NFIP Underwater Properties Act
Bill: S.2833 | Sponsor: Sen. Lee, Mike (R-UT)
Policy area: Finance and Financial Sector

Summary:
NFIP Underwater Properties Act
This bill requires that the premium rate for flood insurance provided through the National Flood Insurance Program (NFIP) for structures that have incurred repetitive flood-related damage 1) be based on sound actuarial principles, and 2) not be subject to any rate caps if the structure is located in a special flood hazard area. Under current law, certain types of property are not charged actuarial rates for NFIP coverage.

To amend the National Flood Insurance Act of 1968 to address the 
premium rates for certain properties 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 ``NFIP Underwater Properties Act''.

SEC. 2. EXTREME REPETITIVE LOSS STRUCTURES.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by adding at the end the following:

``SEC. 1326. EXTREME REPETITIVE LOSS STRUCTURES.

    ``(a) Definition.--In this section, the term `extreme repetitive 
loss structure' means a structure that--
            ``(1) is covered under a contract for flood insurance made 
        available under this title; and
            ``(2) has incurred flood-related damage for which, during a 
        10-year period, not fewer than 2 separate claims payments have 
        been made under flood insurance coverage under this title, with 
        the cumulative amount of such claims exceeding 120 percent of 
        the assessed value of the structure, as of the date on which 
        the first such claim payment is made.
    ``(b) Treatment of Structures.--Notwithstanding any other provision 
of this title, if, after the date on which a structure qualifies as an 
extreme repetitive loss structure, the structure incurs flood-related 
damage for which a claim under flood insurance coverage under this 
title is filed with the Administrator--
            ``(1) the Administrator shall assess the claim in 
        accordance with the requirements of this title and any other 
        applicable provision of law or regulation; and
            ``(2) after resolution of the claim--
                    ``(A) the Administrator shall prescribe a 
                chargeable risk premium rate with respect to the 
                structure that represents an actuarially sound rate; 
                and
                    ``(B) the rate described in subparagraph (A) shall 
                not be subject to the limitation under section 
                1308(e)(1), unless--
                            ``(i) the Administrator--
                                    ``(I) performs an examination of 
                                the structure; and
                                    ``(II) determines that the 
                                structure is not located in an area 
                                having special flood hazards; or
                            ``(ii) the most recent flood insurance rate 
                        map published by the Administrator does not 
                        indicate that the structure is located in an 
                        area having special flood hazards.''.
                                 <all>