I 

112TH CONGRESS 

1ST SESSION H. R. 1430 

To require regulated lending institutions, Federal agency lenders, and Government-sponsored enterprises for housing to accept flood insurance coverage 

provided by a private entity that otherwise meets the requirements for 

the mandatory purchase of flood insurance to accept such flood insurance 

coverage as satisfaction of such requirements. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 7, 2011 

Mr. NUNES (for himself, Mr. CHAFFETZ, and Mr. PAUL) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To require regulated lending institutions, Federal agency 

lenders, and Government-sponsored enterprises for housing to accept flood insurance coverage provided by a 

private entity that otherwise meets the requirements for 

the mandatory purchase of flood insurance to accept 

such flood insurance coverage as satisfaction of such 

requirements. 

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 ‘‘Flood Insurance 

5 Choice Act’’. 


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1 SEC. 2. USE OF PRIVATE INSURANCE TO SATISFY REQUIRE2 MENT TO PURCHASE FLOOD INSURANCE TO 

3 RECEIVE A MORTGAGE LOAN. 

4 Section 102(b) of the Flood Disaster Protection Act 

5 of 1973 (42 U.S.C. 4012a(b)) is amended— 

6 (1) in paragraph (1)— 

7 (A) by striking ‘‘lending institutions not to 

8 make’’ and inserting ‘‘lending institutions— 

9 ‘‘(A) not to make’’; 

10 (B) in subparagraph (A), as designated by 

11 subparagraph (A) of this paragraph, by striking 

12 ‘‘less.’’ and inserting ‘‘less; and’’; and 

13 (C) by adding at the end the following new 

14 subparagraph: 

15 ‘‘(B) to accept private flood insurance as satis16 faction of the flood insurance coverage requirement 

17 under subparagraph (A) if the coverage provided by 

18 such private flood insurance meets the requirements 

19 for coverage under such subparagraph.’’; 

20 (2) in paragraph (2), by inserting after ‘‘pro21 vided in paragraph (1)’’ the following new sentence: 

22 ‘‘Each Federal agency lender shall accept private 

23 flood insurance as satisfaction of the flood insurance 

24 coverage requirement under the preceding sentence 

25 if the flood insurance coverage provided by such priVerDate Mar 15 2010 23:38 Apr 08, 2011 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1430.IH H1430

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•HR 1430 IH

1 vate flood insurance meets the requirements for cov2 erage under such sentence.’’; 

3 (3) in paragraph (3), in the matter following 

4 subparagraph (B), by adding at the end the fol5 lowing new sentence: ‘‘The Federal National Mort6 gage Association and the Federal Home Loan Mort7 gage Corporation shall accept private flood insurance 

8 as satisfaction of the flood insurance coverage re9 quirement under the preceding sentence if the flood 

10 insurance coverage provided by such private flood in11 surance meets the requirements for coverage under 

12 such sentence.’’; and 

13 (4) by adding at the end the following new 

14 paragraph: 

15 ‘‘(5) PRIVATE FLOOD INSURANCE DEFINED.—In 

16 this subsection, the term ‘private flood insurance’ means 

17 a contract for flood insurance coverage allowed for sale 

18 under the laws of any State.’’. 

Æ 


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