HR 3121 RFS
SEC. 32. PLAN TO VERIFY MAINTENANCE OF FLOOD INSUR-
ANCE ON MISSISSIPPI AND LOUISIANA PROP-
ERTIES 
RECEIVING 
EMERGENCY 
SUPPLE-
MENTAL FUNDS. 
The Director of the Federal Emergency Management 
Agency shall develop and implement a plan to verify that 
persons receiving funds under the Homeowner Grant As-
sistance Program of the State of Mississippi or the Road 
Home Program of the State of Louisiana from amounts 
allocated to the State of Mississippi or the State of Lou-
isiana, respectively, from the Community development 
fund under the Emergency Supplemental Appropriations 
Act to Address Hurricanes in the Gulf of Mexico and Pan-
demic Influenza, 2006 (Public Law 109–148) are main-
taining flood insurance on the property for which such 
persons receive such funds as required by each such Pro-
gram. 
SEC. 33. GAO STUDY OF FACTORS AFFECTING ENROLL-
MENT IN MULTIPERIL INSURANCE PROGRAM. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study to identify and ana-
lyze factors affecting enrollment in the multiperil insur-
ance program. Such study shall include a study of the ef-
fects of the multiperil insurance program on enrollment 
and pricing of State residual property and casualty mar-
kets or plans and State catastrophe plans. 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
(b) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Comptroller General shall 
submit to Congress a report containing the conclusions of 
the study conducted under subsection (a). 
SEC. 34. NATIONAL FLOOD INSURANCE ADVOCATE; RE-
PORTS. 
Chapter II of the National Flood Insurance Act of 
1968 is amended by inserting after section 1330 (42 
U.S.C. 4041) the following new section: 
‘‘SEC. 1330A. NATIONAL FLOOD INSURANCE ADVOCATE. 
‘‘(a) ESTABLISHMENT OF POSITION.— 
‘‘(1) IN GENERAL.—There shall be in the Fed-
eral Emergency Management Agency a National 
Flood Insurance Advocate. The National Flood In-
surance Advocate shall report directly to the Direc-
tor and shall, to the extent amounts are provided 
pursuant to subsection (c), be compensated at the 
same rate as the highest rate of basic pay estab-
lished for the Senior Executive Service under section 
5382 of title 5, United States Code, or, if the Direc-
tor so determines, at a rate fixed under section 9503 
of such title. 
‘‘(2) APPOINTMENT.—The National Flood In-
surance Advocate shall be appointed by the Director 
and the flood insurance advisory committee estab-
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
lished pursuant to section 1318 (42 U.S.C. 4025) 
and without regard to the provisions of title 5, 
United States Code, relating to appointments in the 
competitive service or the Senior Executive Service. 
‘‘(3) 
QUALIFICATIONS.—An 
individual 
ap-
pointed under paragraph (2) shall have— 
‘‘(A) a background in customer service as 
well as insurance; and 
‘‘(B) experience in representing individual 
insureds. 
‘‘(4) RESTRICTION ON EMPLOYMENT.—An indi-
vidual may be appointed as the National Flood In-
surance Advocate only if such individual was not an 
officer or employee of the Federal Emergency Man-
agement Agency with duties relating to the national 
flood insurance program during the 2-year period 
ending with such appointment and such individual 
agrees not to accept any employment with the Fed-
eral Emergency Management Agency for at least 5 
years after ceasing to be the National Flood Insur-
ance Advocate. Service as an employee of the Na-
tional Flood Insurance Advocate shall not be taken 
into account in applying this paragraph. 
‘‘(5) STAFF.—To the extent amounts are pro-
vided pursuant to subsection (c), the National Flood 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
Insurance Advocate may employ such personnel as 
may be necessary to carry out the duties of the Ad-
vocate. 
‘‘(b) DUTIES.—The duties of the National Flood In-
surance Advocate shall be to conduct studies with respect 
to, and submit, the following reports: 
‘‘(1) REPORT
ON
PROBLEMS
OF
INSUREDS 
UNDER NATIONAL FLOOD INSURANCE PROGRAM.— 
Not later than the expiration of the 12-month period 
beginning on the date of the enactment of the Flood 
Insurance Reform and Modernization Act of 2007, 
the National Flood Insurance Advocate shall submit 
a report to the Congress regarding the national flood 
insurance program, which shall— 
‘‘(A) identify areas in which insureds 
under such program have problems in dealings 
with the Federal Emergency Management 
Agency relating to such program, and shall con-
tain a summary of at least 20 of the most seri-
ous problems encountered by such insureds, in-
cluding a description of the nature of such 
problems; 
‘‘(B) identify areas of the law relating to 
the flood insurance that impose significant com-
pliance burdens on such insureds or the Federal 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
Emergency Management Agency, including spe-
cific recommendations for remedying such prob-
lems; 
‘‘(C) identify the 10 most litigated issues 
for each category of such insureds, including 
recommendations for mitigating such disputes; 
‘‘(D) identify the initiatives of the Agency 
to improve services for insureds under the na-
tional flood insurance program and actions 
taken by the Agency with respect to such pro-
gram; 
‘‘(E) contain recommendations for such 
administrative and legislative action as may be 
appropriate to mitigate or resolve problems en-
countered by such insureds; and 
‘‘(F) include such other information as the 
National Flood Insurance Advocate considers 
appropriate. 
‘‘(2) REPORT ON ESTABLISHMENT OF AN OF-
FICE OF THE FLOOD INSURANCE ADVOCATE.—Not 
later than the expiration of the 6-month period be-
ginning on the date of the initial appointment of a 
National Flood Insurance Advocate under this sec-
tion, the Advocate shall submit a report to the Con-
gress regarding the feasibility and effectiveness of 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
establishing an Office of the Flood Insurance Advo-
cate, headed by the National Flood Insurance Advo-
cate, to assist insureds under the national flood in-
surance program in resolving problems with the Fed-
eral Emergency Management Agency relating to 
such program. Such report shall examine and ana-
lyze, and include recommendations regarding— 
‘‘(A) an appropriate structure in which to 
establish such an Office, and appropriate levels 
of personnel for such Office; 
‘‘(B) other appropriate functions for such 
an Office, which may include— 
‘‘(i) identifying areas in which such 
insureds have problems in dealing with the 
Agency relating to such program; 
‘‘(ii) proposing changes in the admin-
istrative practices of the Agency to resolve 
or mitigate problems encountered by such 
insureds; and 
‘‘(iii) identifying potential legislative 
changes which may be appropriate to re-
solve or mitigate such problems; 
‘‘(C) appropriate procedures for formal re-
sponse by the Director to recommendations sub-
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
mitted to the Director by the National Flood 
Insurance Advocate; 
‘‘(D) the feasibility and effectiveness of au-
thorizing the National Flood Insurance Advo-
cate to issue flood insurance assistance orders 
in cases in which the Advocate determines that 
a qualified insured is suffering or about to suf-
fer a significant hardship as a result of the 
manner in which the flood insurance laws are 
being administered or meets such other require-
ments may be appropriate, including examining 
and analyzing— 
‘‘(i) appropriate limitations on the 
scope and effect of such orders; 
‘‘(ii) an appropriate standard for de-
termining such a significant hardship; 
‘‘(iii) appropriate terms of flood insur-
ance assistance orders; and 
‘‘(iv) appropriate procedures for modi-
fying or rescinding such orders; 
‘‘(E) the feasibility and effectiveness of es-
tablishing offices of flood insurance advocates 
who report to the National Flood Insurance Ad-
vocate, including examining and analyzing— 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
‘‘(i) the appropriate coverage and geo-
graphic allocation of such offices; 
‘‘(ii) appropriate procedures and cri-
teria for referral of inquiries by insureds 
under such program to such offices; 
‘‘(iii) allowing such advocates to con-
sult with appropriate supervisory personnel 
of the Agency regarding the daily oper-
ation of the offices; and 
‘‘(iv) providing authority for such ad-
vocates not disclose to the Director contact 
with, or information provided by, such an 
insured; 
‘‘(F) appropriate methods for developing 
career paths for flood insurance advocates re-
ferred to in subparagraph (E) who may choose 
to make a career in the Office of the Flood In-
surance Advocate; and 
‘‘(G) such other issues regarding the estab-
lishment of an Office of the Flood Insurance 
Advocate as the National Flood Insurance Ad-
vocate considers appropriate. 
‘‘(3) DIRECT SUBMISSION OF REPORTS.—Each 
report required under paragraph (2) shall be pro-
vided directly to the Congress by the National Flood 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
Insurance Advocate without any prior review or com-
ment from the Director, the Secretary of Homeland 
Security, or any other officer or employee of the 
Federal Emergency Management Agency or the De-
partment of Homeland Security, or the Office of 
Management and Budget. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated for fiscal year 2008 and 
each fiscal year thereafter such sums as may be necessary 
to carry out this section.’’. 
SEC. 35. REQUIREMENTS RELATING TO WINDSTORM AND 
FLOOD. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
‘‘(d) REQUIREMENTS FOR WRITE-YOUR-OWN INSUR-
ERS RELATING TO WINDSTORM AND FLOOD.—The Direc-
tor may not utilize the facilities or services of any insur-
ance company or other insurer to offer flood insurance 
coverage under this title unless such company or insurer 
enters into a written agreement with the Director that 
provides as follows: 
‘‘(1) PROHIBITION
ON
EXCLUSION
OF
WIND 
DAMAGE COVERAGE.—The agreement shall prohibit 
the company or insurer from including, in any policy 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
provided by the company or insurer for homeowners’ 
insurance coverage or coverage for damage from 
windstorms, any provision that excludes coverage for 
wind or other damage solely because flooding also 
contributed to damage to the insured property. 
‘‘(2) FIDUCIARY RESPONSIBILITY.—The agree-
ment shall provide that the company or insurer— 
‘‘(A) has a fiduciary duty with respect to 
the Federal taxpayers; 
‘‘(B) in selling and servicing policies for 
flood insurance coverage under this title and 
adjusting claims under such coverage, will act 
in the best interests the national flood insur-
ance program rather than in the interests of the 
company or insurer; and 
‘‘(C) will provide written guidance to each 
insurance agent and claims adjuster for the 
company or insurer setting forth the terms of 
the agreement pursuant to subparagraphs (A) 
and (B).’’. 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
SEC. 36. NOTATIONS ON FLOOD INSURANCE RATE MAPS 
FOR AREAS PROTECTED AGAINST 100-YEAR 
AND 500-YEAR FLOODS BY CERTIFIED FLOOD 
CONTROL STRUCTURE. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1361A (42 U.S.C. 4102a) the 
following new section: 
‘‘SEC. 1362. NOTATIONS ON FLOOD INSURANCE RATE MAPS 
FOR AREAS PROTECTED AGAINST 100-YEAR 
AND 500-YEAR FLOODS BY CERTIFIED FLOOD 
CONTROL STRUCTURE. 
‘‘(a) 100-YEAR FLOODPLAIN.—The Director may 
publish, through the publication of a national flood insur-
ance program rate map, a note to designate areas pro-
tected against at least the 100-year flood by a certified 
flood control structure which shall read as follows: 
‘NOTE: This area is shown as being protected from at 
least the 1-percent-annual-chance flood hazard by levee, 
dike, or other structure. Overtopping or failure of any 
flood control structure is possible. Property owners are en-
couraged to evaluate their flood risk, based on full and 
accurate information, and to consider flood insurance cov-
erage as appropriate.’. 
‘‘(b) 500-YEAR FLOODPLAIN.—The Director may 
publish, through the issuance of a national flood insurance 
program rate map, a note to designate areas protected 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS
HR 3121 RFS
against at least the 500-year flood by a certified flood con-
trol structure which shall read as follows: ‘NOTE: This 
area is shown as being protected from at least the 0.2- 
percent-annual-chance flood hazard by levee, dike, or other 
structure. Overtopping or failure of any flood control 
structure is possible. Property owners are encouraged to 
evaluate their flood risk, based on full and accurate infor-
mation, and to consider flood insurance coverage as appro-
priate.’. 
‘‘(c) EFFECT OF NOTES.—The publication of a note 
under subsection (a) or (b) shall not be considered a re-
quirement of participation in the national flood insurance 
program.’’. 
Passed the House of Representatives September 27, 
2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
VerDate Aug 31 2005 
22:13 Sep 28, 2007
Jkt 059200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H3121.RFS
H3121
mstockstill on PROD1PC66 with BILLS