ance Act of 1968 (as in effect immediately before the en-
actment of this Act) or subsection (b).
SEC. 403. LIMITATIONS ON CLAIMS FOR REPETITIVELY
DAMAGED STRUCTURES.
Section 1308 of the National Flood Insurance Act of
1968 (42 U.S.C. 4013) is amended by adding after sub-
section (f) (as added by section 303(c) of this Act) the
following new subsection:
‘‘(g) RATES FOR REPETITIVE LOSS STRUCTURES.—
‘‘(1) IN GENERAL.—Subject only to paragraphs
(2) and (3), after the expiration of the 3-year period
beginning on the date of the enactment of the Flood
Insurance Risk Management Act of 1994, the
chargeable rate with respect to any repetitive loss
structure shall be not less than the applicable esti-
mated risk premium rate under section 1307(a)(1)
for the area (or subdivision thereof) in which the
structure is located.
‘‘(2) LIMITATION ON PREMIUM INCREASES.—
The Director may not, pursuant to this subsection,
increase the risk premium rates charged for flood in-
surance under this title for any repetitive loss struc-
ture by an amount that would result in the sum of
such rate increases for the structure during any 12-
month period exceeding 5 percent of the amount of
the risk premium rate applicable to the property
upon the commencement of the 12-month period.
‘‘(3) EXEMPTION FOR CERTAIN STRUCTURES.—
The Director shall exempt any repetitive loss struc-
ture for which construction or substantial improve-
ment was started before January 1, 1975, from the
requirements of paragraph (1), if the Director deter-
mines that the physical and structural characteris-
tics of the structure prevent taking any flood dam-
age mitigation activities that (A) have a reasonable
cost (taking into consideration the value of the
structure), and (B) would substantially reduce the
risk of flood damage to the structure.
‘‘(4) REPETITIVE LOSS STRUCTURE.—For pur-
poses of this subsection, a repetitive loss structure
shall be any structure that the Director has deter-
mined—
‘‘(A) is covered by a contract for flood in-
surance under this title under which, imme-
diately before the determination under this
paragraph, the chargeable rate was less than
the applicable estimated risk premium rate
under section 1307(a)(1) for the area (or sub-
division thereof) in which the structure is
located;
‘‘(B) has incurred significant flood damage
on not less than 2 occasions over the 10-year
period ending upon the determination under
this paragraph and the damage on each such
occasion equaled or exceeded 25 percent of the
value of the structure at the time of the flood
event.’’.
SEC. 404. PENALTIES FOR REPETITIVE CLAIMS.
Section 1312 of the National Flood Insurance Act of
1968 (42 U.S.C. 4019) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘The Director’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) PENALTIES FOR REPETITIVE CLAIMS.—
‘‘(1) IN
GENERAL.—In making coverage for
flood insurance available under this title, the Direc-
tor shall establish a schedule of penalties for repet-
itive claims for losses covered by flood insurance and
shall charge such a penalty according to the sched-
ule upon approval of any such claim or deduct the
amount of the penalty from the payment of any such
approved claim. Such penalties shall apply only to
contracts for flood insurance entered into after the
expiration of the 1-year period beginning upon the
date of the enactment of the Flood Insurance Risk
Management Act of 1994.
‘‘(2) TERMS.—In establishing the amount of
any penalty under this subsection for a repetitive
claim, the Director shall consider the number of
claims made on a property and approved before the
repetitive claim for which the penalty is imposed and
the amounts of such prior claims.
‘‘(3) REPETITIVE CLAIM.—For purposes of this
subsection, a repetitive claim shall be a proved and
approved claim for losses to a property under a con-
tract for flood insurance under this title that—
‘‘(A) equals or exceeds $5,000; and
‘‘(B) is made for the same property for
which 2 or more previous claims under a con-
tract for flood insurance under this title have
been made and approved, each of which equaled
or exceeded $5,000.’’.
SEC. 405. FLOOD INSURANCE PROGRAM ARRANGEMENTS
WITH PRIVATE INSURANCE ENTITIES.
Section 1345(b) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4081(b)) is amended by striking the
period at the end and inserting the following: ‘‘and without
regard to the provisions of the Federal Advisory Commit-
tee Act (5 U.S.C. App.).’’.
SEC. 406. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to appropriated such sums as
may be necessary to carry out this Act and the amend-
ments made by this Act.
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