II 
Calendar No. 501 
109TH CONGRESS 
2D SESSION 
H. R. 4973 
IN THE SENATE OF THE UNITED STATES 
JUNE 28, 2006 
Received; read twice and placed on the calendar 
AN ACT 
To restore the financial solvency of the national flood 
insurance program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Flood Insurance Reform and Modernization Act of 
2006’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Findings and purposes. 
Sec. 3. Study regarding status of pre-FIRM properties and mandatory pur-
chase requirement for natural 100-year floodplain and non- 
Federally related loans. 
Sec. 4. Phase-in of actuarial rates for nonresidential properties and non-pri-
mary residences. 
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Sec. 5. Waiting period for effective date of policies. 
Sec. 6. Enforcement. 
Sec. 7. Maximum coverage limits. 
Sec. 8. Coverage for additional living expenses, basement improvements, busi-
ness interruption, and replacement cost of contents. 
Sec. 9. Increase in annual limitation on premium increases. 
Sec. 10. Increase in borrowing authority. 
Sec. 11. FEMA participation in State disaster claims mediation programs. 
Sec. 12. FEMA reports on financial status of insurance program. 
Sec. 13. Extension of pilot program for mitigation of severe repetitive loss prop-
erties. 
Sec. 14. Notice of availability of flood insurance and escrow in RESPA good 
faith estimate. 
Sec. 15. Reiteration of FEMA responsibilities under 2004 Reform Act. 
Sec. 16. Updating of flood maps and elevation standards. 
Sec. 17. Notification and appeal of map changes; notification of establishment 
of flood elevations. 
Sec. 18. National levee inventory. 
Sec. 19. Clarification of replacement cost provisions, forms, and policy lan-
guage. 
Sec. 20. Authorization of additional FEMA staff. 
Sec. 21. Investigation of write-your-own insurers’ adjustment of claims relating 
to Hurricane Katrina. 
Sec. 22. Eligibility of property demolition and rebuilding for mitigation assist-
ance program. 
Sec. 23. Sampling methods for quality assurance. 
Sec. 24. Extension of deadline for filing proof of loss. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) flooding has been shown to occur in all 50 
States; 
(2) the aggregate amount of the flood insurance 
claims resulting from Hurricane Katrina, Hurricane 
Rita, and other recent events has exceeded the ag-
gregate amount of all claims previously paid in the 
history of the national flood insurance program, re-
quiring a significant increase in the program’s bor-
rowing authority; 
(3) flood insurance policyholders have a legiti-
mate expectation that they will receive fair and time-
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ly compensation for losses covered under their poli-
cies; 
(4) substantial flooding has occurred, and will 
likely occur again, outside the areas designated by 
the Federal Emergency Management Agency as 
flood hazard areas; 
(5) properties located in low- to moderate-risk 
areas are eligible to purchase flood insurance policies 
with premiums as low as $112 a year; 
(6) about 450,000 vacation homes, second 
homes, and commercial properties are subsidized 
and are not paying actuarially sound rates for flood 
insurance; 
(7) phasing out subsidies currently extended to 
vacation homes, second homes, and commercial 
properties would result in estimated average savings 
to the taxpayers of the United States and the na-
tional flood insurance program of $335,000,000 
each year; 
(8) the maximum coverage limits for flood in-
surance policies should be increased to reflect infla-
tion and the increased cost of housing; 
(9) significant reforms to the national flood in-
surance program required in the Bunning-Bereuter- 
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Blumenauer Flood Insurance Reform Act of 2004 
have yet to be implemented; and 
(10) in addition to reforms required in the 
Bunning-Bereuter-Blumenauer Flood Insurance Re-
form Act of 2004, the national flood insurance pro-
gram requires a modernized and updated adminis-
trative model to ensure that the program is solvent 
and the people of the United States have continued 
access to flood insurance. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to protect the integrity of the national flood 
insurance program by fully funding existing legal ob-
ligations expected by existing policyholders who have 
paid policy premiums in return for flood insurance 
coverage; 
(2) to increase incentives for homeowners and 
communities to participate in the national flood in-
surance program and to improve oversight to ensure 
full participation in the program for owners of prop-
erties for which such participation is mandatory; and 
(3) to increase awareness of homeowners of 
flood risks and improve the quality of information 
regarding such risks provided to homeowners. 
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SEC. 3. STUDY REGARDING STATUS OF PRE-FIRM PROP-
ERTIES AND MANDATORY PURCHASE RE-
QUIREMENT FOR NATURAL 100-YEAR FLOOD-
PLAIN 
AND 
NON-FEDERALLY 
RELATED 
LOANS. 
(a) IN GENERAL.—The Comptroller General shall 
conduct a study as follows: 
(1) PRE-FIRM
PROPERTIES.—The study shall 
determine the status of the national flood insurance 
program, as of the date of the enactment of this Act, 
with respect to the provision of flood insurance cov-
erage for pre-FIRM properties (as such term is de-
fined in section 578(b) of the National Flood Insur-
ance Reform Act of 1994 (42 U.S.C. 4014 note)), 
which shall include determinations of— 
(A) the number of pre-FIRM properties 
for which coverage is provided and the extent of 
such coverage; 
(B) the cost of providing coverage for such 
pre-FIRM properties to the national flood in-
surance program; 
(C) the anticipated rate at which such pre- 
FIRM properties will cease to be covered under 
the program; 
(D) the effects that implementation of the 
Bunning-Bereuter-Blumenauer Flood Insurance 
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Reform Act of 2004 will have on the national 
flood insurance program generally and on cov-
erage of pre-FIRM properties under the pro-
gram; and 
(E) the extent to which eligibility stand-
ards for pre-FIRM properties were inconsistent 
and resulted in disparities in coverage among 
such properties. 
(2) MANDATORY PURCHASE REQUIREMENT FOR 
NATURAL 100-YEAR FLOODPLAIN.—The study shall 
assess the impact, effectiveness, and feasibility of 
amending the provisions of the Flood Disaster Pro-
tection Act of 1973 regarding the properties that are 
subject to the mandatory flood insurance coverage 
purchase requirements under such Act to extend 
such requirements to properties located in any area 
that would be designated as an area having special 
flood hazards but for the existence of a structural 
flood protection system, and shall determine— 
(A) the regulatory, financial and economic 
impacts of extending such mandatory purchase 
requirements on the costs of homeownership, 
the actuarial soundness of the national flood in-
surance program, the Federal Emergency Man-
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agement Agency, local communities, insurance 
companies, and local land use; 
(B) the effectiveness of extending such 
mandatory purchase requirements in protecting 
homeowners from financial loss and in pro-
tecting the financial soundness of the national 
flood insurance program; and 
(C) any impact on lenders of complying 
with or enforcing such extended mandatory re-
quirements. 
(3) MANDATORY PURCHASE REQUIREMENT FOR 
NON-FEDERALLY RELATED LOANS.—The study shall 
assess the impact, effectiveness, and feasibility of, 
and basis under the Constitution of the United 
States for, amending the provisions of the Flood 
Disaster Protection Act of 1973 regarding the prop-
erties that are subject to the mandatory flood insur-
ance coverage purchase requirements under such Act 
to extend such requirements to any property that is 
located in any area having special flood hazards and 
which secures the repayment of a loan that is not 
described in paragraph (1), (2), or (3) of section 
102(b) of such Act, and shall determine how best to 
administer and enforce such a requirement, taking 
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into consideration other insurance purchase require-
ments under Federal and State law. 
(b) REPORT.—The Comptroller General shall submit 
a report to the Congress regarding the results and conclu-
sions of the study under this subsection not later than the 
expiration of the 6-month period beginning on the date 
of the enactment of this Act. 
SEC. 4. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN-
TIAL PROPERTIES, CERTAIN PRE-FIRM PROP-
ERTIES, AND NON-PRIMARY RESIDENCES. 
(a) IN GENERAL.—Section 1308(c) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) is 
amended— 
(1) by redesignating paragraph (2) as para-
graph (4); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) NONRESIDENTIAL PROPERTIES.—Any non-
residential property. 
‘‘(3) NON-PRIMARY RESIDENCES.—Any residen-
tial property that is not the primary residence of an 
individual. 
‘‘(4) RECENTLY PURCHASED PRE-FIRM PROP-
ERTIES.—Any property that— 
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‘‘(A) has been constructed or substantially 
improved and for which such construction or 
improvement was started, as determined by the 
Director, before December 31, 1974, or before 
the effective date of the initial rate map pub-
lished by the Director under paragraph (2) of 
section 1360 for the area in which such prop-
erty is located, whichever is later; and 
‘‘(B) is purchased after the date of the en-
actment of the Flood Insurance Reform and 
Modernization Act of 2006.’’. 
(b) TECHNICAL AMENDMENTS.—Section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015) 
is amended— 
(1) in subsection (c)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘Subject only to the limitations pro-
vided under paragraphs (1) and (2), the’’ and 
inserting ‘‘The’’; and 
(B) in paragraph (1), by striking ‘‘, ex-
cept’’ and all that follows through ‘‘subsection 
(e)’’; and 
(2) in subsection (e), by striking ‘‘paragraph 
(2) or (3)’’ and inserting ‘‘paragraph (4)’’. 
(c) EFFECTIVE DATE AND TRANSITION.— 
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(1) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall apply beginning on 
the submission to the Congress, by the Director of 
the Federal Emergency Management Agency, of the 
report required under section 16(b)(2), except as 
provided in paragraph (2) of this subsection. 
(2) TRANSITION.—In the case of any property 
described in paragraph (2), (3), or (4) of section 
1308(c) of the National Flood Insurance Act of 
1968, as amended by subsection (a) of this section, 
that, on the effective date under paragraph (1) of 
this subsection, is covered under a policy for flood 
insurance made available under the national flood 
insurance program for which the chargeable pre-
mium rates are less than the applicable estimated 
risk premium rate under section 1307(a)(1) for the 
area in which the property is located, the Director 
of the Federal Emergency Management Agency shall 
increase the chargeable premium rates for such 
property over time to such applicable estimated risk 
premium rate under section 1307(a)(1). Such in-
crease shall be made by increasing the chargeable 
premium rates for the property (after application of 
any increase in the premium rates otherwise applica-
ble to such property) by 15 percent (or such lesser 
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amount as may be necessary so that the chargeable 
rate does not exceed such applicable estimated risk 
premium rate) once during the 12-month period that 
begins upon the effective date under paragraph (1) 
of this subsection and once every 12 months there-
after until such increase is accomplished. The provi-
sions of paragraphs (2), (3), and (4) of such section 
1308(c) shall apply to such a property upon the ac-
complishment of such increase and thereafter. 
SEC. 5. WAITING PERIOD FOR EFFECTIVE DATE OF POLI-
CIES. 
(a) REDUCTION.—Section 1306(c)(1) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(c)(1)) is 
amended by striking ‘‘30-day’’ and inserting ‘‘15-day’’. 
(b) EXCEPTION.—Section 1306(c)(2)(A) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4013(c)(2)(A)) is amended by inserting before the semi-
colon the following: ‘‘or is in connection with the purchase 
or other transfer of the property for which the coverage 
is provided (regardless of whether a loan is involved in 
the purchase or transfer transaction). 
SEC. 6. ENFORCEMENT. 
Section 102(f) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a(f)) is amended— 
(1) in paragraph (5)— 
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(A) in the first sentence, by striking 
‘‘$350’’ and inserting ‘‘$2,000’’; and 
(B) in the last sentence, by striking 
‘‘$100,000’’ and inserting ‘‘$1,000,000; except 
that such limitation shall not apply to a regu-
lated lending institution or enterprise for a cal-
endar year if, in any three (or more) of the five 
calendar years immediately preceding such cal-
endar year, the total amount of penalties as-
sessed under this subsection against such lend-
ing institution or enterprise was $1,000,000’’; 
and 
(2) in paragraph (6), by adding after the period 
at the end the following: ‘‘No penalty may be im-
posed under this subsection on a regulated lending 
institution or enterprise that has made a good faith 
effort to comply with the requirements of the provi-
sions referred to in paragraph (2) or for any non- 
material violation of such requirements.’’. 
SEC. 7. MAXIMUM COVERAGE LIMITS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
(1) in paragraph (2), by striking ‘‘$250,000’’ 
and inserting ‘‘$335,000’’; 
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(2) in paragraph (3), by striking ‘‘$100,000’’ 
and inserting ‘‘$135,000’’; and 
(3) in paragraph (4), by striking ‘‘$500,000’’ 
each place such term appears and inserting 
‘‘$670,000’’. 
SEC. 8. COVERAGE FOR ADDITIONAL LIVING EXPENSES, 
BASEMENT 
IMPROVEMENTS, 
BUSINESS 
INTERRUPTION, AND REPLACEMENT COST 
OF CONTENTS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5)— 
(A) by inserting ‘‘pursuant to paragraph 
(2), (3), or (4)’’ after ‘‘any flood insurance cov-
erage’’; and 
(B) by striking the period at the end and 
inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(6) in the case of any residential property, 
each renewal or new contract for flood insurance 
coverage shall provide not less than $1,000 aggre-
gate liability per dwelling unit for any necessary in-
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creases in living expenses incurred by the insured 
when losses from a flood make the residence unfit to 
live in, which coverage shall be available only at 
chargeable rates that are not less than the estimated 
premium rates for such coverage determined in ac-
cordance with section 1307(a)(1); 
‘‘(7) in the case of any residential property, op-
tional coverage for additional living expenses de-
scribed in paragraph (6) shall be made available to 
every insured upon renewal and every applicant in 
excess of the limits provided in paragraph (6) in 
such amounts and at such rates as the Director 
shall establish, except that such chargeable rates 
shall not be less than the estimated premium rates 
for such coverage determined in accordance with sec-
tion 1307(a)(1); 
‘‘(8) in the case of any residential property, op-
tional coverage for losses, resulting from floods, to 
improvements and personal property located in base-
ments, crawl spaces, and other enclosed areas under 
buildings that are not covered by primary flood in-
surance coverage under this title, shall be made 
available to every insured upon renewal and every 
applicant, except that such coverage shall be made 
available only at chargeable rates that are not less 
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than the estimated premium rates for such coverage 
determined in accordance with section 1307(a)(1); 
‘‘(9) in the case of any commercial property, 
optional coverage for losses resulting from any par-
tial or total interruption of the insured’s business 
caused by damage to, or loss of, such property from 
a flood shall be made available to every insured upon 
renewal and every applicant, except that— 
‘‘(A) for purposes of such coverage, losses 
shall be determined based on the profits the 
covered business would have earned, based on 
previous financial records, had the flood not oc-
curred; and 
‘‘(B) such coverage shall be made available 
only at chargeable rates that are not less than 
the estimated premium rates for such coverage 
determined 
in 
accordance 
with 
section 
1307(a)(1); and 
‘‘(10) in the case of any residential property 
and any commercial property, optional coverage for 
the full replacement costs of any contents related to 
the structure that exceed the limits of coverage oth-
erwise provided in this subsection shall be made 
available to every insured upon renewal and every 
applicant, except that such coverage shall be made 
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available only at chargeable rates that are not less 
than the estimated premium rates for such coverage 
determined in accordance with section 1307(a)(1).’’. 
SEC. 9. INCREASE IN ANNUAL LIMITATION ON PREMIUM IN-
CREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended by striking ‘‘10 
percent’’ and inserting ‘‘15 percent’’. 
SEC. 10. INCREASE IN BORROWING AUTHORITY. 
(a) BORROWING AUTHORITY.—The first sentence of 
subsection (a) of section 1309 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4016(a)), as amended by 
the National Flood Insurance Program Further Enhanced 
Borrowing Authority Act of 2005 (Public Law 109–106; 
119 
Stat. 
2288), 
is 
amended 
by 
striking 
‘‘$20,775,000,000’’ and inserting ‘‘$25,000,000,000’’. 
(b) FEMA REPORT.—Not later than the expiration 
of the 6-month period beginning on the date of the enact-
ment of this Act, the Director of the Federal Emergency 
Management Agency shall submit a report to the Congress 
setting forth a plan for repaying any amounts borrowed 
pursuant to increase in borrowing authority authorized 
under the amendments made by subsection (a). 
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SEC. 11. FEMA PARTICIPATION IN STATE DISASTER CLAIMS 
MEDIATION PROGRAMS. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1313 (42 U.S.C. 4020) the 
following new section: 
‘‘SEC. 1314. FEMA PARTICIPATION IN STATE DISASTER 
CLAIMS MEDIATION PROGRAMS. 
‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case 
of the occurrence of a natural catastrophe that may have 
resulted in flood damage covered by insurance made avail-
able under the National Flood Insurance Program and a 
loss covered by personal lines residential property insur-
ance policy, upon request made by the insurance commis-
sioner of a State (or such other official responsible for reg-
ulating the business of insurance in the State) for the par-
ticipation of representatives of the Director in a program 
sponsored by such State for nonbinding mediation of in-
surance claims resulting from a natural catastrophe, the 
Director shall cause such representatives to participate in 
such State program, when claims under the national flood 
insurance program are involved, to expedite settlement of 
flood damage claims resulting from such catastrophe.’’. 
‘‘(b) EXTENT OF PARTICIPATION.—Participation by 
representatives of the Director required under subsection 
(a) with respect to flood damage claims resulting from a 
natural catastrophe shall include— 
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‘‘(1) providing adjusters certified for purposes 
of the national flood insurance program who are au-
thorized to settle claims against such program re-
sulting from such catastrophe in amounts up to the 
limits of policies under such program; 
‘‘(2) requiring such adjusters to attend State- 
sponsored mediation meetings regarding flood insur-
ance claims resulting from such catastrophe at times 
and places as may be arranged by the State; 
‘‘(3) participating in good-faith negotiations to-
ward the settlement of such claims with policy-
holders of coverage made available under the na-
tional flood insurance program; and 
‘‘(4) finalizing the settlement of such claims on 
behalf of the national flood insurance program with 
such policyholders. 
‘‘(c) COORDINATION.—Representatives of the Direc-
tor who participate pursuant to this section in a State- 
sponsored mediation program with respect to a natural ca-
tastrophe shall at all times coordinate their activities with 
insurance officials of the State and representatives of in-
surers for the purpose of consolidating and expediting the 
settlement of claims under the national flood insurance 
program resulting from such catastrophe at the earliest 
possible time. 
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‘‘(d) MEDIATION PROCEEDINGS
AND PRIVILEGED 
DOCUMENTS.—As a condition of the participation of Rep-
resentatives of the Director pursuant to this section in 
State-sponsored mediation, all statements made and docu-
ments produced pursuant to such mediation involving rep-
resentatives of the Director shall be deemed privileged and 
confidential settlement negotiations made in anticipation 
of litigation. 
‘‘(e) EFFECT
OF PARTICIPATION
ON LIABILITY, 
RIGHT, AND OBLIGATIONS.—Participation of Representa-
tives of the Director pursuant to this section in State- 
sponsored mediation shall not affect or expand the liability 
of any party in contract or in tort, nor shall it affect the 
rights or obligations of the parties as provided in the 
Standard Flood Insurance Policy under the national flood 
insurance program, regulations of the Federal Emergency 
Management Agency, this Act, or Federal common law. 
‘‘(f) EXCLUSIVE FEDERAL JURISDICTION.—Partici-
pation of Representatives of the Director pursuant to this 
section in State-sponsored mediation shall not alter, 
change or modify the original exclusive jurisdiction of 
United States courts as provided in this Act. 
‘‘(g) COST LIMITATION.—Nothing in this section 
shall be construed to require the Director or representa-
tives of the Director to pay additional mediation fees relat-
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ing to flood claims associated with a State-sponsored me-
diation program in which representatives of the Director 
participate. 
‘‘(h) EXCEPTION.—In the case of the occurrence of 
a natural catastrophe that results in flood damage claims 
under the national flood insurance program and does not 
result in any loss covered by a personal lines residential 
property insurance policy— 
‘‘(1) this section shall not apply; and 
‘‘(2) the provisions of the Standard Flood In-
surance Policy under the national flood insurance 
program and the appeals process established pursu-
ant to section 205 of the Bunning-Bereueter- 
Blumenauer Flood Insurance Reform Act of 2004 
(Public Law 108–264; 118 Stat. 726) and regula-
tions issued pursuant to such section shall apply ex-
clusively. 
‘‘(i) REPRESENTATIVES
OF DIRECTOR.—For pur-
poses of this section, the term ‘representatives of the Di-
rector’ means representatives of the national flood insur-
ance program who participate in the appeals process es-
tablished pursuant to section 205 of the Bunning- 
Bereueter-Blumenauer Flood Insurance Reform Act of 
2004 (Public Law 108–264; 118 Stat. 726) and regula-
tions issued pursuant to such section.’’. 
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HR 4973 PCS 
SEC. 12. FEMA REPORTS ON FINANCIAL STATUS OF INSUR-
ANCE PROGRAM. 
Section 1320 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4027) is amended— 
(1) in the section heading, by striking ‘‘RE-
PORT TO THE PRESIDENT’’ and inserting ‘‘RE-
PORTS’’; 
(2) in subsection (a), by striking ‘‘IN GEN-
ERAL’’ and inserting ‘‘BIENNIAL REPORT TO PRESI-
DENT’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(c) SEMIANNUAL REPORTS TO CONGRESS ON FI-
NANCIAL STATUS.—Not later than June 30 and December 
31 of each year, the Director shall submit a report to the 
Congress regarding the financial status of the national 
flood insurance program under this title. Each such report 
shall describe the financial status of the National Flood 
Insurance Fund and current and projected levels of 
claims, premium receipts, expenses, and borrowing under 
the program.’’. 
SEC. 13. EXTENSION OF PILOT PROGRAM FOR MITIGATION 
OF SEVERE REPETITIVE LOSS PROPERTIES. 
Section 1361A of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4102a) is amended as follows: 
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HR 4973 PCS 
(1) FUNDING.—In subsection (k)(1), by strik-
ing ‘‘and 2009’’ and inserting ‘‘2009, 2010, and 
2011’’. 
(2) TERMINATION.—In subsection (l), by strik-
ing ‘‘September 30, 2009’’ and inserting ‘‘September 
30, 2011’’. 
SEC. 14. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
AND ESCROW IN RESPA GOOD FAITH ESTI-
MATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 
amended by adding at the end the following new sentence: 
‘‘Each such good faith estimate shall include the following 
conspicuous statements: (1) that flood insurance coverage 
for residential real estate is generally available under the 
National Flood Insurance Program whether or not the 
real estate is located in an area having special flood haz-
ards and that, to obtain such coverage, a home owner or 
purchaser should contact a property insurance agent, 
broker, or company; and (2) that the escrowing of flood 
insurance payments is required for many loans under sec-
tion 102(d) of the Flood Disaster Protection Act of 1973, 
and may be a convenient and available option with respect 
to other loans.’’. 
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HR 4973 PCS 
SEC. 15. REITERATION OF FEMA RESPONSIBILITIES UNDER 
2004 REFORM ACT. 
(a) APPEALS PROCESS.—As directed in section 205 
of the Bunning-Bereuter-Blumenauer Flood Insurance 
Reform Act of 2004 (42 U.S.C. 4011 note), the Director 
of the Federal Emergency Management Agency is again 
directed to, not later than 90 days after the date of the 
enactment of this Act, establish an appeals process 
through which holders of a flood insurance policy may ap-
peal the decisions, with respect to claims, proofs of loss, 
and loss estimates relating to such flood insurance policy 
as required by such section. 
(b) MINIMUM TRAINING AND EDUCATION REQUIRE-
MENTS.—The Director of the Federal Emergency Man-
agement Agency is directed to continue to work with the 
insurance industry, State insurance regulators, and other 
interested parties to implement the minimum training and 
education standards for all insurance agents who sell flood 
insurance policies that were established by the Director 
under the notice published September 1, 2005 (70 Fed. 
Reg. 52117) pursuant to section 207 of the Bunning-Be-
reuter-Blumenauer Flood Insurance Reform Act of 2004 
(42 U.S.C. 4011 note). 
(c) REPORT.—Not later than the expiration of the 6- 
month period beginning on the date of the enactment of 
this Act, the Director of the Federal Emergency Manage-
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