I 

116TH CONGRESS 

1ST SESSION H. R. 3111 

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 

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. 

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 Administrative Reform Act of 2019’’. 


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1 SEC. 2. PILOT PROGRAM FOR PROPERTIES WITH PRE2 EXISTING CONDITIONS. 

3 Section 1311 of the National Flood Insurance Act of 

4 1968 (42 U.S.C. 4018) is amended by adding at the end 

5 the following new subsection: 

6 ‘‘(c) PILOT PROGRAM FOR INVESTIGATION OF PRE7 EXISTING STRUCTURAL CONDITIONS.— 

8 ‘‘(1) VOLUNTARY PROGRAM.—The Adminis9 trator shall carry out a pilot program under this 

10 subsection to provide for companies participating in 

11 the Write Your Own Program (as such term is de12 fined in section 1370(a) (42 U.S.C. 4121(a))) to in13 vestigate preexisting structural conditions of insured 

14 properties and potentially insured properties that 

15 could result in the denial of a claim under a policy 

16 for flood insurance coverage under this title in the 

17 event of a flood loss to such property. Participation 

18 in the pilot program shall be voluntary on the part 

19 of Write Your Own companies. 

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

21 the pilot program under this subsection, a Write 

22 Your Own company participating in the program 

23 shall— 

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

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1 gram that, upon the request of the policyholder, 

2 the company shall provide for— 

3 ‘‘(i) an investigation of the property 

4 covered by such policy, using common 

5 methods, to determine whether preexisting 

6 structural conditions are present that could 

7 result in the denial of a claim under such 

8 policy for flood losses; and 

9 ‘‘(ii) if such investigation is not deter10 minative, an on-site inspection of the prop11 erty to determine whether such preexisting 

12 structural conditions are present; 

13 ‘‘(B) upon completion of an investigation 

14 or inspection pursuant to subparagraph (A) 

15 that determines that such a preexisting struc16 tural condition is present or absent, submit a 

17 report to the policyholder and Administrator de18 scribing the condition; and 

19 ‘‘(C) impose a surcharge on each policy de20 scribed in subparagraph (A) in such amount 

21 that the Administrator determines is appro22 priate to cover the costs of investigations and 

23 inspections performed pursuant to such policies 

24 and reimburse Write Your Own companies parVerDate Sep 11 2014 19:01 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3111.IH H3111

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1 ticipating in the program under this subsection 

2 for such costs. 

3 ‘‘(3) INTERIM REPORT.—Not later than Decem4 ber 31, 2023, the Administrator shall submit a re5 port to the Committee on Financial Services of the 

6 House of Representatives and the Committee on 

7 Banking, Housing, and Urban Affairs of the Senate 

8 describing the operation of the pilot program to that 

9 date. 

10 ‘‘(4) SUNSET.—The Administrator may not 

11 provide any policy for flood insurance described in 

12 paragraph (2)(A) after December 31, 2024. 

13 ‘‘(5) FINAL REPORT.—Not later than March 

14 31, 2025, the Administrator shall submit a final re15 port regarding the pilot program under this section 

16 to the Committee on Financial Services of the House 

17 of Representatives and the Committee on Banking, 

18 Housing, and Urban Affairs of the Senate. The re19 port shall include any findings and recommendations 

20 of the Administrator regarding the pilot program.’’. 


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1 SEC. 3. PENALTIES FOR FRAUD AND FALSE STATEMENTS 

2 IN THE NATIONAL FLOOD INSURANCE PRO3 GRAM. 

4 Part C of chapter 2 of the National Flood Insurance 

5 Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add6 ing at the end the following new section: 

7 ‘‘SEC. 1349. PENALTIES FOR FRAUD AND FALSE STATE8 MENTS IN THE NATIONAL FLOOD INSURANCE 

9 PROGRAM. 

10 ‘‘(a) PROHIBITED ACTS.—A person shall not know11 ingly make a false, fictitious, or fraudulent statement, pro12 duction, or submission in connection with the proving or 

13 adjusting of a claim for flood insurance coverage made 

14 available under this Act. Such prohibited acts include— 

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

16 claims adjustment report or technical assistance re17 port used to support a claim determination; 

18 ‘‘(2) knowingly making any materially false, fic19 titious, or fraudulent statement or representation in 

20 an engineering report, claims adjustment report, or 

21 technical assistance report to support a claim deter22 mination that results in a wrongful denial or sub23 stantial payment error of flood insurance coverage; 

24 and 


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

2 fictitious, or fraudulent claim that results in wrong3 ful payment of flood insurance coverage. 

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

5 term ‘knowingly’ means having actual awareness of the 

6 prohibitions under this part and acting deliberately in vio7 lation of such prohibitions. 

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

9 action being taken related to this section, all administra10 tive remedies shall be exhausted. 

11 ‘‘(d) RULE OF CONSTRUCTION.—This section shall 

12 not be construed— 

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

14 bringing action against a company or individual 

15 under applicable statutes, including the False Claims 

16 Act; and 

17 ‘‘(2) as creating any action, private right of ac18 tion, or remedy not otherwise provided by this title 

19 or under Federal law. 

20 ‘‘(3) STATE ACTION.—Any person found to 

21 have violated subsection (a) shall be referred to the 

22 appropriate and relevant State licensing agency by 

23 the Attorney General.’’. 


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1 SEC. 4. ENHANCED POLICYHOLDER APPEALS PROCESS 

2 RIGHTS. 

3 (a) ESTABLISHMENT.—Part C of chapter II of the 

4 National Flood Insurance Act of 1968 (42 U.S.C. 4081 

5 et seq.), as amended by the preceding provisions of this 

6 Act, is further amended by adding at the end the following 

7 new section: 

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

9 INSURANCE COVERAGE. 

10 ‘‘(a) IN GENERAL.—The Administrator shall estab11 lish an appeals process to enable holders of a flood insur12 ance policy provided under this title to appeal decisions, 

13 with respect to the disallowance, in whole or in part, of 

14 any claims for losses covered by flood insurance. Such ap15 peals shall be limited to the claim or portion of the claim 

16 disallowed. 

17 ‘‘(b) APPEAL DECISION.—Upon a decision in an ap18 peal under subsection (a), the Administrator shall provide 

19 the policyholder with a written appeal decision. The appeal 

20 decision shall explain the Administrator’s determination to 

21 uphold, modify, or overturn the decision. The Adminis22 trator may direct the Write Your Own company to take 

23 action necessary to resolve the appeal, to include re-inspec24 tion, re-adjustment, or payment, as appropriate. 

25 ‘‘(c) DEADLINE FOR APPEALS DECISION.—The Ad26 ministrator shall issue an appeals decision pursuant to 


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1 subsection (b) not later than the expiration of the 120- 

2 day period beginning upon the day on which the Adminis3 trator acknowledges receipt of a request by the policy4 holder to pursue an appeal of the initial determination re5 garding approval, disapproval, or amount of payment by 

6 the Administrator. In cases where extraordinary cir7 cumstances, as established by regulation, are dem8 onstrated, the 120-day period may be extended by addi9 tional successive periods of 30 days. 

10 ‘‘(d) ADMINISTRATIVE REMEDY.—A policyholder 

11 shall exhaust all administrative remedies, including sub12 mission of disputed claims to appeal under subsection (a), 

13 prior to commencing legal action on a disputed claim. 

14 ‘‘(e) RULES OF CONSTRUCTION.—This section shall 

15 not be construed as— 

16 ‘‘(1) making the Federal Emergency Manage17 ment Agency or the Administrator a party to the 

18 flood insurance contract; or 

19 ‘‘(2) creating any action or remedy not other20 wise provided by this title. 

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

22 not be construed to prevent a policyholder from bringing 

23 legal action against the Federal Emergency Management 

24 Agency or a Write Your Own company following the exVerDate Sep 11 2014 19:01 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3111.IH H3111

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1 haustion of all administrative remedies and pursuant to 

2 applicable statute.’’. 

3 (b) MAINTENANCE OF LITIGATION RIGHTS.—Section 

4 1341 of the National Flood Insurance Act of 1968 (42 

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

6 the end the following: ‘‘For purposes of this section, the 

7 time from which the Administrator has acknowledged re8 ceipt of a request by the policyholder to pursue an appeal 

9 of the initial determination regarding approval, dis10 approval, or amount of payment by the Administrator 

11 until the Administrator mails a final determination of such 

12 appeal shall not be considered towards the one year stat13 ute of limitation under this Act. However, this section 

14 shall not be construed as creating any action or remedy 

15 not otherwise provided by this title.’’. 

16 (c) REPEAL.—Section 205 of the Bunning-Blu17 menauer-Bereuter Flood Insurance Reform Act of 2004 

18 (42 U.S.C. 4011 note) is hereby repealed. 

19 SEC. 5. DEADLINE FOR APPROVAL OF CLAIMS. 

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

21 Flood Insurance Act of 1968 (42 U.S.C. 4019) is amend22 ed— 

23 (1) in subsection (a), by striking ‘‘The Adminis24 trator’’ and inserting ‘‘Subject to other provisions of 

25 this section, the Administrator’’; and 


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1 (2) by adding at the end the following new sub2 section: 

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

4 ‘‘(1) IN GENERAL.—The Administrator shall 

5 provide that, in the case of any claim for damage to 

6 or loss of property under flood insurance coverage 

7 made available under this title, an initial determina8 tion regarding approval of a claim for payment or 

9 disapproval of the claim be made, and notification of 

10 such determination be provided to the insured mak11 ing such claim, not later than the expiration of the 

12 120-day period (as such period may be extended 

13 pursuant to paragraph (2)) beginning upon the day 

14 on which the policyholder submits a signed proof of 

15 loss detailing the damage and amount of the loss. 

16 Payment of approved claims shall be made as soon 

17 as possible after such approval. 

18 ‘‘(2) EXTENSION OF DEADLINE.—The Adminis19 trator shall— 

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

21 paragraph (1) may be extended by additional 

22 successive periods of 30 days in cases where ex23 traordinary circumstances are demonstrated; 

24 and 


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

2 demonstrating such extraordinary cir3 cumstances.’’. 

4 (b) APPLICABILITY.—The amendments made by sub5 section (a) shall apply to any claim under flood insurance 

6 coverage made available under the National Flood Insur7 ance Act of 1968 (42 U.S.C. 4001 et seq.) pending on 

8 the date of the enactment of this Act and any claims made 

9 after such date of enactment. 

10 SEC. 6. LITIGATION PROCESS OVERSIGHT AND REFORM. 

11 (a) IN GENERAL.—Part C of chapter II of the Na12 tional Flood Insurance Act of 1968 (42 U.S.C. 4081 et 

13 seq.), as amended by the preceding provisions of this Act, 

14 is further amended by adding at the end the following new 

15 section: 

16 ‘‘SEC. 1351. OVERSIGHT OF LITIGATION. 

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

18 and oversee litigation conducted by Write Your Own com19 panies arising under contracts for flood insurance sold 

20 pursuant to this title, to ensure that— 

21 ‘‘(1) litigation expenses are reasonable, appro22 priate, and cost-effective; and 

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

24 guidance and procedures established by the Adminis25 trator regarding the conduct of litigation. 


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1 ‘‘(b) DENIAL OF REIMBURSEMENT FOR EX2 PENSES.—The Administrator may deny reimbursement 

3 for litigation expenses that are determined to be unreason4 able, excessive, contrary to guidance issued by the Admin5 istrator, or outside the scope of any arrangement entered 

6 into with a Write Your Own company. 

7 ‘‘(c) JOINT DEFENSE.— 

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

9 Write Your Own companies may enter into, and op10 erate under, a joint defense agreement for any claim 

11 or lawsuit, or multiple claims or lawsuits, arising 

12 under a contract of flood insurance. 

13 ‘‘(2) FREE FLOW OF INFORMATION.—Under 

14 such joint defense agreement, there may be the free 

15 flow of information between the Write Your Own 

16 companies, the Administrator, the United States De17 partment of Justice, and legal counsel for the Write 

18 Your Own companies for the purpose of litigation 

19 coordination and to allow the Administrator to per20 form oversight responsibility of such litigation. 

21 ‘‘(3) ARRANGEMENT.—Such joint defense 

22 agreement may be included in the arrangement be23 tween the Administrator and the Write Your Own 

24 companies. 


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

2 issue rules or regulations or provide such formal 

3 guidance as the Administrator considers necessary 

4 and appropriate in order to further such joint de5 fense agreement with the Write Your Own compa6 nies.’’. 

7 (b) IMPLEMENTATION.—The Administrator of the 

8 Federal Emergency Management Agency shall initiate 

9 compliance with section 1351(c) of the National Flood In10 surance Act of 1968, as added by the amendment made 

11 by subsection (a) of this section, not later than the expira12 tion of the 12-month period beginning on the date of the 

13 enactment of this Act. 

14 SEC. 7. PROHIBITION ON HIRING DISBARRED ATTORNEYS. 

15 Part C of chapter II of the National Flood Insurance 

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

17 preceding provisions of this Act, is further amended by 

18 adding at the end the following new section: 

19 ‘‘SEC. 1352. PROHIBITION ON HIRING DISBARRED ATTOR20 NEYS. 

21 ‘‘The Administrator may not at any time newly em22 ploy in connection with the flood insurance program under 

23 this title any attorney who has been suspended or dis24 barred by any court, bar, or Federal or State agency to 

25 which the individual was previously admitted to practice.’’. 


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1 SEC. 8. TECHNICAL ASSISTANCE REPORTS. 

2 (a) USE.—Section 1312 of the National Flood Insur3 ance Act of 1968 (42 U.S.C. 4019), as amended by the 

4 preceding provisions of this Act, is further amended by 

5 adding at the end the following new subsection: 

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

7 When adjusting claims for any damage to or loss of prop8 erty which is covered by flood insurance made available 

9 under this title, the Administrator may rely upon technical 

10 assistance reports, as such term is defined in section 

11 1312A, only if such reports are final and are prepared 

12 in compliance with applicable State and Federal laws re13 garding professional licensure and conduct.’’. 

14 (b) DISCLOSURE.—The National Flood Insurance 

15 Act of 1968 is amended by inserting after section 1312 

16 (42 U.S.C. 4019) the following new section: 

17 ‘‘SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE RE18 PORTS. 

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

20 title 5, United States Code, upon request by a policy21 holder, the Administrator shall provide a true, complete, 

22 and unredacted copy of any technical assistance report 

23 that the Administrator relied upon in adjusting and pay24 ing for any damage to or loss of property insured by the 

25 policyholder and covered by flood insurance made available 

26 under this title. Such disclosures shall be in addition to 


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1 any other right of disclosure otherwise made available pur2 suant such section 552a or any other provision of law. 

3 ‘‘(b) DIRECT DISCLOSURE BY WRITE YOUR OWN

4 COMPANIES AND DIRECT SERVICING AGENTS.—A Write 

5 Your Own company or direct servicing agent in possession 

6 of a technical assistance report subject to disclosure under 

7 subsection (a) may disclose such technical assistance re8 port without further review or approval by the Adminis9 trator. 

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

11 following definitions shall apply: 

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

13 means a person or persons shown as an insured on 

14 the declarations page of a policy for flood insurance 

15 coverage sold pursuant to this title. 

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

17 term ‘technical assistance report’ means a report 

18 created for the purpose of furnishing technical as19 sistance to an insurance claims adjuster assigned by 

20 the National Flood Insurance Program, including by 

21 engineers, surveyors, salvors, architects, and cer22 tified public 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 

16 event are covered under the policy, including 

17 overflow of inland or tidal waves, unusual and 

18 rapid accumulation or runoff of a surface any 

19 source, 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 stand26 ard flood insurance policy does not include covVerDate Sep 11 2014 19:01 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H3111.IH H3111

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1 erage for personal property, but such coverage 

2 may be purchased, for some personal property 

3 contained in a basement, as well as personal be4 longings 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 

12 insurance policy, together with the endorse13 ments and declarations page, make up the offi14 cial contract and are controlling in the event 

15 that there is any difference between the infor16 mation on the disclosure sheet and the informa17 tion in the policy; 

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

19 has any questions regarding information in the 

20 disclosure sheet or policy, the policyholder 

21 should contact the entity selling the policy on 

22 behalf of the Program, together with contact in23 formation sufficient to allow the policyholder to 

24 contact such entity; and 


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1 ‘‘(I) any other information that the Admin2 istrator determines will be helpful to policy3 holder in understanding flood insurance cov4 erage. 

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

6 application under the National Flood Insurance Pro7 gram shall include an acknowledgment sheet on 

8 which the policyholder shall affirmatively— 

9 ‘‘(A) acknowledge that the policyholder re10 ceived the disclosure sheet required under para11 graph (1); 

12 ‘‘(B) accept or decline coverage for per13 sonal property; 

14 ‘‘(C) accept or decline other optional cov15 erage that may be available; 

16 ‘‘(D) acknowledge the policyholder’s under17 standing that the standard flood insurance pol18 icy, together with the endorsements and dec19 larations page, make up the official contract 

20 and are controlling in the event that there is 

21 any difference between the information on the 

22 acknowledgment sheet and the information in 

23 the policy; and 

24 ‘‘(E) acknowledge that the policyholder has 

25 been provided and has reviewed a summary, 


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1 which may be the policy declarations page, of 

2 the total cost, amount and extent of insurance 

3 coverage provided under the policy. 

4 ‘‘(d) RULE OF CONSTRUCTION.—This section shall 

5 not be construed to void or alter the coverage terms of 

6 the underlying standard flood insurance policy and the 

7 corresponding endorsements. In the event that the cus8 tomer does not affirmatively acknowledge the require9 ments under subsection (c)(2), a Write Your Own com10 pany may still issue the policy on behalf of the National 

11 Flood Insurance Program under such terms.’’. 

12 (b) REPEALS.—Sections 202 and 203 of the Bun13 ning-Bereuter-Blumenauer Flood Insurance Reform Act 

14 of 2004 (42 U.S.C. 4011 note) is hereby repealed. 

15 SEC. 10. RESERVE FUND AMOUNTS. 

16 Section 1310 of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4017) is amended by adding at the end 

18 the following new subsection: 

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

20 Funds collected pursuant to section 1310A may be cred21 ited to the Fund under this section to be available for the 

22 purpose 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 

4 Flood Insurance Affordability Act of 2014 (42 U.S.C. 

5 4033) is amended by adding at the end the following new 

6 subsection: 

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

8 the Flood Insurance Advocate has sufficient staff to carry 

9 out all of the duties and responsibilities of the Advocate 

10 under this section.’’. 

11 (b) TIMING.—The Administrator of the Federal 

12 Emergency Management Agency shall take such actions 

13 as may be necessary to provide for full compliance with 

14 section 24(c) of the Homeowner Flood Insurance Afford15 ability Act of 2014, as added by the amendment made by 

16 subsection (a) of this section, not later than the expiration 

17 of the 180-day period beginning on the date of the enact18 ment of this Act. 

19 SEC. 12. FEDERAL FLOOD INSURANCE ADVISORY COM20 MITTEE. 

21 Section 1318 of the National Flood Insurance Act of 

22 1968 (42 U.S.C. 4025) is amended to read as follows: 

23 ‘‘SEC. 1318. FEDERAL FLOOD INSURANCE ADVISORY COM24 MITTEE. 

25 ‘‘(a) ESTABLISHMENT.—There is established an advi26 sory committee to be known as the Federal Flood InsurVerDate Sep 11 2014 19:01 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H3111.IH H3111

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1 ance Advisory Committee (in this section referred to as 

2 the ‘Committee’). 

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 

14 Your 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 

18 Columbia, the Commonwealth of Puerto 

19 Rico, Guam, the Commonwealth of the 

20 Northern Mariana Islands, the Virgin Is21 lands, American Samoa, or any federally22 recognized Indian tribe; 

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

25 risk transfers, including reinsurance, resilVerDate Sep 11 2014 19:01 Jun 07, 2019 Jkt 089200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H3111.IH H3111

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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 

5 insurance; 

6 ‘‘(v) two insurance agents or brokers 

7 with demonstrated experience with the sale 

8 of flood insurance under the National 

9 Flood Insurance Program, one of whom 

10 shall have demonstrated expertise in the 

11 challenges in insuring low-income commu12 nities; 

13 ‘‘(vi) one insurance claims specialist; 

14 ‘‘(vii) one representative of a recog15 nized consumer advocacy organization; and 

16 ‘‘(viii) one representative from an aca17 demic institution who has demonstrated 

18 expertise in insurance. 

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

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

21 the maximum extent practicable, ensure the mem22 bership of the Committee has a balance of members 

23 reflecting geographic diversity, including representa24 tion from areas inland or with coastline identified by 


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1 the Administrator as at high risk for flooding or as 

2 areas having special flood hazards. 

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

4 the Committee shall review and make recommendations 

5 on, matters related to the insurance aspects of the Na6 tional Flood Insurance Program, including ratemaking, 

7 technology to administer insurance, risk assessment, actu8 arial practices, claims practices, sales and insurance deliv9 ery, compensation and allowances, the public-private part10 nership under the Write Your Own arrangement, general 

11 best insurance practices, and any significant changes pro12 posed to be made regarding the operation of the National 

13 Flood Insurance Program. 

14 ‘‘(d) CHAIRPERSON.—The members of the Com15 mittee shall elect one member to serve as the chairperson 

16 of the Committee (in this section referred to as the ‘Chair17 person’). 

18 ‘‘(e) COMPENSATION.—Members of the Committee 

19 shall receive no additional compensation by reason of their 

20 service on the Committee. Members may be reimbursed 

21 by the Federal Government for travel expenses, including 

22 per diem in lieu of subsistence, at rates consistent with 

23 rates authorized for employees of Federal agencies under 

24 subchapter 1 of chapter 57 of title 5, United States Code, 


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1 while away from home or regular places of business in per2 formance of service for the Committee. 

3 ‘‘(f) MEETINGS AND ACTIONS.— 

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

5 not less frequently than twice each year at the re6 quest of the Chairperson or a majority of its mem7 bers, and may take action by a vote of the majority 

8 of the members in accordance with the Committee’s 

9 charter. 

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

11 a person designated by the Administrator, shall re12 quest and coordinate the initial meeting of the Com13 mittee. 

14 ‘‘(g) TRANSPARENCY; FACA.—To the greatest ex15 tent possible, the Committee shall operate in a transparent 

16 manner that adheres to the requirements of the Federal 

17 Advisory Committee Act, with the exception that the Com18 mittee shall be permitted to freely communicate both dur19 ing and between meetings under subsection (f) in a con20 fidential manner to discuss non-public information regard21 ing the operations of the National Flood Insurance Pro22 gram and other sensitive and non-public issues. If such 

23 communication occurs, the Committee shall, to the great24 est extent possible, report a summary of such discussions 

25 in an appropriate public manner. 


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

2 Chairperson, the Administrator may detail, on a nonreim3 bursable basis, personnel of the Federal Emergency Man4 agement Agency to assist the Committee in carrying out 

5 its duties. 

6 ‘‘(i) POWERS.—In carrying out this section, the Com7 mittee may hold hearings, receive evidence and assistance, 

8 provide information, and conduct research, as it considers 

9 appropriate. 

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

11 on an annual basis, shall report to the Committee on Fi12 nancial Services of the House of Representatives, the 

13 Committee on Banking, Housing, and Urban Affairs of 

14 the Senate, and the Office of Management and Budget 

15 on— 

16 ‘‘(1) the recommendations made by the Com17 mittee; 

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

19 Management Agency to address such recommenda20 tions to improve the insurance aspects of the na21 tional flood insurance program; and 

22 ‘‘(3) any recommendations made by the Com23 mittee that have been deferred or not acted upon, 

24 together with an explanatory statement. 


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1 ‘‘(k) RULE OF CONSTRUCTION.—This section shall 

2 not be construed to eliminate or alter any requirement on 

3 the Administrator associated with the notification or con4 sultation of specified individuals or groups of individuals 

5 as required elsewhere by statute.’’. 

6 SEC. 13. INTERAGENCY GUIDANCE ON COMPLIANCE. 

7 The Federal entities for lending regulation (as such 

8 term is defined in section 3(a) of the Flood Disaster Pro9 tection Act of 1973 (42 U.S.C. 4003(a))), in consultation 

10 with the Administrator of the Federal Emergency Man11 agement Agency, shall update and reissue the document 

12 entitled ‘‘Interagency Questions and Answers Regarding 

13 Flood Insurance’’ not later than the expiration of the 12- 

14 month period beginning on the date of the enactment of 

15 this Act and not less frequently than biennially thereafter. 

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

17 The Comptroller General of the United States shall 

18 conduct a study of the policies and practices for adjust19 ment of claims for losses under flood insurance coverage 

20 made available under the National Flood Insurance Act, 

21 which shall include— 

22 (1) a comparison of such policies and practices 

23 with the policies and practices for adjustment of 

24 claims for losses under other insurance coverage; 


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1 (2) an assessment of the quality of the adjust2 ments conducted and the effects of such policies and 

3 practices on such quality; 

4 (3) identification of any incentives under such 

5 policies and practices that affect the speed with 

6 which such adjustments are conducted; and 

7 (4) identification of the affects of such policies 

8 and practices on insureds submitting such claims for 

9 losses. 

10 Not later than the expiration of the 18-month period be11 ginning on the date of the enactment of this Act, the 

12 Comptroller General shall submit a report to the Com13 mittee on Financial Services of the House of Representa14 tives and the Committee on Banking, Housing, and Urban 

15 Affairs of the Senate regarding the findings and conclu16 sions of the study conducted pursuant to this section. 

17 SEC. 15. GAO STUDY OF FLOOD INSURANCE COVERAGE 

18 TREATMENT OF EARTH MOVEMENT. 

19 The Comptroller General of the United States shall 

20 conduct a study of the treatment, under flood insurance 

21 coverage made available under the National Flood Insur22 ance Act, of earth movement and subsidence, including 

23 earth movement and subsidence caused by flooding, which 

24 shall include— 


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1 (1) identification and analysis of the effects of 

2 such treatment on the National Flood Insurance 

3 Program and insureds under the program; 

4 (2) an assessment of the availability and afford5 ability of coverage in the private insurance market 

6 for earth movement and subsidence caused by flood7 ing; 

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

9 Flood Insurance Program of covering earth move10 ment and subsidence caused by flooding; and 

11 (4) a projection of the increased premiums that 

12 would be required to make coverage for earth move13 ment losses actuarially sound and not fiscally detri14 mental to the continuation of the National Flood In15 surance Program. 

16 Not later than the expiration of the 18-month period be17 ginning on the date of the enactment of this Act, the 

18 Comptroller General shall submit a report to the Com19 mittee on Financial Services of the House of Representa20 tives and the Committee on Banking, Housing, and Urban 

21 Affairs of the Senate regarding the findings and conclu22 sions of the study conducted pursuant to this section. 


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1 SEC. 16. DEFINITIONS. 

2 (a) NATIONAL FLOOD INSURANCE ACT OF 1968.— 

3 Subsection (a) of section 1370 of the National Flood In4 surance Act of 1968 (42 U.S.C. 4121(a)) is amended— 

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

6 end; 

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

8 the end and inserting a semicolon; and 

9 (3) by adding at the end the following new 

10 paragraphs: 

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

12 means the program under which the Federal Emer13 gency Management Agency enters into a standard 

14 arrangement with private property insurance compa15 nies to sell contracts for flood insurance coverage 

16 under this title under their own business lines of in17 surance, and to adjust and pay claims arising under 

18 such contracts; and 

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

20 means a private property insurance company that 

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

22 (b) BIGGERT-WATERS FLOOD INSURANCE REFORM

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

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

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

26 inserting the following new paragraph: 


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

2 Your Own Program’ and ‘Write Your Own company’ 

3 have the meanings given such terms in section 

4 1370(a) of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4121(a)).’’. 

Æ 


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