I 

113TH CONGRESS 

1ST SESSION H. R. 3693 

To clarify the application of the Biggert-Waters Flood Insurance Reform 

Act of 2012 to premium rates for certain properties, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 11, 2013 

Mr. CASSIDY (for himself, Mr. BUCHANAN, Mr. HASTINGS of Florida, Mr. 

PALAZZO, Mr. SCALISE, Mr. ROGERS of Alabama, Mr. ROSS, Mr. JOHNSON of Ohio, Mr. NUGENT, Mr. MARINO, Ms. CASTOR of Florida, Ms. 

ROS-LEHTINEN, Mr. BILIRAKIS, Mr. CRENSHAW, and Mr. 

SOUTHERLAND) introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To clarify the application of the Biggert-Waters Flood Insurance Reform Act of 2012 to premium rates for certain 

properties, 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 ‘‘Flood Insurance Relief 

5 and Transparency Act of 2013’’. 


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1 SEC. 2. DELAYED EFFECTIVE DATE FOR PREMIUM RATE IN2 CREASES FOR PROPERTIES SUBJECT TO MAP 

3 REVISIONS OR UPDATES. 

4 (a) DELAY.—Notwithstanding any other provision of 

5 law, any change in risk premium rates for flood insurance 

6 under the National Flood Insurance Program otherwise 

7 resulting from the amendment made by section 100207 

8 of the Biggert-Waters Flood Insurance Reform Act of 

9 2012 (Public Law 112–141; 126 Stat. 919) shall not take 

10 effect until March 1, 2015. 

11 (b) DISCLOSURE.—Not later than October 1, 2014, 

12 the Administrator of the Federal Emergency Management 

13 Agency shall make publicly available all data affecting any 

14 changes in risk premium rates for flood insurance cov15 erage under the National Flood Insurance Program result16 ing from the amendment made by section 100207 of the 

17 Biggert-Waters Flood Insurance Reform Act of 2012 

18 (Public Law 112–141; 126 Stat. 919). 

19 (c) EFFECTIVE DATE.—Subsection (a) shall take ef20 fect as if enacted as part of the Biggert-Waters Flood In21 surance Reform Act of 2012 (Public Law 112–141). 

22 SEC. 3. AFFORDABILITY STUDY FUNDING. 

23 Section 100236(d) of the Biggert-Waters Flood In24 surance Reform Act of 2012 (Public Law 112–141; 126 

25 Stat. 957) is amended— 


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1 (1) by striking ‘‘there’’ and inserting ‘‘amounts 

2 not otherwise obligated from the National Flood In3 surance Fund’’; and 

4 (2) by striking ‘‘from the National Flood Insur5 ance Fund, of amounts not otherwise obligated, not 

6 more than $750,000’’. 

7 SEC. 4. MONTHLY INSTALLMENT PAYMENTS FOR PRE8 MIUMS. 

9 Section 1308 of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4015) is amended by striking subsection 

11 (g) and inserting the following new subsection: 

12 ‘‘(g) CONDITIONS FOR MONTHLY PAYMENTS.— 

13 ‘‘(1) OPTION.—Notwithstanding any other pro14 vision of law, with respect to any chargeable risk 

15 premiums for flood insurance coverage under this 

16 title, the Administrator shall provide policyholders 

17 with the option of paying such premiums on an an18 nual or monthly basis. 

19 ‘‘(2) ELIGIBILITY.—A policyholder of flood in20 surance coverage under this title shall be eligible to 

21 make monthly payments of premiums only if all of 

22 the following conditions are met: 

23 ‘‘(A) The policyholder does not have the 

24 option of escrowing premiums and fees for flood 

25 insurance as provided in section 102(d) of the 


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1 Flood Disaster Protection Act of 1973 (42 

2 U.S.C. 4012a(d)). 

3 ‘‘(B) The policyholder agrees to permit 

4 payment of the monthly premiums using elec5 tronic fund transfer or automatic withdrawals 

6 from a checking account, savings account, or 

7 credit card. 

8 ‘‘(C) Upon a covered loss occurring and a 

9 claim being presented, the remaining premium 

10 owed for that policy term shall be deducted in 

11 full from payments made for that loss. 

12 ‘‘(D) The policyholder certifies that the 

13 policyholder understands the payment terms 

14 and consequences for nonpayment due to insuf15 ficient funds, as provided under this subsection. 

16 ‘‘(3) MONTHLY PAYMENTS.—Upon the pur17 chase or renewal of flood insurance coverage and 

18 paying the premium on a monthly basis, the policyholder shall pay no less than 1 19 ⁄12 of the total annual 

20 premium as the initial payment at time of applica21 tion or renewal, and then equal monthly payments 

22 for the remaining 11 months of the policy, subject 

23 to paragraph (2)(C). 

24 ‘‘(4) ADDITIONAL PREMIUMS AND ADMINISTRA25 TIVE EXPENSES.—The Administrator shall charge 


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1 the policyholder an administrative fee to cover the 

2 operating and administrative expenses to administer 

3 monthly premium payments, and the Administrator 

4 may factor into the premiums to be paid by policy5 holders an appropriate amount of premium to cover 

6 any increased risk that may arise from allowing 

7 monthly installment payments. 

8 ‘‘(5) FAILURE TO MAKE A PAYMENT.—Upon 

9 the purchase or renewal of a flood insurance policy, 

10 the Administrator shall provide the policyholder with 

11 a payment schedule identifying the date the pre12 mium will be collected through electronic fund trans13 fer or automatic withdrawals from a checking ac14 count, savings account, or credit card. If there are 

15 insufficient funds to cover the monthly premium 

16 payment due on the date specified in the schedule or 

17 the required payment is otherwise not received— 

18 ‘‘(A) coverage under the National Flood 

19 Insurance Program will immediately end effec20 tive the following day at 12:01 a.m.; and 

21 ‘‘(B) the policyholder will no longer be eli22 gible to make premium payments on a monthly 

23 basis for an appropriate period, as identified by 

24 the Administrator. 


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1 ‘‘(6) IMPLEMENTATION.—Notwithstanding sec2 tion 1306 (42 U.S.C. 4013), not later than the expi3 ration of the 1-year period beginning on the date of 

4 enactment of this subsection, the Administrator may 

5 issue an endorsement to the Residential and General 

6 Standard Flood Insurance Policies to permit month7 ly payments, cancellation of coverage for non-pay8 ment, and any other terms necessary to implement 

9 this subsection.’’. 

Æ 


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