any audit or investigation, or from issuing any sub-
poena or summons during the course of any audit or 
investigation. 
‘‘(6) REMOVAL.—The President and the Director 
shall have the power to remove, discharge, or dismiss 
the National Flood Insurance Advocate. Not later 
than 15 days after the removal, discharge, or dis-
missal of the Advocate, the President or the Director 
shall report to the Committee on Banking of the Sen-
ate and the Committee on Financial Services of the 
House of Representatives on the basis for such re-
moval, discharge, or dismissal. 
‘‘(b) FUNCTIONS OF OFFICE.—It shall be the function 
of the Office of the Flood Insurance Advocate to—
‘‘(1) assist injure under the national flood insur-
ance program in resolving problems with the Federal 
Emergency Management Agency relating to such pro-
gram; 
‘‘(2) identify areas in which such injure have 
problems in dealings with the Federal Emergency 
Management Agency relating to such program; 
‘‘(3) propose changes in the administrative prac-
tices of the Federal Emergency Management Agency 
to mitigate problems identified under paragraph (2);
‘‘(4) identify potential legislative, administra-
tive, or regulatory changes which may be appropriate 
to mitigate such problems; 
‘‘(5) conduct, supervise, and coordinate—
‘‘(A) systematic and random audits and in-
vestigations of insurance companies and associ-
ated entities that sell or offer policies under the 
National Flood Insurance Program to determine 
whether such insurance companies or associated 
entities are allocating only flood losses under 
such insurance policies to the National Flood In-
surance Program; and 
‘‘(B) audits and investigations to determine 
if an insurance company or associated entity de-
scribed under subparagraph (A) is negotiating 
on behalf of the National Flood Insurance Pro-
gram with third parties in good faith; 
‘‘(6) conduct, supervise, and coordinate inves-
tigations into the operations of the national flood in-
surance program for the purpose of—
‘‘(A) promoting economy and efficiency in 
the administration of such program; 
‘‘(B) preventing and detecting fraud and 
abuse in the program; and
‘‘(C) identifying, and referring to the Attor-
ney General for prosecution, any participant in 
such fraud or abuse; and 
‘‘(7) identify and investigate conflicts of interest 
that undermine the economy and efficiency of the na-
tional flood insurance program. 
‘‘(c) AUTHORITY OF THE NATIONAL FLOOD INSUR-
ANCE ADVOCATE.—The National Flood Insurance Advocate 
may—
‘‘(1) have access to all records, reports, audits, 
reviews, documents, papers, recommendations, or 
other material available to the Director which relate 
to administration or operation of the national flood 
insurance program with respect to which the National 
Flood Insurance Advocate has responsibilities under 
this section, including information submitted pursu-
ant to Section 128 of this Act; 
‘‘(2) undertake such investigations and reports 
relating to the administration or operation of the na-
tional flood insurance program as are, in the judg-
ment of the National Flood Insurance Advocate, nec-
essary or desirable; 
‘‘(3) request such information or assistance as 
may be necessary for carrying out the duties and re-
sponsibilities provided by this section from any Fed-
eral, State, or local governmental agency or unit 
thereof; 
‘‘(4) request the production of information, docu-
ments, reports, answers, records (including phone 
records), accounts, papers, emails, hard drives, 
backup tapes, software, audio or visual aides, and 
any other data and documentary evidence necessary 
in the performance of the functions assigned to the 
National Flood Insurance Advocate by this section; 
‘‘(5) request the testimony of any person in the 
employ of any insurance company or associated enti-
ty participating in the National Flood Insurance 
Program, described under subsection (b)(5)(A), or any 
successor to such company or entity, including any 
member of the board of such company or entity, any 
trustee of such company or entity, any partner in 
such company or entity, or any agent or representa-
tive of such company or entity; 
‘‘(6) select, appoint, and employ such officers 
and employees as may be necessary for carrying out 
the functions, powers, and duties of the Office subject 
to the provisions of title 5, United States Code, gov-
erning appointments in the competitive service, and 
the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and 
General Schedule pay rates; 
‘‘(7) obtain services as authorized by section 
3109 of title 5, United States Code, at daily rates not 
to exceed the equivalent rate prescribed for the rate of 
basic pay for a position at level IV of the Executive 
Schedule; and 
‘‘(8) to the extent and in such amounts as may 
be provided in advance by appropriations Acts, enter 
into contracts and other arrangements for audits, 
studies, analyses, and other services with public agen-
cies and with private persons, and to make such pay-
ments as may be necessary to carry out the provisions 
of this section. 
‘‘(d) ADDITIONAL DUTIES OF THE NFIA.—The Na-
tional Flood Insurance Advocate shall—
‘‘(1) monitor the coverage and geographic alloca-
tion of regional offices of flood insurance advocates; 
‘‘(2) develop guidance to be distributed to all 
Federal Emergency Management Agency officers and 
employees having duties with respect to the national 
flood insurance program, outlining the criteria for re-
ferral of inquiries by insureds under such program to 
regional offices of flood insurance advocates;
‘‘(3) ensure that the local telephone number for 
each regional office of the flood insurance advocate is 
published and available to such insureds served by the 
office; and 
‘‘(4) establish temporary State or local offices 
where necessary to meet the needs of qualified in-
sureds following a flood event. 
‘‘(e) OTHER RESPONSIBILITIES.—
‘‘(1) ADDITIONAL REQUIREMENTS RELATING TO 
CERTAIN AUDITS.—Prior to conducting any audit or 
investigation relating to the allocation of flood losses 
under subsection (b)(5)(A), the National Flood Insur-
ance Advocate may—
‘‘(A) consult with appropriate subject-mat-
ter experts to identify the data necessary to de-
termine whether flood claims paid by insurance 
companies or associated entities on behalf the 
national flood insurance program reflect dam-
ages caused by flooding; 
‘‘(B) collect or compile the data identified 
in subparagraph (A), utilizing existing data 
sources to the maximum extent practicable; and 
‘‘(C) establish policies, procedures, and 
guidelines for application of such data in all au-
dits and investigations authorized under this sec-
tion. 
‘‘(2) ANNUAL REPORTS.—
‘‘(A) ACTIVITIES.—Not later than December 
31 of each calendar year, the National Flood In-
surance Advocate shall report to the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services 
of the House of Representatives on the activities 
of the Office of the Flood Insurance Advocate 
during the fiscal year ending during such cal-
endar year. Any such report shall contain a full 
and substantive analysis of such activities, in 
addition to statistical information, and shall—
‘‘(i) identify the initiatives the Office 
of the Flood Insurance Advocate has taken 
on improving services for insureds under 
the national flood insurance program and 
responsiveness of the Federal Emergency 
Management Agency with respect to such 
initiatives; 
‘‘(ii) describe the nature of rec-
ommendations made to the Director under 
subsection (i);
‘‘(iii) contain a summary of the most 
serious problems encountered by such in-
sureds, including a description of the nature 
of such problems; 
‘‘(iv) contain an inventory of any 
items described in clauses (i), (ii), and (iii) 
for which action has been taken and the re-
sult of such action; 
‘‘(v) contain an inventory of any items 
described in clauses (i), (ii), and (iii) for 
which action remains to be completed and 
the period during which each item has re-
mained on such inventory; 
‘‘(vi) contain an inventory of any 
items described in clauses (i), (ii), and (iii) 
for which no action has been taken, the pe-
riod during which each item has remained 
on such inventory and the reasons for the 
inaction; 
‘‘(vii) identify any Flood Insurance 
Assistance Recommendation which was not 
responded to by the Director in a timely 
manner or was not followed, as specified 
under subsection (i);
‘‘(viii) contain recommendations for 
such administrative and legislative action 
as may be appropriate to resolve problems 
encountered by such insureds; 
‘‘(ix) identify areas of the law or regu-
lations relating to the national flood insur-
ance program that impose significant com-
pliance burdens on such insureds or the 
Federal Emergency Management Agency, 
including specific recommendations for rem-
edying these problems; 
‘‘(x) identify the most litigated issues 
for each category of such insureds, including 
recommendations for mitigating such dis-
putes; 
‘‘(xi) identify ways to promote the 
economy, efficiency, and effectiveness in the 
administration of the national flood insur-
ance program; 
‘‘(xii) identify fraud and abuse in the 
national flood insurance program; and 
‘‘(xiii) include such other information 
as the National Flood Insurance Advocate 
may deem advisable.
‘‘(B) DIRECT
SUBMISSION
OF
REPORT.—
Each report required under this paragraph shall 
be provided directly to the committees identified 
in subparagraph (A) without any prior review 
or comment from the Director, the Secretary of 
Homeland Security, or any other officer or em-
ployee of the Federal Emergency Management 
Agency or the Department of Homeland Secu-
rity, or the Office of Management and Budget. 
‘‘(3) 
INFORMATION
AND
ASSISTANCE
FROM 
OTHER AGENCIES.—
‘‘(A) IN GENERAL.—Upon request of the Na-
tional Flood Insurance Advocate for information 
or assistance under this section, the head of any 
Federal agency shall, insofar as is practicable 
and not in contravention of any statutory re-
striction or regulation of the Federal agency 
from which the information is requested, furnish 
to the National Flood Insurance Advocate, or to 
an authorized designee of the National Flood In-
surance Advocate, such information or assist-
ance. 
‘‘(B) REFUSAL TO COMPLY.—Whenever in-
formation or assistance requested under this sub-
section is, in the judgment of the National Flood
Insurance Advocate, unreasonably refused or not 
provided, the National Flood Insurance Advocate 
shall report the circumstances to the Director 
without delay. 
‘‘(f) COMPLIANCE WITH GAO STANDARDS.—In car-
rying out the responsibilities established under this section, 
the National Flood Insurance Advocate shall—
‘‘(1) comply with standards established by the 
Comptroller General of the United States for audits 
of Federal establishments, organizations, programs, 
activities, and functions; 
‘‘(2) establish guidelines for determining when it 
shall be appropriate to use non-Federal auditors; 
‘‘(3) take appropriate steps to assure that any 
work performed by non-Federal auditors complies 
with the standards established by the Comptroller 
General as described in paragraph (1); and 
‘‘(4) take the necessary steps to minimize the 
publication of proprietary and trade secrets informa-
tion. 
‘‘(g) PERSONNEL ACTIONS.—
‘‘(1) IN GENERAL.—The National Flood Insur-
ance Advocate shall have the responsibility and au-
thority to—
‘‘(A) appoint regional flood insurance advo-
cates in a manner that will provide appropriate 
coverage based upon regional flood insurance 
program participation; and 
‘‘(B) hire, evaluate, and take personnel ac-
tions (including dismissal) with respect to any 
employee of any regional office of a flood insur-
ance advocate described in subparagraph (A). 
‘‘(2) CONSULTATION.—The National Flood In-
surance Advocate may consult with the appropriate 
supervisory personnel of the Federal Emergency Man-
agement Agency in carrying out the National Flood 
Insurance Advocate’s responsibilities under this sub-
section. 
‘‘(h) OPERATION OF REGIONAL OFFICES.—
‘‘(1) IN GENERAL.—Each regional flood insur-
ance advocate appointed pursuant to subsection (d)—
‘‘(A) shall report to the National Flood In-
surance Advocate or delegate thereof; 
‘‘(B) may consult with the appropriate su-
pervisory personnel of the Federal Emergency 
Management Agency regarding the daily oper-
ation of the regional office of the flood insurance 
advocate;
‘‘(C) shall, at the initial meeting with any 
insured under the national flood insurance pro-
gram seeking the assistance of a regional office 
of the flood insurance advocate, notify such in-
sured that the flood insurance advocate offices 
operate independently of any other Federal 
Emergency Management Agency office and re-
port directly to Congress through the National 
Flood Insurance Advocate; and 
‘‘(D) may, at the flood insurance advocate’s 
discretion, not disclose to the Director contact 
with, or information provided by, such insured. 
‘‘(2) MAINTENANCE
OF
INDEPENDENT
COMMU-
NICATIONS.—Each regional office of the flood insur-
ance advocate shall maintain a separate phone, fac-
simile, and other electronic communication access. 
‘‘(i) FLOOD INSURANCE ASSISTANCE RECOMMENDA-
TIONS.—
‘‘(1) AUTHORITY TO ISSUE.—Upon application 
filed by a qualified insured with the Office of the 
Flood Insurance Advocate (in such form, manner, 
and at such time as the Director shall by regulation 
prescribe), the National Flood Insurance Advocate 
may issue a Flood Insurance Assistance Rec-
ommendation, if the Advocate finds that the qualified
insured is suffering a significant hardship, such as a 
significant delay in resolving claims where the in-
sured is incurring significant costs as a result of such 
delay, or where the insured is at risk of adverse ac-
tion, including the loss of property, as a result of the 
manner in which the flood insurance laws are being 
administered by the Director. 
‘‘(2) TERMS OF A FLOOD INSURANCE ASSISTANCE 
RECOMMENDATION.—The terms of a Flood Insurance 
Assistance Recommendation may recommend to the 
Director that the Director, within a specified time pe-
riod, cease any action, take any action as permitted 
by law, or refrain from taking any action, including 
the payment of claims, with respect to the qualified 
insured under any other provision of law which is 
specifically described by the National Flood Insurance 
Advocate in such recommendation. 
‘‘(3) DIRECTOR RESPONSE.—Not later than 15 
days after the receipt of any Flood Insurance Assist-
ance Recommendation under this subsection, the Di-
rector shall respond in writing as to—
‘‘(A) whether such recommendation was fol-
lowed; 
‘‘(B) why such recommendation was or was 
not followed; and
‘‘(C) what, if any, additional actions were 
taken by the Director to prevent the hardship in-
dicated in such recommendation. 
‘‘(4) RESPONSIBILITIES OF DIRECTOR.—The Di-
rector shall establish procedures requiring a formal 
response consistent with the requirements of para-
graph (3) to all recommendations submitted to the 
Director by the National Flood Insurance Advocate 
under this subsection. 
‘‘(j) REPORTING
OF POTENTIAL CRIMINAL VIOLA-
TIONS.—In carrying out the duties and responsibilities es-
tablished under this section, the National Flood Insurance 
Advocate shall report expeditiously to the Attorney General 
whenever the National Flood Insurance Advocate has rea-
sonable grounds to believe there has been a violation of Fed-
eral criminal law. 
‘‘(k) COORDINATION.—
‘‘(1) WITH OTHER FEDERAL AGENCIES.—In car-
rying out the duties and responsibilities established 
under this section, the National Flood Insurance Ad-
vocate—
‘‘(A) shall give particular regard to the ac-
tivities of the Inspector General of the Depart-
ment of Homeland Security with a view toward
avoiding duplication and insuring effective co-
ordination and cooperation; and 
‘‘(B) may participate, upon request of the 
Inspector General of the Department of Home-
land Security, in any audit or investigation con-
ducted by the Inspector General. 
‘‘(2) WITH
STATE
REGULATORS.—In carrying 
out any investigation or audit under this section, the 
National Flood Insurance Advocate shall coordinate 
its activities and efforts with any State insurance au-
thority that is concurrently undertaking a similar or 
related investigation or audit. 
‘‘(3) AVOIDANCE OF REDUNDANCIES IN THE RES-
OLUTION OF PROBLEMS.—In providing any assist-
ance to a policyholder pursuant to paragraphs (1) 
and (2) of subsection (b), the National Flood Insur-
ance Advocate shall consult with the Director to 
eliminate, avoid, or reduce any redundancies in ac-
tions that may arise as a result of the actions of the 
National Flood Insurance Advocate and the claims 
appeals process described under section 62.20 of title 
44, Code of Federal Regulations. 
‘‘(l) AUTHORITY OF THE DIRECTOR TO LEVY PEN-
ALTIES.—The Director and the Advocate shall establish pro-
cedures to take appropriate action against an insurance
company, including monetary penalties and removal or 
suspension from the program, when a company refuses to 
cooperate with an investigation or audit under this section 
or where a finding has been made of improper conduct. 
‘‘(m) DEFINITIONS.—For purposes of this subsection: 
‘‘(1) ASSOCIATED ENTITY.—The term ‘associated 
entity’ means any person, corporation, or other legal 
entity that contracts with the Director or an insur-
ance company to provide adjustment services, benefits 
calculation services, claims services, processing serv-
ices, or record keeping services in connection with 
standard flood insurance policies made available 
under the national flood insurance program. 
‘‘(2) INSURANCE COMPANY.—The term ‘insurance 
company’ refers to any property and casualty insur-
ance company that is authorized by the Director to 
participate in the Write Your Own program under 
the national flood insurance program. 
‘‘(3) NATIONAL FLOOD INSURANCE ADVOCATE.—
The term ‘National Flood Insurance Advocate’ in-
cludes any designee of the National Flood Insurance 
Advocate. 
‘‘(4) QUALIFIED INSURED.—The term ‘qualified 
insured’ means an insured under coverage provided
under the national flood insurance program under 
this title. 
‘‘(n) FUNDING.—Pursuant to section 1310(a)(8), the 
Director may use amounts from the National Flood Insur-
ance Fund to fund the activities of the Office of the Flood 
Advocate in each of fiscal years 2009 through 2014, except 
that the amount so used in each such fiscal year may not 
exceed $5,000,000 and shall remain available until ex-
pended. Notwithstanding any other provision of this title, 
amounts made available pursuant to this subsection shall 
not be subject to offsetting collections through premium 
rates for flood insurance coverage under this title.’’. 
SEC. 132. STUDIES AND REPORTS. 
(a) REPORT ON EXPANDING THE NATIONAL FLOOD IN-
SURANCE PROGRAM.—Not later than 1 year after the date 
of the enactment of this title, the Comptroller General of 
the United States shall conduct a study and submit a report 
to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of 
the House of Representatives, on—
(1) the number of flood insurance policy holders 
currently insuring—
(A) a residential structure up to the max-
imum available coverage amount, as established
in section 61.6 of title 44, Code of Federal Regu-
lations, of—
(i) $250,000 for the structure; and 
(ii) $100,000 for the contents of such 
structure; or 
(B) a commercial structure up to the max-
imum available coverage amount, as established 
in section 61.6 of title 44, Code of Federal Regu-
lations, of $500,000; 
(2) the increased losses the National Flood Insur-
ance Program would have sustained during the 2004 
and 2005 hurricane season if the National Flood In-
surance Program had insured all policyholders up to 
the maximum conforming loan limit for fiscal year 
2006 of $417,000, as established under section 
302(b)(2) of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1717(b)(2)); 
(3) the availability in the private marketplace of 
flood insurance coverage in amounts that exceed the 
current limits of coverage amounts established in sec-
tion 61.6 of title 44, Code of Federal Regulations; and 
(4) what effect, if any—
(A) raising the current limits of coverage 
amounts established in section 61.6 of title 44, 
Code of Federal Regulations, would have on the
ability of private insurers to continue providing 
flood insurance coverage; and 
(B) reducing the current limits of coverage 
amounts established in section 61.6 of title 44, 
Code of Federal Regulations, would have on the 
ability of private insurers to provide sufficient 
flood insurance coverage to effectively replace the 
current level of flood insurance coverage being 
provided under the National Flood Insurance 
Program. 
(b) REPORT OF THE DIRECTOR ON ACTIVITIES UNDER 
THE NATIONAL FLOOD INSURANCE PROGRAM.—
(1) IN GENERAL.—The Director shall, on an an-
nual basis, submit a full report on the operations, ac-
tivities, budget, receipts, and expenditures of the Na-
tional Flood Insurance Program for the preceding 12-
month period to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives. 
(2) TIMING.—Each report required under para-
graph (1) shall be submitted to the committees de-
scribed in paragraph (1) not later than 3 months fol-
lowing the end of each fiscal year. 
(3) CONTENTS.—Each report required under 
paragraph (1) shall include—
(A) the current financial condition and in-
come statement of the National Flood Insurance 
Fund established under section 1310 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4017), including—
(i) premiums paid into such Fund; 
(ii) policy claims against such Fund; 
and 
(iii) expenses in administering such 
Fund; 
(B) the number and face value of all poli-
cies issued under the National Flood Insurance 
Program that are in force; 
(C) a description and summary of the losses 
attributable to repetitive loss structures; 
(D) a description and summary of all losses 
incurred by the National Flood Insurance Pro-
gram due to—
(i) hurricane related damage; and 
(ii) nonhurricane related damage; 
(E) the amounts made available by the Di-
rector for mitigation assistance under section 
1366(e)(5) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104c(e)(5)) for the purchase 
of properties substantially damaged by flood for
that fiscal year, and the actual number of flood 
damaged properties purchased and the total cost 
expended to purchase such properties; 
(F) the estimate of the Director as to the av-
erage historical loss year, and the basis for that 
estimate; 
(G) the estimate of the Director as to the 
maximum amount of claims that the National 
Flood Insurance Program would have to expend 
in the event of a catastrophic year; 
(H) the average—
(i) amount of insurance carried per 
flood insurance policy; 
(ii) premium per flood insurance pol-
icy; and 
(iii) loss per flood insurance policy; 
and 
(I) the number of claims involving damages 
in excess of the maximum amount of flood insur-
ance available under the National Flood Insur-
ance Program and the sum of the amount of all 
damages in excess of such amount. 
(c) GAO STUDY ON PRE-FIRM STRUCTURES.—Not 
later than 1 year after the date of the enactment of this 
title, the Comptroller General of the United States shall con-
duct a study and submit a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Rep-
resentatives, on the—
(1) composition of the remaining pre-FIRM 
structures that are explicitly receiving discounted pre-
mium rates under section 1307 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4104), including 
the historical basis for the receipt of such subsidy and 
whether such subsidy has outlasted its purpose; 
(2) number and fair market value of such struc-
tures; 
(3) respective income level of each owner of such 
structure; 
(4) number of times each such structure has been 
sold since 1968, including specific dates, sales price, 
and any other information the Secretary determines 
appropriate; 
(5) total losses incurred by such structures since 
the establishment of the National Flood Insurance 
Program compared to the total losses incurred by all 
structures that are charged a nondiscounted premium 
rate; 
(6) total cost of foregone premiums since the es-
tablishment of the National Flood Insurance Pro-
gram, as a result of the subsidies provided to such 
structures; 
(7) annual cost to the taxpayer, as a result of the 
subsidies provided to such structures; 
(8) the premium income collected and the losses 
incurred by the National Flood Insurance Program as 
a result of such explicitly subsidized structures com-
pared to the premium income collected and the losses 
incurred by such Program as result of structures that 
are charged a nondiscounted premium rate, on a 
State-by-State basis; and 
(9) the most efficient way to eliminate the sub-
sidy to such structures. 
(d) GAO REVIEW
OF FEMA CONTRACTORS.—The 
Comptroller General of the United States, in conjunction 
with the Department of Homeland Security’s Inspectors 
general Office, shall—
(1) conduct a review of the 3 largest contractors 
the Director uses in administering the National Flood 
Insurance Program; and 
(2) not later than 18 months after the date of en-
actment of this title, submit a report on the findings 
of such review to the Director, the Committee on 
Banking, Housing, and Urban Affairs of the Senate,
and the Committee on Financial Services of the 
House of Representatives. 
SEC. 133. FEASIBILITY STUDY ON PRIVATE REINSURANCE. 
Not later than 1 year after the date of enactment of 
this Act, the Comptroller General of the United States shall 
conduct and submit a report to Congress on—
(1) the feasibility of requiring the Director, as 
part of carrying out the responsibilities of the Direc-
tor under the National Flood Insurance Program, to 
purchase private reinsurance or retrocessional cov-
erage, in addition to any such reinsurance coverage 
required under section 1335 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4055), to underlying 
primary private insurers for losses arising due to 
flood insurance coverage provided by such insurers; 
(2) the feasibility of repealing the reinsurance re-
quirement under such section 1335, and requiring the 
Director, as part of carrying out the responsibilities 
of the Director under the National Flood Insurance 
Program, 
to 
purchase 
private 
reinsurance 
or 
retrocessional coverage to underlying primary private 
insurers for losses arising due to flood insurance cov-
erage provided by such insurer; and
(3) the estimated total savings to the taxpayer of 
taking each such action described in paragraph (1) or 
(2). 
SEC. 134. POLICY DISCLOSURES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, in addition to any other disclosures that may 
be required, each policy under the National Flood Insurance 
Program shall state all conditions, exclusions, and other 
limitations pertaining to coverage under the subject policy, 
regardless of the underlying insurance product, in plain 
English, in boldface type, and in a font size that is twice 
the size of the text of the body of the policy. 
(b) VIOLATIONS.—Any person that violates the require-
ments of this section shall be subject to a fine of not more 
than $50,000 at the discretion of the Director. 
SEC. 135. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
Not later than 6 months after the date of the enactment 
of this Act, the Director of the Federal Emergency Manage-
ment Agency shall conduct a study and submit a report 
to the Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding the impact, effective-
ness, and feasibility of amending section 1361 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4102) to in-
clude widely used and nationally recognized building codes 
as part of the floodplain management criteria developed 
under such section, and shall determine—
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local com-
munities to administer and enforce such a building 
code requirement; 
(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
(5) the effectiveness of nationally recognized 
codes in allowing innovative materials and systems 
for flood-resistant construction; and 
(6) the feasibility and effectiveness of providing 
an incentive in lower premium rates for flood insur-
ance coverage under such Act for structures meeting 
whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage. 
TITLE II—COMMISSION ON NAT-
URAL 
CATASTROPHE 
RISK 
MANAGEMENT 
AND 
INSUR-
ANCE 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Commission on Natural 
Catastrophe Risk Management and Insurance Act of 2008’’. 
SEC. 202. FINDINGS. 
Congress finds that—
(1) Hurricanes Katrina, Rita, and Wilma, 
which struck the United States in 2005, caused, by 
some estimates, in excess of $200,000,000,000 in total 
economic losses; 
(2) many meteorologists predict that the United 
States is in a period of increased hurricane activity; 
(3) the Federal Government and State govern-
ments have provided billions of dollars to pay for 
losses from natural catastrophes, including hurri-
canes, earthquakes, volcanic eruptions, tsunamis, tor-
nados, flooding, wildfires, droughts, and other natural 
catastrophes;