Flood Insurance Pricing Transparency Act
Bill: S.3829 | Sponsor: Sen. Cassidy, Bill (R-LA)
Policy area: Finance and Financial Sector

Summary:
Flood Insurance Pricing Transparency Act
This bill directs the Federal Emergency Management Agency (FEMA) to publish all formulas used by FEMA to calculate mitigation credits available to properties insured under the National Flood Insurance Program (NFIP). (Under current NFIP rating methodology, individuals can receive premium credits for mitigation activity on their property such as installing flood openings, elevating the structure, and elevating machinery and equipment above the lowest floor.) FEMA must also develop a publicly available tool that estimates NFIP premium rates based on user inputs, including the change in rates as a result of mitigation activities.

To require the Administrator of the Federal Emergency Management Agency 
  to make publicly available information regarding the calculation of 
  premiums under the National Flood Insurance Program, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Insurance Pricing Transparency 
Act''.

SEC. 2. PREMIUM CALCULATOR.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Federal Emergency Management Agency;
            (2) the term ``covered property'' means a property for 
        which insurance is provided under the National Flood Insurance 
        Program;
            (3) the term ``National Flood Insurance Program'' means the 
        program established under the National Flood Insurance Act of 
        1968 (42 U.S.C. 4001 et seq.); and
            (4) the term ``premium rates'' means chargeable premium 
        rates prescribed under section 1308 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015).
    (b) Requirements.--The Administrator shall--
            (1) not later than 60 days after the date of enactment of 
        this Act, make public all formulas used by the Administrator to 
        calculate the value of mitigation credits provided with respect 
        to covered properties, including, at a minimum, credits for--
                    (A) installing a flood opening;
                    (B) elevating such a property onto a post, pile, or 
                pier; and
                    (C) elevating machinery and equipment above the 
                lowest floor of such a property; and
            (2) not later than 90 days after the date of enactment of 
        this Act, establish a tool that allows members of the public to 
        estimate premium rates for covered properties under the Risk 
        Rating 2.0 program (or any similar methodology) within a 
        reasonable margin of error based on user inputs, which shall 
        include a mechanism for determining how the premium rates for a 
        covered property would change based on taking a particular 
        mitigation action, including an action described in 
        subparagraph (A), (B), or (C) of paragraph (1) with respect to 
        the covered property.
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