Flood Insurance Transparency and Accountability Act of 2015

Summary: Flood Insurance Transparency and Accountability Act of 2015 This bill amends the National Flood Insurance Act of 1968 (NFIA) to direct the Federal Emergency Management Agency (FEMA) to declare that the final engineering report of an on-site property inspection conducted by an engineer to assess claims for losses covered by a flood insurance policy:   may not be transmitted to any other person, employer, agency, or entity before it is transmitted to the insured;   may not include alterations by anyone other than the person responsible for the report; and    shall be transmitted to the insured in a manner giving reasonable assurance that it is transmitted directly to the insured by the responsible person in charge.  The bill prescribes the manner in which such reports (including any adjustment and field reports) shall be transmitted to the insured.  The bill revises the statute of limitations for appealing a disallowed claim for judicial review. The current limit of one year after the mailing date of FEMA's notice of disallowance or partial disallowance is repealed. The statute shall be extended to two years after the occurrence of the losses involved in a claim. If FEMA, or an insurance company denies any claim for losses that is appealed to FEMA, the claimant may institute an action in U.S. district court not later than the later of: (1) the expiration of the 90-day period beginning the date of a final determination upon appeal denying such claim in whole or in part, or (2) the expiration of the 2-year period after the occurrence of the losses. The Homeowner Flood Insurance Affordability Act of 2014 is amended to require the Flood Insurance Advocate to provide a direct point of contact for policyholders under the National Flood Insurance Program to discuss the status of their claim appeals and the basis of the initial decision to deny their claims. The NFIA is further amended to require FEMA to conduct an annual review of each private entity participating in the Program, including any company that has contracted with a Write Your Own insurance company to provide any service related to a policy or claim under the Program, including adjusting, engineering, and legal services, to ensure compliance with FEMA policies and procedures to prevent fraud and protect policyholders. A Write Your Own means the cooperative undertaking between the insurance industry and the Federal Insurance Administration which allows participating property and casualty insurance companies to write and service standard flood insurance policies. FEMA shall also: (1) create and maintain a publically searchable online database that includes specified information regarding claims filed under the Program, and (2) establish guidelines and standards to require that any engineering or litigation cost billed to the Program by a Write Your Own insurance company is justified on a case-by-case basis.  A claim for damage to or loss of property shall not be denied based on the exclusion of earth movement (earthquake, volcanic eruption, landslide, sinkhole, mudflow, or shock wave) in the Standard Flood Insurance Policy if the claim is filed as the result of a flood, including a claim for damage to or loss or property caused by earth movement caused by a flood.  The Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 is amended to require FEMA to ensure that: (1) the appeals process has clear rules, forms, and deadlines; (2) these are given to a claimant at the time a claim is first denied; and (3) the policyholder's legal options are explained upon denial of appeal. The Department of Homeland Security shall report to Congress on specific actions it will take to:  identify individuals and private entities that have engaged in activities to defraud policyholders under the Program following Superstorm Sandy, and prevent those individuals and private entities from continuing to receive federal funding.  FEMA shall report to Congress regarding National Flood Insurance Program Transformation Task Force recommendations for reforming the Program, and a timeline for implementing them.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Insurance Transparency and 
Accountability Act of 2015''.

SEC. 2. FLOOD INSURANCE TRANSPARENCY, ACCOUNTABILITY, AND REFORM.

    (a) Reports and Other Claim-Related Documents.--Section 1312 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended by 
adding at the end the following:
    ``(d) Final Engineering Reports.--The Administrator shall require 
that, in the case of any on-site inspection of a property by an 
engineer for the purpose of assessing any claim for losses covered by a 
policy for flood insurance coverage provided under this title, the 
final engineering report shall be provided to the insured under the 
policy, as follows:
            ``(1) Timing.--The final engineering report may not be 
        transmitted to any other person, employer, agency, or entity, 
        before it is transmitted to the insured.
            ``(2) Prohibition on alterations; certification.--The final 
        engineering report may not include alterations by, or at the 
        request of, anyone other than the responsible in charge for 
        such report and shall include a certification, signed by the 
        responsible in charge for the report, that it does not contain 
        any such alterations.
            ``(3) Transmittal.--The final engineering report shall be 
        transmitted to the insured in a manner as the Administrator 
        shall provide that provides reasonable assurance that it was 
        transmitted directly to the insured by the responsible in 
        charge.
            ``(4) Reports covered.--For purposes of this subsection, 
        the term `final engineering report' means an engineering 
        report, survey, or other document in connection with such claim 
        that--
                    ``(A) is based on such on-site inspection;
                    ``(B) contains final conclusions with respect to an 
                engineering issue or issues involved in such claim; and
                    ``(C) is signed by the responsible in charge or 
                affixed with the seal of such responsible in charge, or 
                both.
    ``(e) Claims Adjustment Reports.--The Administrator shall require 
that, in the case of any on-site inspection of a property by a claims 
adjustor for the purpose of assessing any claim for losses covered by a 
policy for flood insurance coverage provided under this title, any 
report shall be provided to the insured under the policy, as follows:
            ``(1) Timing.--Such report may not be transmitted to any 
        other person, employer, agency, or entity, before it is 
        transmitted to the insured.
            ``(2) Prohibition on alterations; certification.--The 
        report may not include alterations by, or at the request of, 
        anyone other than such preparer and shall include a 
        certification, signed by the preparer of the report, that it 
        does not contain any such alterations.
            ``(3) Transmittal.--The report shall be transmitted to the 
        insured in a manner as the Administrator shall provide that 
        provides reasonable assurance that it was transmitted directly 
        to the insured by the preparer.
            ``(4) Reports covered.--For purposes of this subsection, 
        the term `report' means any report or document in connection 
        with such claim that is based on such on-site inspection by the 
        claims adjustor, including any adjustment report and field 
        report. Such term also includes any draft, preliminary version, 
        or copy of any such report and any amendments or additions to 
        any such report. Such term does not include any engineering 
        report, as such term is defined for purposes of subsection (d).
    ``(f) Other Claim-Related Documents.--
            ``(1) Definition of claim-related document.--In this 
        subsection, the term `claim-related document' means any 
        document, other than a final engineering report (as defined in 
        subsection (d)) or a report (as defined in subsection (e)), 
        that was prepared for the purposes of assessing a claim for 
        losses covered by flood insurance made available under this 
        title, including--
                    ``(A) a repair and replacement estimate or bid;
                    ``(B) an appraisal;
                    ``(C) a scope of loss;
                    ``(D) a drawing;
                    ``(E) a plan;
                    ``(F) a report, including a draft report prepared 
                based on an on-site inspection of a property conducted 
                by a claims adjustor or engineer;
                    ``(G) a third-party finding on the amount of loss, 
                amount of covered damage, or cost of repairs; and
                    ``(H) any other valuation, measurement, or loss 
                adjustment calculation of the amount of loss, amount of 
                covered damage, or cost of repairs.
            ``(2) Availability of documents.--Any entity servicing a 
        claim under the national flood insurance program--
                    ``(A) shall retain each claim-related document 
                prepared by or for the entity;
                    ``(B) upon request by a claimant or an authorized 
                representative of a claimant, shall provide to the 
                claimant or representative a copy of any claim-related 
                document described in subparagraph (A) that pertains to 
                the claimant; and
                    ``(C) not later than 30 days after receiving notice 
                of a claim, shall notify the claimant that the claimant 
                or an authorized representative of the claimant may 
                obtain, upon request, a copy of any claim-related 
                document described in subparagraph (A) that pertains to 
                the claimant.''.
    (b) Judicial Review.--
            (1) Government program with industry assistance.--Section 
        1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4072) is amended by striking ``within one year after the date 
        of mailing of notice of disallowance or partial disallowance by 
        the Administrator'' and inserting the following: ``not later 
        than the expiration of the 2-year period beginning upon the 
        date of the occurrence of the losses involved in such claim or, 
        in the case of a denial of a claim for losses that is appealed 
        to the Administrator, not later than (1) the expiration of the 
        90-day period beginning upon the date of a final determination 
        upon appeal denying such claim in whole or in part, or (2) the 
        expiration of such 2-year period, whichever is later''.
            (2) Industry program with federal financial assistance.--
        Section 1333 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4053) is amended by striking ``within one year after the 
        date of mailing of notice of disallowance or partial 
        disallowance of the claim'' and inserting the following: ``not 
        later than the expiration of the 2-year period beginning upon 
        the date of the occurrence of the losses involved in such claim 
        or, in the case of a denial of a claim for losses that is 
        appealed to the Administrator, not later than (1) the 
        expiration of the 90-day period beginning upon the date of a 
        final determination upon appeal denying such claim in whole or 
        in part, or (2) the expiration of such 2-year period, whichever 
        is later''.
    (c) Flood Insurance Advocate.--Section 24(b) of the Homeowner Flood 
Insurance Affordability Act of 2014 (42 U.S.C. 4033(b)) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in subparagraph (5), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) provide a direct point of contact for policyholders 
        under the National Flood Insurance Program to discuss the 
        status of their claim appeals and the basis of the decision to 
        initially deny their claims.''.
    (d) Records and Reviews.--Section 1348 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4084) is amended by adding at the end 
the following:
    ``(c) Annual Review.--The Administrator shall conduct an annual 
review of each private entity participating in the national flood 
insurance program, including any company that has entered into a 
contract with a Write Your Own insurance company to provide any service 
related to a policy or claim under the national flood insurance 
program, including adjusting, engineering, and legal services, to 
ensure compliance with this title and with all policies and procedures 
established by the Administrator to prevent fraud and protect 
policyholders.''.
    (e) Publication of Claims Data.--Section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019), as amended by subsection (a), 
is amended by adding at the end the following:
    ``(g) Publication of Claims Data.--Not later than 1 year after the 
date of enactment of the Flood Insurance Transparency and 
Accountability Act of 2015, the Administrator shall create and maintain 
a publically searchable online database that includes, with respect to 
claims filed under the national flood insurance program after that date 
of enactment--
            ``(1) the number of claims filed each month, broken down by 
        State;
            ``(2) the number of claims paid in part or in full;
            ``(3) the number of claims denied and the reasons cited for 
        each denial; and
            ``(4) the number of claim denials appealed, the number of 
        claim denials upheld on appeal, and the number of claim denials 
        overturned on appeal.''.
    (f) Engineering and Litigation Costs.--Section 1311 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4018) is amended by adding at 
the end the following:
    ``(c) Engineering and Litigation Costs.--The Administrator shall--
            ``(1) in order to ensure that taxpayer funds are being 
        appropriately expended, establish clear guidelines and 
        standards to require that any engineering or litigation cost 
        billed to the national flood insurance program by a Write Your 
        Own insurance company is justified on a case-by-case basis, 
        both by the entity that originally incurs the cost and by the 
        Write Your Own Company; and
            ``(2) enforce compliance with the guidelines and standards 
        established under paragraph (1).''.
    (g) Earth Movement.--Section 1306 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the 
following:
    ``(e) Earth Movement.--A flood insurance claim filed under this 
title for damage to or loss of property shall not be denied based on 
the earth movement exclusion in the Standard Flood Insurance Policy if 
the claim is filed as the result of a flood, including a claim for 
damage to or loss or property caused by earth movement that was caused 
by a flood.''.
    (h) Appeals Process.--Section 205 of the Bunning-Bereuter-
Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is 
amended--
            (1) by striking ``Not later than'' and inserting ``(a) In 
        General.--Not later than''; and
            (2) by adding at the end the following:
    ``(b) Review of Appeals.--
            ``(1) Clarity.--The Director shall ensure that the appeals 
        process established under subsection (a) has clear rules, 
        forms, and deadlines.
            ``(2) Notification upon initial denial of claim.--The 
        Director shall ensure that a claimant is provided with the 
        rules, forms, and deadlines described in paragraph (1) at the 
        time a claim is first denied in full or in part, including--
                    ``(A) the effective date of the denial;
                    ``(B) a justification for the denial, including 
                supporting documentation;
                    ``(C) the date on which the period of limitation 
                for instituting an action against the Administrator on 
                the claim under section 1341 will end; and
                    ``(D) a point of contact through which the claimant 
                can directly discuss an appeal with a representative of 
                the Federal Emergency Management Agency.
            ``(3) Notification upon denial of appeal.--If the 
        Administrator denies an appeal filed by a policyholder, the 
        Administrator shall include with the notice of denial an 
        explanation of the policyholder's legal options for further 
        challenging the denial.''.
    (i) Definition of Write Your Own.--Section 1370(a) 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 ``; and''; and
            (3) by adding at the end the following:
            ``(16) the term `Write Your Own' means the cooperative 
        undertaking between the insurance industry and the Federal 
        Insurance and Mitigation Administration which allows 
        participating property and casualty insurance companies to 
        write and service standard flood insurance policies.''.

SEC. 3. REPORTS TO CONGRESS.

    (a) Definitions.--In this section--
            (1) the term ``National Flood Insurance Program'' means the 
        program established under the National Flood Insurance Act of 
        1968 (42 U.S.C. 4001 et seq.);
            (2) the term ``Task Force'' means the National Flood 
        Insurance Program Transformation Task Force established by the 
        Federal Emergency Management Agency; and
            (3) the term ``Write Your Own'' has the meaning given the 
        term in section 1370(a) of the National Flood Insurance Act of 
        1968 (42 U.S.C. 4121(a)), as amended by section 2(i).
    (b) Report to Congress on Accountability for Defrauding 
Policyholders.--Not later than 90 days after the date of enactment of 
this Act, the Secretary of Homeland Security shall submit to Congress a 
report on specific actions the Department of Homeland Security will 
take to identify individuals and private entities that have engaged in 
activities to defraud policyholders under the National Flood Insurance 
Program following Superstorm Sandy and prevent those individuals and 
private entities from continuing to receive Federal funding through--
            (1) contracts with, or employment by, a Write Your Own 
        insurance company; or
            (2) employment by the Federal Emergency Management Agency.
    (c) Report to Congress on Recommendations of the NFIP 
Transformation Task Force.--Not later than 1 year after the date of 
enactment of this Act, the Administrator of the Federal Emergency 
Management Agency shall submit to Congress a report that describes--
            (1) the recommendations of the Task Force for reforming the 
        National Flood Insurance Program;
            (2) a timeline for implementing the recommendations of the 
        Task Force; and
            (3) any recommendations of the Task Force that require 
        additional legislation.