‘‘(iii) assisting small business concerns
that suffer substantial economic injury as
a result of the disaster.
‘‘(B) FARM LOANS.—Emergency loans to
persons whose farming, ranching, or aqua-
culture operations have been substantially af-
fected by a disaster.
‘‘(C) HIGHWAY
REPAIR.—Assistance for
the repair or reconstruction of highways, roads,
and trails that suffer serious damage as the re-
sult of the disaster.
‘‘(D) INSURANCE OF LOANS FOR SINGLE
FAMILY HOMES.—Insurance for mortgages and
rehabilitation loans for 1- to 4-family residences
of mortgagors and borrowers whose residences
are destroyed or damaged as a result of the dis-
aster.
‘‘(15) OTHER.—Any other costs or losses sus-
tained in providing disaster relief in the State, that
are determined by the Corporation to be appropriate
and which are not inconsistent with the provisions of
this subtitle.
‘‘(d) PROHIBITED COVERAGE.—The insurance pro-
gram may not provide coverage for the following losses
and costs:
‘‘(1) NONDISASTER
LOSSES.—Any losses or
costs not arising from a disaster.
‘‘(2) FEDERAL
FACILITIES.—Any losses or
costs sustained by or relating to Federal facilities.
‘‘SEC. 804. ANNUAL PREMIUM CHARGES.
‘‘(a) GENERAL AUTHORITY.—The Corporation shall
require each State, as a condition of participation in the
Corporation and coverage under the insurance program
during any fiscal year, to make a premium payment to
the Corporation for such fiscal year in an amount deter-
mined in accordance with this section. The Corporation
shall annually review the premium payments charged to
each participant and, if appropriate, adjust such payment
amounts.
‘‘(b) ESTABLISHMENT OF CHARGES.—The premium
payments established under this section shall be—
‘‘(1) established using generally accepted actu-
arial principles;
‘‘(2) to the maximum extent practicable, based
on a consideration of the respective risks involved,
including differences in—
‘‘(A) the risk of occurrence of disasters;
‘‘(B) hazard mitigation measures in place,
including any disaster preparedness plan of the
participant for mitigation, warning, emergency
operations, rehabilitation, and recovery;
‘‘(C) anticipated covered losses and costs
in the event of a disaster; and
‘‘(D) the extent to which other sources of
insurance or assistance will cover costs and
losses for types of property and activities cov-
ered in a State; and
‘‘(3) adequate, on the basis of generally accept-
ed actuarial principles, to provide—
‘‘(A) amounts in the reserve account of the
Corporation under section 823 for anticipated
claims; and
‘‘(B) for any administrative and operating
expenses of the Corporation in carrying out the
insurance program.
‘‘(c) CERTIFICATION OF PREMIUM CHARGES.—The
Corporation may not assess any premium charges estab-
lished under this section before the charges have been cer-
tified as actuarially sound by the Disaster Insurance Advi-
sory Commission established by section 826.
‘‘(d) CREDIT
FOR INITIAL CONTRIBUTIONS.—The
Corporation shall credit the amount of the payment made
by a State pursuant to section 821(d)(1) toward any pre-
mium charges under this section owed by the State.
‘‘SEC. 805. CLAIMS.
‘‘(a) PROCEDURE.—The Corporation shall adjust and
pay all claims for proved and approved losses and costs
covered by insurance provided under this subtitle.
‘‘(b) EFFECT
OF DUPLICATIVE COVERAGE.—The
amount of any claim paid for losses or costs under the
insurance program may not include any amount for any
portion of such losses or costs covered by amounts pro-
vided under any other source of insurance or financial as-
sistance.
‘‘(c) EFFECT OF FLOOD INSURANCE COVERAGE.—
‘‘(1) REDUCTION OF FEDERAL ASSISTANCE.—If
a facility or residence located in a special flood haz-
ard area identified for more than 1 year by the Di-
rector pursuant to the National Flood Insurance Act
of 1968 is damaged or destroyed by flooding in a
disaster and such facility or residence is not covered
on the date of such flooding by flood insurance, the
amount of a claim for coverage under this subtitle
which would otherwise be paid under the insurance
program under this subtitle for costs of repair, res-
toration, reconstruction, and replacement of such fa-
cility or residence and associated expenses shall be
reduced in accordance with paragraph (2).
‘‘(2) AMOUNT OF REDUCTION.—The amount of
the reduction in a claim for a facility or residence
pursuant to paragraph (1) shall be the lesser of—
(A) the value of such facility or residence
on the date of the flood damage or destruction;
or
(B) the maximum amount of insurance
proceeds which would have been payable with
respect to such facility or residence if such fa-
cility had been covered by flood insurance under
the National Flood Insurance Act of 1968 on
such date.
‘‘(3) EXCEPTION.—Paragraphs (1) and (2)
shall not apply to a private nonprofit facility or resi-
dence that is not covered by flood insurance solely
because of the local government’s failure to partici-
pate in the flood insurance program under the Na-
tional Flood Insurance Act of 1968.
‘‘(d) CAUSE OF ACTION.—If the Corporation dis-
allows a claim or the claimant refuses to accept the
amount allowed upon any claim, the claimant may, before
the expiration of the 1-year period beginning upon the
claimant’s receipt of written notice of the disallowance or
partial disallowance of the claim, institute an action on
such claim against the Corporation in the United States