42 U.S.C. § 4054 — Premium equalization payments; basis;

Page 6049 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4055 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified prin- cipally 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 1983—Pub. L. 98–181 inserted ‘‘original exclusive’’ be- fore ‘‘jurisdiction’’. 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. § 4054. Premium equalization payments; basis; aggregate amount; establishment of des- ignated periods (a) The Administrator, on such terms and con- ditions as he may from time to time prescribe, shall make periodic payments to the pool formed or otherwise created under section 4051 of this title, in recognition of such reductions in chargeable premium rates under section 4015 of this title below estimated premium rates under section 4014(a)(1) of this title as are required in order to make flood insurance available on rea- sonable terms and conditions. (b) Designated periods under this section and the methods for determining the sum of pre- miums paid or payable during such periods shall be established by the Administrator. (Pub. L. 90–448, title XIII, § 1334, Aug. 1, 1968, 82 Stat. 583; Pub. L. 93–234, title I, § 111, Dec. 31, 1973, 87 Stat. 981; 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 subsecs. (a) and (b). 1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Sec- retary’’ in subsecs. (a) and (b). 1973—Subsecs. (b), (c). Pub. L. 93–234 redesignated subsec. (c) as (b) and struck out former subsec. (b) pre- scribing formula for sharing losses between Govern- ment and industry and permit necessary flexibility in loss sharing to take into account longer-term loss expe- rience trends and to compensate for lack of precision in actuarial computations. 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. § 4055. Reinsurance coverage (a) Availability for excess losses (1) In general The Administrator is authorized to take such action as may be necessary in order to make available, to the pool formed or other- wise created under section 4051 of this title, reinsurance for losses (due to claims for proved and approved losses covered by flood insurance) which are in excess of losses as- sumed by such pool in accordance with the ex- cess loss agreement entered into under sub- section (c). (2) Private reinsurance The Administrator is authorized to secure reinsurance of coverage provided by the flood insurance program from the private market at rates and on terms determined by the Admin- istrator to be reasonable and appropriate, in an amount sufficient to maintain the ability of the program to pay claims. (b) Availability pursuant to contract, agreement, or other arrangement; payment of premium, fee, or other charge Such reinsurance shall be made available pur- suant to contract, agreement, or any other ar- rangement, in consideration of such payment of a premium, fee, or other charge as the Adminis- trator finds necessary to cover anticipated losses and other costs of providing such reinsur- ance. (c) Excess loss agreement; negotiation The Administrator is authorized to negotiate an excess loss agreement, from time to time, under which the amount of flood insurance re- tained by the pool, after ceding reinsurance, shall be adequate to further the purposes of this chapter, consistent with the objective of main- taining appropriate financial participation and risk sharing to the maximum extent practicable on the part of participating insurance compa- nies and other insurers. (d) Submission of excess losses on portfolio basis All reinsurance claims for losses in excess of losses assumed by the pool shall be submitted on a portfolio basis by such pool in accordance with terms and conditions established by the Admin- istrator. (Pub. L. 90–448, title XIII, § 1335, Aug. 1, 1968, 82 Stat. 583; 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)(3), 100238(b)(1), July 6, 2012, 126 Stat. 954, 958.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (c), was in the original a reference to ‘‘this title’’ meaning title XIII