IB 

Union Calendar No. 209 

116TH CONGRESS 

1ST SESSION H. R. 3111 

[Report No. 116–261] 

To make administrative reforms to the National Flood Insurance Program 

to increase fairness and accuracy and protect the taxpayer from program 

fraud and abuse, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2019 

Ms. VELA ́ZQUEZ introduced the following bill; which was referred to the 

Committee on Financial Services 

OCTOBER 28, 2019 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 5, 2019] 


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A BILL 

To make administrative reforms to the National Flood Insurance Program to increase fairness and accuracy and 

protect the taxpayer from program fraud and abuse, 

and for other purposes. 


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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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Na5 tional Flood Insurance Program Administrative Reform 

6 Act of 2019’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Pilot program for properties with preexisting conditions. 

Sec. 3. Penalties for fraud and false statements in the National Flood Insurance 

Program. 

Sec. 4. Enhanced policyholder appeals process rights. 

Sec. 5. Deadline for approval of claims. 

Sec. 6. Litigation process oversight and reform. 

Sec. 7. Prohibition on hiring disbarred attorneys. 

Sec. 8. Technical assistance reports. 

Sec. 9. Improved disclosure requirement for standard flood insurance policies. 

Sec. 10. Reserve Fund amounts. 

Sec. 11. Sufficient staffing for Office of Flood Insurance Advocate. 

Sec. 12. Federal Flood Insurance Advisory Committee. 

Sec. 13. Interagency guidance on compliance. 

Sec. 14. GAO study of claims adjustment practices. 

Sec. 15. GAO study of flood insurance coverage treatment of earth movement. 

Sec. 16. Definitions. 

9 SEC. 2. PILOT PROGRAM FOR PROPERTIES WITH PRE10 EXISTING CONDITIONS. 

11 Section 1311 of the National Flood Insurance Act of 

12 1968 (42 U.S.C. 4018) is amended by adding at the end 

13 the following new subsection: 

14 ‘‘(c) PILOT PROGRAM FOR INVESTIGATION OF PRE15 EXISTING STRUCTURAL CONDITIONS.— 

16 ‘‘(1) VOLUNTARY PROGRAM.—The Administrator 

17 shall carry out a pilot program under this subsection 


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1 to provide for companies participating in the Write 

2 Your Own program (as such term is defined in sec3 tion 1370(a) (42 U.S.C. 4121(a))) to investigate pre4 existing structural conditions of insured properties 

5 and potentially insured properties that could result in 

6 the denial of a claim under a policy for flood insur7 ance coverage under this title in the event of a flood 

8 loss to such property. Participation in the pilot pro9 gram shall be voluntary on the part of Write Your 

10 Own companies. 

11 ‘‘(2) INVESTIGATION OF PROPERTIES.—Under 

12 the pilot program under this subsection, a Write Your 

13 Own company participating in the program shall— 

14 ‘‘(A) provide in policies for flood insurance 

15 coverage under this title covered by the program 

16 that, upon the request of the policyholder, the 

17 company shall provide for— 

18 ‘‘(i) an investigation of the property 

19 covered by such policy, using common meth20 ods, to determine whether preexisting struc21 tural conditions are present that could re22 sult in the denial of a claim under such pol23 icy for flood losses; and 

24 ‘‘(ii) if such investigation is not deter25 minative, an on-site inspection of the propVerDate Sep 11 2014 21:34 Oct 29, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3111.RH H3111

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1 erty to determine whether such preexisting 

2 structural conditions are present; 

3 ‘‘(B) upon completion of an investigation or 

4 inspection pursuant to subparagraph (A) that 

5 determines that such a preexisting structural 

6 condition is present or absent, submit a report to 

7 the policyholder and Administrator describing 

8 the condition; and 

9 ‘‘(C) impose a surcharge on each policy de10 scribed in subparagraph (A) in such amount 

11 that the Administrator determines is appropriate 

12 to cover the costs of investigations and inspec13 tions performed pursuant to such policies and 

14 reimburse Write Your Own companies partici15 pating in the program under this subsection for 

16 such costs. 

17 ‘‘(3) INTERIM REPORT.—Not later than Decem18 ber 31, 2023, the Administrator shall submit a report 

19 to the Committee on Financial Services of the House 

20 of Representatives and the Committee on Banking, 

21 Housing, and Urban Affairs of the Senate describing 

22 the operation of the pilot program to that date. 

23 ‘‘(4) SUNSET.—The Administrator may not pro24 vide any policy for flood insurance described in para25 graph (2)(A) after December 31, 2024. 


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1 ‘‘(5) FINAL REPORT.—Not later than March 31, 

2 2025, the Administrator shall submit a final report 

3 regarding the pilot program under this section to the 

4 Committee on Financial Services of the House of Rep5 resentatives and the Committee on Banking, Housing, 

6 and Urban Affairs of the Senate. The report shall in7 clude any findings and recommendations of the Ad8 ministrator regarding the pilot program.’’. 

9 SEC. 3. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN 

10 THE NATIONAL FLOOD INSURANCE PRO11 GRAM. 

12 Part C of chapter II of the National Flood Insurance 

13 Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding 

14 at the end the following new section: 

15 ‘‘SEC. 1349. PENALTIES FOR FRAUD AND FALSE STATE16 MENTS IN THE NATIONAL FLOOD INSURANCE 

17 PROGRAM. 

18 ‘‘(a) PROHIBITED ACTS.—A person shall not know19 ingly make a false, fictitious, or fraudulent statement, pro20 duction, or submission in connection with the proving or 

21 adjusting of a claim for flood insurance coverage made 

22 available under this Act. Such prohibited acts include— 

23 ‘‘(1) knowingly forging an engineering report, 

24 claims adjustment report or technical assistance re25 port used to support a claim determination; 


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1 ‘‘(2) knowingly making any materially false, fic2 titious, or fraudulent statement or representation in 

3 an engineering report, claims adjustment report, or 

4 technical assistance report to support a claim deter5 mination that results in a wrongful denial or sub6 stantial payment error of flood insurance coverage; 

7 and 

8 ‘‘(3) knowingly submitting a materially false, 

9 fictitious, or fraudulent claim that results in wrongful 

10 payment of flood insurance coverage. 

11 ‘‘(b) DEFINITION.—For purposes of this section, the 

12 term ‘knowingly’ means having actual awareness of the pro13 hibitions under this part and acting deliberately in viola14 tion of such prohibitions. 

15 ‘‘(c) ADMINISTRATIVE REMEDY.—Prior to any legal 

16 action being taken related to this section, all administrative 

17 remedies shall be exhausted. 

18 ‘‘(d) RULE OF CONSTRUCTION.—This section shall not 

19 be construed— 

20 ‘‘(1) to prevent the Federal Government from 

21 bringing action against a company or individual 

22 under applicable statutes, including the False Claims 

23 Act; and 


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1 ‘‘(2) as creating any action, private right of ac2 tion, or remedy not otherwise provided by this title or 

3 under Federal law. 

4 ‘‘(e) STATE ACTION.—Any person found to have vio5 lated subsection (a) shall be referred to the appropriate and 

6 relevant State licensing agency by the Attorney General.’’. 

7 SEC. 4. ENHANCED POLICYHOLDER APPEALS PROCESS 

8 RIGHTS. 

9 (a) ESTABLISHMENT.—Part C of chapter II of the Na10 tional Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), 

11 as amended by the preceding provisions of this Act, is fur12 ther amended by adding at the end the following new sec13 tion: 

14 ‘‘SEC. 1350. APPROVAL OF DECISIONS RELATING TO FLOOD 

15 INSURANCE COVERAGE. 

16 ‘‘(a) IN GENERAL.—The Administrator shall establish 

17 an appeals process to enable holders of a flood insurance 

18 policy provided under this title to appeal decisions, with 

19 respect to the disallowance, in whole or in part, of any 

20 claims for losses covered by flood insurance. Such appeals 

21 shall be limited to the claim or portion of the claim dis22 allowed. 

23 ‘‘(b) APPEAL DECISION.—Upon a decision in an ap24 peal under subsection (a), the Administrator shall provide 

25 the policyholder with a written appeal decision. The appeal 


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1 decision shall explain the Administrator’s determination to 

2 uphold, modify, or overturn the decision. The Administrator 

3 may direct the Write Your Own company to take action 

4 necessary to resolve the appeal, to include re-inspection, re5 adjustment, or payment, as appropriate. 

6 ‘‘(c) DEADLINE FOR APPEALS DECISION.—The Ad7 ministrator shall issue an appeals decision pursuant to sub8 section (b) not later than the expiration of the 120-day pe9 riod beginning upon the day on which the Administrator 

10 acknowledges receipt of a request by the policyholder to pur11 sue an appeal of the initial determination regarding ap12 proval, disapproval, or amount of payment by the Adminis13 trator. In cases where extraordinary circumstances, as es14 tablished by regulation, are demonstrated, the 120-day pe15 riod may be extended by additional successive periods of 

16 30 days. 

17 ‘‘(d) ADMINISTRATIVE REMEDY.—A policyholder shall 

18 exhaust all administrative remedies, including submission 

19 of disputed claims to appeal under subsection (a), prior to 

20 commencing legal action on a disputed claim. 

21 ‘‘(e) RULES OF CONSTRUCTION.—This section shall not 

22 be construed as— 

23 ‘‘(1) making the Federal Emergency Manage24 ment Agency or the Administrator a party to the 

25 flood insurance contract; or 


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1 ‘‘(2) creating any action or remedy not otherwise 

2 provided by this title. 

3 ‘‘(f) POLICYHOLDER LITIGATION.—This section shall 

4 not be construed to prevent a policyholder from bringing 

5 legal action against the Federal Emergency Management 

6 Agency or a Write Your Own company following the ex7 haustion of all administrative remedies and pursuant to 

8 applicable statute.’’. 

9 (b) MAINTENANCE OF LITIGATION RIGHTS.—Section 

10 1341 of the National Flood Insurance Act of 1968 (42 

11 U.S.C. 4072) is amended by adding after the period at the 

12 end the following: ‘‘For purposes of this section, the time 

13 from which the Administrator has acknowledged receipt of 

14 a request by the policyholder to pursue an appeal of the 

15 initial determination regarding approval, disapproval, or 

16 amount of payment by the Administrator until the Admin17 istrator mails a final determination of such appeal shall 

18 not be considered towards the one year statute of limitation 

19 under this Act. However, this section shall not be construed 

20 as creating any action or remedy not otherwise provided 

21 by this title.’’. 

22 (c) REPEAL.—Section 205 of the Bunning-Bereuter23 Blumenauer Flood Insurance Reform Act of 2004 (42 

24 U.S.C. 4011 note) is hereby repealed. 


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1 SEC. 5. DEADLINE FOR APPROVAL OF CLAIMS. 

2 (a) IN GENERAL.—Section 1312 of the National Flood 

3 Insurance Act of 1968 (42 U.S.C. 4019) is amended— 

4 (1) in subsection (a), by striking ‘‘The Adminis5 trator’’ and inserting ‘‘Subject to other provisions of 

6 this section, the Administrator’’; and 

7 (2) by adding at the end the following new sub8 section: 

9 ‘‘(d) DEADLINE FOR APPROVAL OF CLAIMS.— 

10 ‘‘(1) IN GENERAL.—The Administrator shall pro11 vide that, in the case of any claim for damage to or 

12 loss of property under flood insurance coverage made 

13 available under this title, an initial determination re14 garding approval of a claim for payment or dis15 approval of the claim be made, and notification of 

16 such determination be provided to the insured making 

17 such claim, not later than the expiration of the 120- 

18 day period (as such period may be extended pursuant 

19 to paragraph (2)) beginning upon the day on which 

20 the policyholder submits a signed proof of loss detail21 ing the damage and amount of the loss. Payment of 

22 approved claims shall be made as soon as possible 

23 after such approval. 

24 ‘‘(2) EXTENSION OF DEADLINE.—The Adminis25 trator shall— 


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1 ‘‘(A) provide that the period referred to in 

2 paragraph (1) may be extended by additional 

3 successive periods of 30 days in cases where ex4 traordinary circumstances are demonstrated; 

5 and 

6 ‘‘(B) establish, by regulation, criteria for 

7 demonstrating such extraordinary cir8 cumstances.’’. 

9 (b) APPLICABILITY.—The amendments made by sub10 section (a) shall apply to any claim under flood insurance 

11 coverage made available under the National Flood Insur12 ance Act of 1968 (42 U.S.C. 4001 et seq.) pending on the 

13 date of the enactment of this Act and any claims made after 

14 such date of enactment. 

15 SEC. 6. LITIGATION PROCESS OVERSIGHT AND REFORM. 

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

17 Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as 

18 amended by the preceding provisions of this Act, is further 

19 amended by adding at the end the following new section: 

20 ‘‘SEC. 1351. OVERSIGHT OF LITIGATION. 

21 ‘‘(a) OVERSIGHT.—The Administrator shall monitor 

22 and oversee litigation conducted by Write Your Own com23 panies arising under contracts for flood insurance sold pur24 suant to this title, to ensure that— 


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1 ‘‘(1) litigation expenses are reasonable, appro2 priate, and cost-effective; and 

3 ‘‘(2) Write Your Own companies comply with 

4 guidance and procedures established by the Adminis5 trator regarding the conduct of litigation. 

6 ‘‘(b) DENIAL OF REIMBURSEMENT FOR EXPENSES.— 

7 The Administrator may deny reimbursement for litigation 

8 expenses that are determined to be unreasonable, excessive, 

9 contrary to guidance issued by the Administrator, or out10 side the scope of any arrangement entered into with a Write 

11 Your Own company. 

12 ‘‘(c) JOINT DEFENSE.— 

13 ‘‘(1) AUTHORITY.—The Administrator and the 

14 Write Your Own companies may enter into, and op15 erate under, a joint defense agreement for any claim 

16 or lawsuit, or multiple claims or lawsuits, arising 

17 under a contract of flood insurance. 

18 ‘‘(2) FREE FLOW OF INFORMATION.—Under such 

19 joint defense agreement, there may be the free flow of 

20 information between the Write Your Own companies, 

21 the Administrator, the United States Department of 

22 Justice, and legal counsel for the Write Your Own 

23 companies for the purpose of litigation coordination 

24 and to allow the Administrator to perform oversight 

25 responsibility of such litigation. 


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1 ‘‘(3) ARRANGEMENT.—Such joint defense agree2 ment may be included in the Arrangement between 

3 the Administrator and the Write Your Own compa4 nies. 

5 ‘‘(4) REGULATIONS.—The Administrator may 

6 issue rules or regulations or provide such formal guid7 ance as the Administrator considers necessary and 

8 appropriate in order to further such joint defense 

9 agreement with the Write Your Own companies.’’. 

10 (b) IMPLEMENTATION.—The Administrator of the Fed11 eral Emergency Management Agency shall initiate compli12 ance with section 1351(c) of the National Flood Insurance 

13 Act of 1968, as added by the amendment made by subsection 

14 (a) of this section, not later than the expiration of the 12- 

15 month period beginning on the date of the enactment of this 

16 Act. 

17 SEC. 7. PROHIBITION ON HIRING DISBARRED ATTORNEYS. 

18 Part C of chapter II of the National Flood Insurance 

19 Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the 

20 preceding provisions of this Act, is further amended by add21 ing at the end the following new section: 

22 ‘‘SEC. 1352. PROHIBITION ON HIRING DISBARRED ATTOR23 NEYS. 

24 ‘‘The Administrator may not at any time newly em25 ploy in connection with the flood insurance program under 


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1 this title any attorney who has been suspended or disbarred 

2 by any court, bar, or Federal or State agency to which the 

3 individual was previously admitted to practice.’’. 

4 SEC. 8. TECHNICAL ASSISTANCE REPORTS. 

5 (a) USE.—Section 1312 of the National Flood Insur6 ance Act of 1968 (42 U.S.C. 4019), as amended by the pre7 ceding provisions of this Act, is further amended by adding 

8 at the end the following new subsection: 

9 ‘‘(e) USE OF TECHNICAL ASSISTANCE REPORTS.— 

10 When adjusting claims for any damage to or loss of prop11 erty which is covered by flood insurance made available 

12 under this title, the Administrator may rely upon technical 

13 assistance reports, as such term is defined in section 1312A, 

14 only if such reports are final and are prepared in compli15 ance with applicable State and Federal laws regarding pro16 fessional licensure and conduct.’’. 

17 (b) DISCLOSURE.—The National Flood Insurance Act 

18 of 1968 is amended by inserting after section 1312 (42 

19 U.S.C. 4019) the following new section: 

20 ‘‘SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE RE21 PORTS. 

22 ‘‘(a) IN GENERAL.—Notwithstanding section 552a of 

23 title 5, United States Code, upon request by a policyholder, 

24 the Administrator shall provide a true, complete, and 

25 unredacted copy of any technical assistance report that the 


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1 Administrator relied upon in adjusting and paying for any 

2 damage to or loss of property insured by the policyholder 

3 and covered by flood insurance made available under this 

4 title. Such disclosures shall be in addition to any other right 

5 of disclosure otherwise made available pursuant such sec6 tion 552a or any other provision of law. 

7 ‘‘(b) DIRECT DISCLOSURE BY WRITE YOUR OWN COM8 PANIES AND DIRECT SERVICING AGENTS.—A Write Your 

9 Own company or direct servicing agent in possession of a 

10 technical assistance report subject to disclosure under sub11 section (a) may disclose such technical assistance report 

12 without further review or approval by the Administrator. 

13 ‘‘(c) DEFINITIONS.—For purposes of this section, the 

14 following definitions shall apply: 

15 ‘‘(1) POLICYHOLDER.—The term ‘policyholder’ 

16 means a person or persons shown as an insured on 

17 the declarations page of a policy for flood insurance 

18 coverage sold pursuant to this title. 

19 ‘‘(2) TECHNICAL ASSISTANCE REPORT.—The 

20 term ‘technical assistance report’ means a report cre21 ated for the purpose of furnishing technical assistance 

22 to an insurance claims adjuster assigned by the Na23 tional Flood Insurance Program, including by engi24 neers, surveyors, salvors, architects, and certified pub25 lic accounts.’’. 


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1 SEC. 9. IMPROVED DISCLOSURE REQUIREMENT FOR 

2 STANDARD FLOOD INSURANCE POLICIES. 

3 (a) IN GENERAL.—Section 100234 of the Biggert4 Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 

5 4013a) is amended by adding at the end the following new 

6 subsections: 

7 ‘‘(c) DISCLOSURE OF COVERAGE.— 

8 ‘‘(1) DISCLOSURE SHEET.—Each policy under 

9 the National Flood Insurance Program shall include 

10 a standard disclosure sheet that is produced by the 

11 Administrator that sets forth, in plain language— 

12 ‘‘(A) the definition of the term ‘flood’ for 

13 purposes of coverage under the policy; 

14 ‘‘(B) a description of what type of flood 

15 forces are necessary so that losses from an event 

16 are covered under the policy, including overflow 

17 of inland or tidal waves, unusual and rapid ac18 cumulation or runoff of a surface any source, 

19 and mudflow; 

20 ‘‘(C) a statement acknowledging that a 

21 standard flood insurance policy does not cover 

22 basement improvements, such as finished walls, 

23 floors, and ceilings, or personal property kept in 

24 a basement; 

25 ‘‘(D) a statement acknowledging a standard 

26 flood insurance policy does not include coverage 


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1 for personal property, but such coverage may be 

2 purchased, for some personal property contained 

3 in a basement, as well as personal belongings 

4 contained elsewhere in the dwelling; 

5 ‘‘(E) a statement of the other types and 

6 characteristics of losses that are not covered 

7 under the policy; 

8 ‘‘(F) a statement that the disclosure sheet 

9 provides general information about the policy10 holder’s standard flood insurance policy; 

11 ‘‘(G) a statement that the standard flood in12 surance policy, together with the endorsements 

13 and declarations page, make up the official con14 tract and are controlling in the event that there 

15 is any difference between the information on the 

16 disclosure sheet and the information in the pol17 icy; 

18 ‘‘(H) a statement that, if the policyholder 

19 has any questions regarding information in the 

20 disclosure sheet or policy, the policyholder should 

21 contact the entity selling the policy on behalf of 

22 the Program, together with contact information 

23 sufficient to allow the policyholder to contact 

24 such entity; and 


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1 ‘‘(I) any other information that the Admin2 istrator determines will be helpful to policyholder 

3 in understanding flood insurance coverage. 

4 ‘‘(2) ACKNOWLEDGMENT SHEET.—Each policy 

5 application under the National Flood Insurance Pro6 gram shall include an acknowledgment sheet on which 

7 the policyholder shall affirmatively— 

8 ‘‘(A) acknowledge that the policyholder re9 ceived the disclosure sheet required under para10 graph (1); 

11 ‘‘(B) accept or decline coverage for personal 

12 property; 

13 ‘‘(C) accept or decline other optional cov14 erage that may be available; 

15 ‘‘(D) acknowledge the policyholder’s under16 standing that the standard flood insurance pol17 icy, together with the endorsements and declara18 tions page, make up the official contract and are 

19 controlling in the event that there is any dif20 ference between the information on the acknowl21 edgment sheet and the information in the policy; 

22 and 

23 ‘‘(E) acknowledge that the policyholder has 

24 been provided and has reviewed a summary, 

25 which may be the policy declarations page, of the 


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1 total cost, amount and extent of insurance cov2 erage provided under the policy. 

3 ‘‘(d) RULE OF CONSTRUCTION.—This section shall not 

4 be construed to void or alter the coverage terms of the under5 lying standard flood insurance policy and the cor6 responding endorsements. In the event that the customer 

7 does not affirmatively acknowledge the requirements under 

8 subsection (c)(2), a Write Your Own company may still 

9 issue the policy on behalf of the National Flood Insurance 

10 Program under such terms.’’. 

11 (b) REPEALS.—Sections 202 and 203 of the Bunning12 Bereuter-Blumenauer Flood Insurance Reform Act of 2004 

13 (42 U.S.C. 4011 note) are hereby repealed. 

14 SEC. 10. RESERVE FUND AMOUNTS. 

15 Section 1310 of the National Flood Insurance Act of 

16 1968 (42 U.S.C. 4017) is amended by adding at the end 

17 the following new subsection: 

18 ‘‘(g) CREDITING OF RESERVE FUND AMOUNTS.— 

19 Funds collected pursuant to section 1310A may be credited 

20 to the Fund under this section to be available for the pur21 pose described in subsection (d)(1).’’. 


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1 SEC. 11. SUFFICIENT STAFFING FOR OFFICE OF FLOOD IN2 SURANCE ADVOCATE. 

3 (a) IN GENERAL.—Section 24 of the Homeowner Flood 

4 Insurance Affordability Act of 2014 (42 U.S.C. 4033) is 

5 amended by adding at the end the following new subsection: 

6 ‘‘(c) STAFF.—The Administrator shall ensure that the 

7 Flood Insurance Advocate has sufficient staff to carry out 

8 all of the duties and responsibilities of the Advocate under 

9 this section.’’. 

10 (b) TIMING.—The Administrator of the Federal Emer11 gency Management Agency shall take such actions as may 

12 be necessary to provide for full compliance with section 

13 24(c) of the Homeowner Flood Insurance Affordability Act 

14 of 2014, as added by the amendment made by subsection 

15 (a) of this section, not later than the expiration of the 180- 

16 day period beginning on the date of the enactment of this 

17 Act. 

18 SEC. 12. FEDERAL FLOOD INSURANCE ADVISORY COM19 MITTEE. 

20 Section 1318 of the National Flood Insurance Act of 

21 1968 (42 U.S.C. 4025) is amended to read as follows: 

22 ‘‘SEC. 1318. FEDERAL FLOOD INSURANCE ADVISORY COM23 MITTEE. 

24 ‘‘(a) ESTABLISHMENT.—There is established an advi25 sory committee to be known as the Federal Flood Insurance 


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1 Advisory Committee (in this section referred to as the ‘Com2 mittee’). 

3 ‘‘(b) MEMBERSHIP.— 

4 ‘‘(1) MEMBERS.—The Committee shall consist 

5 of— 

6 ‘‘(A) the Administrator of the Federal 

7 Emergency Management Agency (in this section 

8 referred to as the ‘Administrator’), or the des9 ignee thereof; and 

10 ‘‘(B) additional members appointed by the 

11 Administrator or the designee of the Adminis12 trator, who shall include— 

13 ‘‘(i) three representatives of Write Your 

14 Own companies; 

15 ‘‘(ii) one individual who served in the 

16 past, or is currently serving, as an insur17 ance regulator of a State, the District of Co18 lumbia, the Commonwealth of Puerto Rico, 

19 Guam, the Commonwealth of the Northern 

20 Mariana Islands, the Virgin Islands, Amer21 ican Samoa, or any federally-recognized In22 dian tribe; 

23 ‘‘(iii) one representative of the finan24 cial or insurance sectors who is involved in 

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1 ience bonds, and other insurance-linked se2 curities; 

3 ‘‘(iv) one actuary with demonstrated 

4 high-level knowledge of catastrophic risk in5 surance; 

6 ‘‘(v) two insurance agents or brokers 

7 with demonstrated experience with the sale 

8 of flood insurance under the National Flood 

9 Insurance Program, one of whom shall have 

10 demonstrated expertise in the challenges in 

11 insuring low-income communities; 

12 ‘‘(vi) one insurance claims specialist; 

13 ‘‘(vii) one representative of a recog14 nized consumer advocacy organization; and 

15 ‘‘(viii) one representative from an aca16 demic institution who has demonstrated ex17 pertise in insurance. 

18 ‘‘(2) QUALIFICATIONS.—In appointing members 

19 under paragraph (1)(C), the Administrator shall, to 

20 the maximum extent practicable, ensure the member21 ship of the Committee has a balance of members re22 flecting geographic diversity, including representation 

23 from areas inland or with coastline identified by the 

24 Administrator as at high risk for flooding or as areas 

25 having special flood hazards. 


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1 ‘‘(c) DUTIES.—The Administrator shall submit, and 

2 the Committee shall review and make recommendations on, 

3 matters related to the insurance aspects of the National 

4 Flood Insurance Program, including ratemaking, tech5 nology to administer insurance, risk assessment, actuarial 

6 practices, claims practices, sales and insurance delivery, 

7 compensation and allowances, the public-private partner8 ship under the Write Your Own arrangement, general best 

9 insurance practices, and any significant changes proposed 

10 to be made regarding the operation of the National Flood 

11 Insurance Program. 

12 ‘‘(d) CHAIRPERSON.—The members of the Committee 

13 shall elect one member to serve as the chairperson of the 

14 Committee (in this section referred to as the ‘Chairperson’). 

15 ‘‘(e) COMPENSATION.—Members of the Committee shall 

16 receive no additional compensation by reason of their serv17 ice on the Committee. Members may be reimbursed by the 

18 Federal Government for travel expenses, including per diem 

19 in lieu of subsistence, at rates consistent with rates author20 ized for employees of Federal agencies under subchapter 1 

21 of chapter 57 of title 5, United States Code, while away 

22 from home or regular places of business in performance of 

23 service for the Committee. 

24 ‘‘(f) MEETINGS AND ACTIONS.— 


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1 ‘‘(1) IN GENERAL.—The Committee shall meet 

2 not less frequently than twice each year at the request 

3 of the Chairperson or a majority of its members, and 

4 may take action by a vote of the majority of the mem5 bers in accordance with the Committee’s charter. 

6 ‘‘(2) INITIAL MEETING.—The Administrator, or 

7 a person designated by the Administrator, shall re8 quest and coordinate the initial meeting of the Com9 mittee. 

10 ‘‘(g) TRANSPARENCY; FACA.—To the greatest extent 

11 possible, the Committee shall operate in a transparent man12 ner that adheres to the requirements of the Federal Advisory 

13 Committee Act, with the exception that the Committee shall 

14 be permitted to freely communicate both during and be15 tween meetings under paragraph (f) in a confidential man16 ner to discuss non-public information regarding the oper17 ations of the National Flood Insurance Program and other 

18 sensitive and non-public issues. If such communication oc19 curs, the Committee shall, to the greatest extent possible, 

20 report a summary of such discussions in an appropriate 

21 public manner. 

22 ‘‘(h) STAFF OF FEMA.—Upon the request of the 

23 Chairperson, the Administrator may detail, on a non24 reimbursable basis, personnel of the Federal Emergency 


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1 Management Agency to assist the Committee in carrying 

2 out its duties. 

3 ‘‘(i) POWERS.—In carrying out this section, the Com4 mittee may hold hearings, receive evidence and assistance, 

5 provide information, and conduct research, as it considers 

6 appropriate. 

7 ‘‘(j) REPORTS TO CONGRESS.—The Administrator, on 

8 an annual basis, shall report to the Committee on Financial 

9 Services of the House of Representatives, the Committee on 

10 Banking, Housing, and Urban Affairs of the Senate, and 

11 the Office of Management and Budget on— 

12 ‘‘(1) the recommendations made by the Com13 mittee; 

14 ‘‘(2) actions taken by the Federal Emergency 

15 Management Agency to address such recommenda16 tions to improve the insurance aspects of the national 

17 flood insurance program; and 

18 ‘‘(3) any recommendations made by the Com19 mittee that have been deferred or not acted upon, to20 gether with an explanatory statement. 

21 ‘‘(k) RULE OF CONSTRUCTION.—This section shall not 

22 be construed to eliminate or alter any requirement on the 

23 Administrator associated with the notification or consulta24 tion of specified individuals or groups of individuals as re25 quired elsewhere by statute.’’. 


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1 SEC. 13. INTERAGENCY GUIDANCE ON COMPLIANCE. 

2 The Federal entities for lending regulation (as such 

3 term is defined in section 3(a) of the Flood Disaster Protec4 tion Act of 1973 (42 U.S.C. 4003(a))), in consultation with 

5 the Administrator of the Federal Emergency Management 

6 Agency, shall update and reissue the document entitled 

7 ‘‘Interagency Questions and Answers Regarding Flood In8 surance’’ not later than the expiration of the 12-month pe9 riod beginning on the date of the enactment of this Act and 

10 not less frequently than biennially thereafter. 

11 SEC. 14. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES. 

12 The Comptroller General of the United States shall 

13 conduct a study of the policies and practices for adjustment 

14 of claims for losses under flood insurance coverage made 

15 available under the National Flood Insurance Act, which 

16 shall include— 

17 (1) a comparison of such policies and practices 

18 with the policies and practices for adjustment of 

19 claims for losses under other insurance coverage; 

20 (2) an assessment of the quality of the adjust21 ments conducted and the effects of such policies and 

22 practices on such quality; 

23 (3) identification of any incentives under such 

24 policies and practices that affect the speed with which 

25 such adjustments are conducted; and 


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1 (4) identification of the affects of such policies 

2 and practices on insureds submitting such claims for 

3 losses. 

4 Not later than the expiration of the 18-month period begin5 ning on the date of the enactment of this Act, the Comp6 troller General shall submit a report to the Committee on 

7 Financial Services of the House of Representatives and the 

8 Committee on Banking, Housing, and Urban Affairs of the 

9 Senate regarding the findings and conclusions of the study 

10 conducted pursuant to this section. 

11 SEC. 15. GAO STUDY OF FLOOD INSURANCE COVERAGE 

12 TREATMENT OF EARTH MOVEMENT. 

13 The Comptroller General of the United States shall 

14 conduct a study of the treatment, under flood insurance cov15 erage made available under the National Flood Insurance 

16 Act, of earth movement and subsidence, including earth 

17 movement and subsidence caused by flooding, which shall 

18 include— 

19 (1) identification and analysis of the effects of 

20 such treatment on the National Flood Insurance Pro21 gram and insureds under the program; 

22 (2) an assessment of the availability and afford23 ability of coverage in the private insurance market 

24 for earth movement and subsidence caused by flood25 ing; 


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1 (3) an assessment of the effects on the National 

2 Flood Insurance Program of covering earth movement 

3 and subsidence caused by flooding; and 

4 (4) a projection of the increased premiums that 

5 would be required to make coverage for earth move6 ment losses actuarially sound and not fiscally detri7 mental to the continuation of the National Flood In8 surance Program. 

9 Not later than the expiration of the 18-month period begin10 ning on the date of the enactment of this Act, the Comp11 troller General shall submit a report to the Committee on 

12 Financial Services of the House of Representatives and the 

13 Committee on Banking, Housing, and Urban Affairs of the 

14 Senate regarding the findings and conclusions of the study 

15 conducted pursuant to this section. 

16 SEC. 16. DEFINITIONS. 

17 (a) NATIONAL FLOOD INSURANCE ACT OF 1968.—Sub18 section (a) of section 1370 of the National Flood Insurance 

19 Act of 1968 (42 U.S.C. 4121(a)) is amended— 

20 (1) in paragraph (14), by striking ‘‘and’’ at the 

21 end; 

22 (2) in paragraph (15), by striking the period at 

23 the end and inserting a semicolon; and 

24 (3) by adding at the end the following new para25 graphs: 


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1 ‘‘(16) the term ‘Write Your Own Program’ 

2 means the program under which the Federal Emer3 gency Management Agency enters into a standard ar4 rangement with private property insurance compa5 nies to sell contracts for flood insurance coverage 

6 under this title under their own business lines of in7 surance, and to adjust and pay claims arising under 

8 such contracts; and 

9 ‘‘(17) the term ‘Write Your Own company’ 

10 means a private property insurance company that 

11 participates in the Write Your Own Program.’’. 

12 (b) BIGGERT-WATERS FLOOD INSURANCE REFORM

13 ACT OF 2012.—Subsection (a) of section 100202 of the 

14 Biggert-Waters Flood Insurance Reform Act of 2012 (42 

15 U.S.C. 4004(a)) is amended by striking paragraph (5) and 

16 inserting the following new paragraph: 

17 ‘‘(5) WRITE YOUR OWN.—The terms ‘Write Your 

18 Own Program’ and ‘Write Your Own company’ have 

19 the meanings given such terms in section 1370(a) of 

20 the National Flood Insurance Act of 1968 (42 U.S.C. 

21 4121(a)).’’. 


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Union Calendar No. 209 

116TH CONGRESS 

1ST SESSION H. R. 3111 

[Report No. 116–261] 

A BILL 

To make administrative reforms to the National 

gram fraud and abuse, and for other purposes. and accuracy and protect the taxpayer from proFlood Insurance Program to increase fairness 

OCTOBER 28, 2019 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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