II 

115TH CONGRESS 

1ST SESSION S. 1058 

To authorize the Administrator of the Federal Emergency Management Agency to terminate certain contracts on the basis of detrimental conduct 

to the National Flood Insurance Program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 4, 2017 

Mr. KENNEDY introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To authorize the Administrator of the Federal Emergency 

Management Agency to terminate certain contracts on 

the basis of detrimental conduct to the National Flood 

Insurance Program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘National Flood Insur5 ance Program Consultant Accountability Act of 2017’’. 


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•S 1058 IS

1 SEC. 2. TERMINATION OF CERTAIN CONTRACTS UNDER 

2 THE NATIONAL FLOOD INSURANCE PRO3 GRAM. 

4 (a) IN GENERAL.—Part C of chapter II National 

5 Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.) 

6 is amended by adding at the end the following: 

7 ‘‘SEC. 1349. TERMINATION OF CONTRACTS. 

8 ‘‘(a) DEFINITION.—In this section— 

9 ‘‘(1) the term ‘covered entity’ means any attor10 ney, law firm, consultant, or third-party company 

11 that provides services to a Write Your Own com12 pany; and 

13 ‘‘(2) the term ‘Write Your Own company’ 

14 means a company participating in the cooperative 

15 undertaking between the insurance industry and the 

16 Federal Insurance and Mitigation Administration 

17 that allows participating property and casualty in18 surance companies to write and service standard 

19 flood insurance policies. 

20 ‘‘(b) TERMINATION.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding any other 

22 provision of law, the Administrator may terminate a 

23 contract or other agreement between a covered enti24 ty and a Write Your Own company if the Adminis25 trator— 


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•S 1058 IS

1 ‘‘(A) determines that the covered entity 

2 has engaged in conduct that is detrimental to 

3 the flood insurance program authorized under 

4 chapter I; and 

5 ‘‘(B) not later than 14 days before termi6 nating the contract or other agreement, pro7 vided notice to the covered entity of the termi8 nation. 

9 ‘‘(2) APPEAL.—The Administrator shall estab10 lish a process for a covered entity to appeal a termi11 nation of a contract or other agreement under para12 graph (1). 

13 ‘‘(3) EARLY TERMINATION PAYOUTS.—The Ad14 ministrator or a Write Your Own company is not re15 quired to make any early termination payout to a 

16 covered entity with respect to a contract or agree17 ment with the Write Your Own company that the 

18 Administrator terminates under paragraph (1).’’. 

19 (b) EFFECTIVE DATE; APPLICABILITY.—The amend20 ment made by subsection (a) shall— 

21 (1) take effect on the date of enactment of this 

22 Act; and 

23 (2) apply to any contract or other agreement 

24 between a covered entity and a Write Your Own 

25 company (as those terms are defined in section 


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•S 1058 IS

1 1349(a) of the National Flood Insurance Act of 

2 1968, as added by subsection (a)) entered into on or 

3 after the date of enactment of this Act. 

Æ 


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