Flood Insurance Premium Parity Act of 2014

To ensure fairness in premium rates for coverage for business properties and second homes under the National Flood Insurance Program, and for other purposes. 1. Short title This Act may be cited as the Flood Insurance Premium Parity Act of 2014 2. Repeal of certain rate increases (a) Repeal of prohibition on subsidized rates Paragraph (2) of section 1307(a) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4014 (1) in subparagraph (A)— (A) by striking which is not that is neither (B) by inserting before the semicolon at the end the following: nor the secondary residence of the owner of the property, and the Administrator shall establish standards for a residential property to qualify for purposes of this subparagraph as a secondary residence that shall (A) require the owner of the property to occupy the property for a minimum period of time each year, as the Administrator determines appropriate, and (B) provide that only a single property of any owner may so qualify (2) in subparagraph (C), by inserting or (3) by striking subparagraph (D); and (4) by redesignating subparagraph (E) as subparagraph (D). (b) Conforming amendments relating to limitation on annual rate increases Paragraph (4) of section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)(4)), as amended by section 5 of Public Law 113–89 (A) through (E) (A) through (D) (c) Implementation (1) Effective date The Administrator of the Federal Emergency Management Agency (in this subsection referred to as the Administrator Public Law 112–141 (2) Implementation, coordination, and guidance (A) Facilitation of timely refunds To ensure the participation of Write Your Own companies (as such term is defined in section 100202(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004(a)), the Administrator and the Federal Emergency Management Agency shall consult with Write Your Own companies throughout the development of guidance and rate tables necessary to implement the amendments made by subsections (a) and (b). (B) Implementation and guidance The Administrator shall issue final guidance and rate tables necessary to implement the amendments made by subsections (a) and (b) not later than eight months following the date of the enactment of this Act. Write Your Own companies, in coordination with the Federal Emergency Management Agency, shall have not less than six months but not more than eight months following the issuance of such final guidance and rate tables to implement the changes required by such final guidance and rate tables. (C) Refund of excess premium charges collected The Administrator shall refund directly to insureds any premiums for flood insurance coverage under the National Flood Insurance Program collected in excess of the rates required under the amendments made by subsections (a) and (b). To allow for necessary and appropriate implementation of such amendments, any premium changes necessary to implement such amendments, including any such premium refund due to policy holders, which shall be paid directly by the National Flood Insurance Program, shall not be charged or paid to policyholders by the National Flood Insurance Program until after the Administrator issues guidance and makes available such rate tables to implement the amendments made by subsections (a) and (b).

Summary: Flood Insurance Premium Parity Act of 2014 - Amends the National Flood Insurance Act of 1968 (NFIA) to prohibit the Administrator of the Federal Emergency Management Administration (FEMA) from estimating reduced (subsidized) risk premium rates for flood insurance for residential property that is neither the primary residence of an individual (as under current law) nor the secondary residence of the property owner. Directs FEMA to establish standards for a residential property to qualify as a secondary residence eligible for subsidized risk flood insurance premium rates that: (1) require the owner to occupy the property for an appropriate minimum period of time each year, and (2) limit subsidized risk premium rates to but a single property of the owner. Repeals the prohibition against estimating subsidized risk premium rates for business property (thus qualifying business property for such rates). Directs FEMA to refund directly to insureds any flood insurance premiums collected in excess of the rates required under this Act.