 1974, or be- fore the effective date of an initial flood insur- ance rate map published by the Administrator under section 4101 of this title for the area in which such structure is located, the minimum annual deductible for damage to such struc- ture shall be— (A) $1,500, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and (B) $2,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000. (2) Post-firm properties For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement oc- curred after December 31, 1974, or after the ef- fective date of an initial flood insurance rate map published by the Administrator under section 4101 of this title for the area in which such structure is located, the minimum an- nual deductible for damage to such structure shall be— (A) $1,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and (B) $1,250, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000. (c) Payment of claims to condominium owners The Administrator may not deny payment for any damage to or loss of property which is cov- ered by flood insurance to condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association in which such owner is a member, based solely, or in any part, on the flood insurance coverage of the condo- minium association or others on the overall property owned by the condominium associa- tion. (Pub. L. 90–448, title XIII, § 1312, Aug. 1, 1968, 82 Stat. 579; 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, §§ 100210, 100214, July 6, 2012, 126 Stat. 920, 924.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) 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—Pub. L. 112–141, § 100210, designated existing pro- visions as subsec. (a) and inserted heading, substituted ‘‘The Administrator is’’ for ‘‘The Director is’’, and added subsec. (b). Subsec. (c). Pub. L. 112–141, § 100214, added subsec. (c). 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. § 4020. Dissemination of flood insurance informa- tion The Administrator shall from time to time take such action as may be necessary in order to make information and data available to the pub- lic, and to any State or local agency or official, with regard to— (1) the flood insurance program, its coverage and objectives, and (2) estimated and chargeable flood insurance premium rates, including the basis for and dif- ferences between such rates in accordance with the provisions of section 4015 of this title. (Pub. L. 90–448, title XIII, § 1313, Aug. 1, 1968, 82 Stat. 579; 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’’ in introductory provisions. 1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Sec- retary’’ in introductory provisions. 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.