Title: National Flood Insurance Program Administrative Reform Act of 2017
Policy area: Finance and Financial Sector

Summary:
National Flood Insurance Program Administrative Reform Act of 2017
This bill amends the National Flood Insurance Act of 1968 to direct the Federal Emergency Management Agency (FEMA) to revise the appeals process for National Flood Insurance Program (NFIP) policyholders seeking review of a flood insurance claim denial by their insurer. The bill also establishes penalties for "Write Your Own" companies that knowingly underpay NFIP claims. (A Write Your Own company writes and services federal standard flood insurance policies in its own name.) Civil enforcement actions, penalties, and suspension from the program may result from fraud and false statements in connection with a flood insurance claim under NFIP.
Claims under NFIP must be approved or denied no later than 90 days after the claim is made, with provisions for an extension in extraordinary cases.
The bill gives FEMA litigation oversight, strategy authority, and substitution powers in litigation conducted by Write Your Own companies. FEMA may not hire in connection with NFIP any disbarred or suspended attorney.
FEMA must make additional coverage available under its Increased Cost of Compliance program. Currently, the program provides coverage to insure the cost of mitigating future flood damage to an NFIP-insured structure that has been substantially or repetitively damaged by floods.
This bill directs FEMA to ensure sufficient staff for the Flood Insurance Advocate, authorizes FEMA to credit reserve funds to the National Flood Insurance Fund, and establishes pilot programs and committees.
The Government Accountability Office must report on claims adjustment practices under NFIP and NFIP coverage of earth movement and subsidence.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2875 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2875

To make administrative reforms to the National Flood Insurance Program 
to increase fairness and accuracy and protect the taxpayer from program 
                fraud and abuse, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2017

Ms. Velazquez introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To make administrative reforms to the National Flood Insurance Program 
to increase fairness and accuracy and protect the taxpayer from program 
                fraud and abuse, 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 ``National Flood Insurance Program 
Administrative Reform Act of 2017''.

SEC. 2. INCREASED COST OF COMPLIANCE COVERAGE.

    (a) Coverage of Properties at High Risk of Future Flood Damage.--
Subsection (b) of section 1304 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011(b)) is amended--
            (1) in paragraph (4), by redesignating subparagraphs (A) 
        through (D) as clauses (i) through (iv), respectively, and 
        realigning such clauses, as so redesignated, so as to be 
        indented 6 ems from the left margin;
            (2) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and realigning 
        such subparagraphs, as so redesignated, so as to be indented 4 
        ems from the left margin;
            (3) by striking the subsection designation and all that 
        follows through ``The national'' and inserting the following:
    ``(b) Additional Coverage for Compliance With Land Use and Control 
Measures.--
            ``(1) Authority; eligible properties.--The national'';
            (4) in subparagraph (C) (as so redesignated by paragraph 
        (2) of this subsection), by striking ``Fund'' and all that 
        follows and inserting ``Fund to require the implementation of 
        such measures;'';
            (5) in subparagraph (D)(iv) (as so redesignated by 
        paragraphs (1) and (2) of this subsection), by striking the 
        period at the end and inserting a semicolon; and
            (6) by adding at the end the following new subparagraphs:
                    ``(E) properties that have been identified by the 
                Administrator, or by a community in accordance with 
                such requirements as the Administrator shall establish, 
                as at a high risk of future flood damage; and
                    ``(F) properties that are located within an area 
                identified pursuant to section 1361(e)(1)(A) (42 U.S.C. 
                4102(e)(1)(A)) by a covered community (as such term is 
                defined in paragraph (3) of such section 1361(e)).''.
    (b) Coverage Amount.--Section 1304(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
            (1) in paragraph (1) (as so designated by subsection (a)(3) 
        of this section), by striking the last sentence (relating to a 
        surcharge); and
            (2) by adding at the end the following new paragraph:
            ``(2) Coverage amount.--
                    ``(A) Primary coverage.--Each policy for flood 
                insurance coverage made available under this title 
                shall provide coverage under this subsection having an 
                aggregate liability for any single property of $30,000.
                    ``(B) Enhanced coverage.--The Administrator shall 
                make additional coverage available under this 
                subsection, in excess of the limit specified in 
                subparagraph (A), having an aggregate liability for any 
                single property of up to $60,000.''.
    (c) Amount of Surcharge.--Subsection (b) of section 1304 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), as amended by 
the preceding provisions of this section, is further amended by adding 
at the end the following new paragraph:
            ``(3) Surcharge for coverage.--
                    ``(A) Primary coverage.--The Administrator shall 
                impose a surcharge on each insured of such amount per 
                policy as the Administrator determines is appropriate 
                to provide cost of compliance coverage in accordance 
                with paragraph (2)(A).
                    ``(B) Enhanced coverage.--For each flood policy for 
                flood insurance coverage under this title under which 
                additional cost of compliance coverage is provided 
                pursuant to paragraph (2)(B), the Administrator shall 
                impose a surcharge, in addition to the surcharge under 
                subparagraph (A) of this paragraph, in such amount as 
                the Administrator determines is appropriate for the 
                amount of such coverage provided.''.
    (d) Use of Certain Materials.--Subsection (b) of section 1304 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), as 
amended by the preceding provisions of this section, is further amended 
by adding at the end the following new paragraph:
            ``(4) Use of certain materials.--The Administrator shall 
        require that any measures implemented using amounts made 
        available from coverage provided pursuant to this subsection be 
        carried out using materials, identified by the Administrator, 
        that minimize the impact of flooding on the usability of the 
        covered property and reduce the duration that flooding renders 
        the property unusable or uninhabitable.''.
    (e) Continued Flood Insurance Requirement.--Subsection (b) of 
section 1304 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011(b)), as amended by the preceding provisions of this section, is 
further amended by adding at the end the following new paragraph:
            ``(5) Continued flood insurance requirement.--The 
        Administrator may require, as a condition of providing cost of 
        compliance coverage under this subsection for a property, that 
        the owner of the property enter into such binding agreements as 
        the Administrator considers necessary to ensure that the owner 
        of the property (and any subsequent owners) will maintain flood 
        insurance coverage under this title for the property in such 
        amount, and at all times during a period having such duration, 
        as the Administrator considers appropriate to carry out the 
        purposes of this subsection.''.

SEC. 3. PILOT PROGRAM FOR PROPERTIES WITH PREEXISTING CONDITIONS.

    Section 1311 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4018) is amended by adding at the end the following new subsection:
    ``(c) Pilot Program for Investigation of Preexisting Structural 
Conditions.--
            ``(1) Voluntary program.--The Administrator shall carry out 
        a pilot program under this subsection to provide for companies 
        participating in the Write Your Own program (as such term is 
        defined in section 1370(a) (42 U.S.C. 4121(a))) to investigate 
        preexisting structural conditions of insured properties and 
        potentially insured properties that could result in the denial 
        of a claim under a policy for flood insurance coverage under 
        this title in the event of a flood loss to such property. 
        Participation in the pilot program shall be voluntary on the 
        part of Write Your Own companies.
            ``(2) Investigation of properties.--Under the pilot program 
        under this subsection, a Write Your Own company participating 
        in the program shall--
                    ``(A) provide in policies for flood insurance 
                coverage under this title covered by the program that, 
                upon the request of the policyholder, the company shall 
                provide for--
                            ``(i) an investigation of the property 
                        covered by such policy, using common methods, 
                        to determine whether preexisting structural 
                        conditions are present that could result in the 
                        denial of a claim under such policy for flood 
                        losses; and
                            ``(ii) if such investigation is not 
                        determinative, an on-site inspection of the 
                        property to determine whether such preexisting 
                        structural conditions are present;
                    ``(B) upon completion of an investigation or 
                inspection pursuant to subparagraph (A) that determines 
                that such a preexisting structural condition is present 
                or absent, submit a report to the policyholder and 
                Administrator describing the condition; and
                    ``(C) impose a surcharge on each policy described 
                in subparagraph (A) in such amount that the 
                Administrator determines is appropriate to cover the 
                costs of investigations and inspections performed 
                pursuant to such policies and reimburse Write Your Own 
                companies participating in the program under this 
                subsection for such costs.
            ``(3) Interim report.--Not later than December 31, 2021, 
        the Administrator shall submit a report to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        describing the operation of the pilot program to that date.
            ``(4) Sunset.--The Administrator may not provide any policy 
        for flood insurance described in paragraph (2)(A) after 
        December 31, 2022.
            ``(5) Final report.--Not later than March 31, 2023, the 
        Administrator shall submit a final report regarding the pilot 
        program under this section to the Committee on Financial 
        Services of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate. The report 
        shall include any findings and recommendations of the 
        Administrator regarding the pilot program.''.

SEC. 4. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL FLOOD 
              INSURANCE PROGRAM.

    Part C of chapter 2 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4081 et seq.) is amended by adding at the end the following new 
section:

``SEC. 1349. PENALTIES FOR FRAUD AND FALSE STATEMENTS IN THE NATIONAL 
              FLOOD INSURANCE PROGRAM.

    ``(a) Prohibited Acts.--A person shall not knowingly make a false 
or misleading statement, production, or submission in connection with 
the proving or adjusting of a claim for flood insurance coverage made 
available under this Act. Such prohibited acts include--
            ``(1) knowingly forging an engineering report, claims 
        adjustment report or technical assistance report used to 
        support a claim determination;
            ``(2) knowingly making any materially false, fictitious, or 
        fraudulent statement or representation in an engineering 
        report, claims adjustment report, or technical assistance 
        report to support a claim determination;
            ``(3) knowingly submitting a materially false, fictitious, 
        or fraudulent claim.
    ``(b) Civil Enforcement.--The Attorney General may bring a civil 
action for such relief as may be appropriate whenever it appears that 
any person has violated or is about to violate any provision of this 
section. Such action may be brought in an appropriate United States 
district court.
    ``(c) Referral to Attorney General.--The Administrator shall 
expeditiously refer to the Attorney General for appropriate action any 
evidence developed in the performance of functions under this Act that 
may warrant consideration for criminal or civil prosecution.
    ``(d) Penalties.--
            ``(1) Civil monetary penalty.--Any person who violates 
        subsection (a) shall be subject to a civil penalty of not more 
        than $10,000 for each violation, which shall be deposited into 
        the National Flood Insurance Fund established under section 
        1310 (42 U.S.C. 4017).
            ``(2) Suspension and debarment.--Any person who violates 
        subsection (a) shall not be eligible, for a period of not less 
        than 2 years and not to exceed 5 years, to--
                    ``(A) receive flood insurance coverage pursuant to 
                this title; or
                    ``(B) provide services in connection with the 
                selling, servicing, or handling of claims for flood 
                insurance policies provided pursuant to this title.
            ``(3) Other penalties.--The penalties provided for in this 
        subsection shall be in addition to any other civil or criminal 
        penalty available under law.''.

SEC. 5. ENHANCED POLICYHOLDER APPEALS PROCESS RIGHTS.

    (a) Establishment.--Part C of chapter II of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new section:

``SEC. 1350. APPROVAL OF DECISIONS RELATING TO FLOOD INSURANCE 
              COVERAGE.

    ``(a) In General.--The Administrator shall establish an appeals 
process to enable holders of a flood insurance policy provided under 
this title to appeal the decisions of their insurer, with respect to 
the disallowance, in whole or in part, of any claims for proved and 
approved losses covered by flood insurance. Such appeals shall be 
limited to the claim or portion of the claim disallowed by the insurer.
    ``(b) Appeal Decision.--Upon a decision in an appeal under 
subsection (a), the Administrator shall provide the policyholder with a 
written appeal decision. The appeal decision shall explain the 
Administrator's determination to uphold or overturn the decision of the 
flood insurer. The Administrator may direct the flood insurer to take 
action necessary to resolve the appeal, to include re-inspection, re-
adjustment, or payment, as appropriate.
    ``(c) Rules of Construction.--This section shall not be construed 
as--
            ``(1) making the Federal Emergency Management Agency or the 
        Administrator a party to the flood insurance contract; or
            ``(2) creating any action or remedy not otherwise provided 
        by this title.''.
    (b) Repeal.--Section 205 of the Bunning-Blumenauer-Bereuter Flood 
Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is hereby repealed.

SEC. 6. DEADLINE FOR APPROVAL OF CLAIMS.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019) is amended--
            (1) in subsection (a), by striking ``The Administrator'' 
        and inserting ``Subject to other provisions of this section, 
        the Administrator''; and
            (2) by adding at the end the following new subsection:
    ``(d) Deadline for Approval of Claims.--
            ``(1) In general.--The Administrator shall provide that, in 
        the case of any claim for damage to or loss of property under 
        flood insurance coverage made available under this title, a 
        final determination regarding approval of a claim for payment 
        or disapproval of the claim be made, and notification of such 
        determination be provided to the insured making such claim, not 
        later than the expiration of the 90-day period (as such period 
        may be extended pursuant to paragraph (2)) beginning upon the 
        day on which such claim was made. Payment of approved claims 
        shall be made as soon as possible after such approval.
            ``(2) Extension of deadline.--The Administrator shall 
        provide that the period referred to in paragraph (1) may be 
        extended by a single additional period of 15 days in cases 
        where extraordinary circumstances are demonstrated. The 
        Administrator shall, by regulation, establish criteria for 
        demonstrating such extraordinary circumstances and for 
        determining to which claims such extraordinary circumstances 
        apply.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply to any claim under flood insurance coverage made available under 
the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
pending on the date of the enactment of this Act and any claims made 
after such date of enactment.

SEC. 7. LITIGATION PROCESS OVERSIGHT AND REFORM.

    (a) In General.--Part C of chapter II of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new section:

``SEC. 1351. OVERSIGHT OF LITIGATION.

    ``(a) Oversight.--The Administrator shall monitor and oversee 
litigation conducted by Write Your Own companies arising under 
contracts for flood insurance sold pursuant to this title, to ensure 
that--
            ``(1) litigation expenses are reasonable, appropriate, and 
        cost-effective; and
            ``(2) Write Your Own companies comply with guidance and 
        procedures established by the Administrator regarding the 
        conduct of litigation.
    ``(b) Denial of Reimbursement for Expenses.--The Administrator may 
deny reimbursement for litigation expenses that are determined to be 
unreasonable, excessive, contrary to guidance issued by the 
Administrator, or outside the scope of any arrangement entered into 
with a Write Your Own company.
    ``(c) Litigation Strategy.--The Administrator may direct litigation 
strategy for claims arising under a contract for flood insurance sold 
by a Write Your Own company.
    ``(d) Substitution.--If at any time, the Administrator determines 
there is a conflict of interest between the Write Your Own company and 
the National Flood Insurance Program, or it is in the best interest of 
the United States, the Administrator may promptly take any necessary 
action to be substituted for the WYO company in any action arising out 
of any claim arising under a contract for flood insurance sold by a 
Write Your Own company.''.
    (b) Implementation.--The Administrator of the Federal Emergency 
Management Agency shall initiate compliance with section 1352(d) of the 
National Flood Insurance Act of 1968, as added by the amendment made by 
subsection (a) of this section, not later than the expiration of the 
12-month period beginning on the date of the enactment of this Act.

SEC. 8. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
section:

``SEC. 1352. PROHIBITION ON HIRING DISBARRED ATTORNEYS.

    ``The Administrator may not at any time newly employ in connection 
with the flood insurance program under this title any attorney who has 
been suspended or disbarred by any court, bar, or Federal or State 
agency to which the individual was previously admitted to practice.''.

SEC. 9. UNDERPAYMENT OF CLAIMS BY WRITE YOUR OWN COMPANIES.

    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:
    ``(f) Underpayment of Claims by WYO Companies.--The Administrator 
shall establish penalties for companies participating in the Write Your 
Own program knowingly underpaying claims for losses covered by flood 
insurance made available under this title, which penalties shall be 
commensurate, with respect to the amount of the penalty, to the 
penalties applicable to overpayment of such claims by a similar amount 
by such companies.''.

SEC. 10. TECHNICAL ASSISTANCE REPORTS.

    (a) Use.--Section 1312 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4019), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new subsection:
    ``(e) Use of Technical Assistance Reports.--When adjusting claims 
for any damage to or loss of property which is covered by flood 
insurance made available under this title, the Administrator may rely 
upon technical assistance reports, as such term is defined in section 
1312A, only if such reports are final and are prepared in compliance 
with applicable State and Federal laws regarding professional licensure 
and conduct.''.
    (b) Disclosure.--The National Flood Insurance Act of 1968 is 
amended by inserting after section 1312 (42 U.S.C. 4019) the following 
new section:

``SEC. 1312A. DISCLOSURE OF TECHNICAL ASSISTANCE REPORTS.

    ``(a) In General.--Notwithstanding section 552a of title 5, United 
States Code, upon request by a policyholder, the Administrator shall 
provide a true, complete, and unredacted copy of any technical 
assistance report that the Administrator relied upon in adjusting and 
paying for any damage to or loss of property insured by the 
policyholder and covered by flood insurance made available under this 
title. Such disclosures shall be in addition to any other right of 
disclosure otherwise made available pursuant such section 552a or any 
other provision of law.
    ``(b) Direct Disclosure by Write Your Own Companies and Direct 
Servicing Agents.--A Write Your Own company or direct servicing agent 
in possession of a technical assistance report subject to disclosure 
under subsection (a) may disclose such technical assistance report 
without further review or approval by the Administrator.
    ``(c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Policyholder.--The term `policyholder' means a person 
        or persons shown as an insured on the declarations page of a 
        policy for flood insurance coverage sold pursuant to this 
        title.
            ``(2) Technical assistance report.--The term `technical 
        assistance report' means a report created for the purpose of 
        furnishing technical assistance to an insurance claims adjuster 
        assigned by the National Flood Insurance Program, including by 
        engineers, surveyors, salvors, architects, and certified public 
        accounts.''.

SEC. 11. IMPROVED DISCLOSURE REQUIREMENT FOR STANDARD FLOOD INSURANCE 
              POLICIES.

    Section 100234 of the Biggert-Waters Flood Insurance Reform Act of 
2012 (42 U.S.C. 4013a) is amended by adding at the end the following 
new subsections:
    ``(c) Disclosure of Coverage.--
            ``(1) Disclosure sheet.--Each policy under the National 
        Flood Insurance Program shall include a disclosure sheet that 
        sets forth, in plain language--
                    ``(A) the definition of the term `flood' for 
                purposes of coverage under the policy;
                    ``(B) a description of what type of flood forces 
                are necessary so that losses from an event are covered 
                under the policy, including overflow of inland or tidal 
                waves, unusual and rapid accumulation or runoff of a 
                surface any source, and mudflow;
                    ``(C) a statement of the types and characteristics 
                of losses that are not covered under the policy;
                    ``(D) a summary of total cost and amount of 
                insurance coverage, and any other information relating 
                to such coverage required to be disclosed under section 
                1308(l) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4015(l));
                    ``(E) a statement that the disclosure sheet 
                provides general information about the policyholder's 
                standard flood insurance policy;
                    ``(F) a statement that the standard flood insurance 
                policy, together with the application, endorsements, 
                and declarations page, make up the official contract 
                and are controlling in the event that there is any 
                difference between the information on the disclosure 
                sheet and the information in the policy; and
                    ``(G) a statement that if the policyholder has any 
                questions regarding information in the disclosure sheet 
                or policy he or she should contact the entity selling 
                the policy on behalf of the Program, together with 
                contact information sufficient to allow the 
                policyholder to contact such entity.
            ``(2) Acknowledgment sheet.--Each policy under the National 
        Flood Insurance Program shall include an acknowledgment sheet 
        that sets forth, in plain language--
                    ``(A) a statement of whether or not there is a 
                basement in the property to be covered by the policy;
                    ``(B) a statement of whether or not the policy 
                provides coverage for the contents of the property 
                covered by the policy;
                    ``(C) a statement that the standard flood insurance 
                policy, together with the application, endorsements, 
                and declarations page, make up the official contract 
                and are controlling in the event that there is any 
                difference between the information on the 
                acknowledgment sheet and the information in the policy; 
                and
                    ``(D) a statement that if the policyholder has any 
                questions regarding information in the acknowledgment 
                sheet or policy he or she should contact the entity 
                selling the policy on behalf of the Program, together 
                with contact information sufficient to allow the 
                policyholder to contact such entity.
            ``(3) Required signatures.--Notwithstanding section 1306(c) 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4013(c)), a policy for flood insurance coverage under the 
        National Flood Insurance Program may not take effect unless the 
        disclosure sheet required under paragraph (1) and the 
        acknowledgment sheet required under paragraph (2), with respect 
        to the policy, are signed and dated by the policyholder and the 
        seller of the policy who is acting on behalf of the Program.''.

SEC. 12. RESERVE FUND AMOUNTS.

    Section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4017) is amended by adding at the end the following new subsection:
    ``(g) Crediting of Reserve Fund Amounts.--Funds collected pursuant 
to section 1310A may be credited to the Fund under this section to be 
available for the purpose described in subsection (d)(1).''.

SEC. 13. SUFFICIENT STAFFING FOR OFFICE OF FLOOD INSURANCE ADVOCATE.

    (a) In General.--Section 24 of the Homeowner Flood Insurance 
Affordability Act of 2014 (42 U.S.C. 4033) is amended by adding at the 
end the following new subsection:
    ``(c) Staff.--The Administrator shall ensure that the Flood 
Insurance Advocate has sufficient staff to carry out all of the duties 
and responsibilities of the Advocate under this section.''.
    (b) Timing.--The Administrator of the Federal Emergency Management 
Agency shall take such actions as may be necessary to provide for full 
compliance with section 24(c) of the Homeowner Flood Insurance 
Affordability Act of 2014, as added by the amendment made by subsection 
(a) of this section, not later than the expiration of the 180-day 
period beginning on the date of the enactment of this Act.

SEC. 14. FEDERAL FLOOD INSURANCE ADVISORY COMMITTEE.

    (a) Establishment.--There is established an advisory committee to 
be known as the Federal Flood Insurance Advisory Committee (in this 
section referred to as the ``Committee'').
    (b) Membership.--
            (1) Members.--The Committee shall consist of--
                    (A) the Administrator of the Federal Emergency 
                Management Agency (in this section referred to as the 
                ``Administrator''), or the designee thereof;
                    (B) the Secretary of the Treasury, or the designee 
                thereof; and
                    (C) additional members appointed by the 
                Administrator or the designee of the Administrator, who 
                shall be--
                            (i) two representatives of the property and 
                        casualty insurance sector;
                            (ii) one individual who served in the past, 
                        or is currently serving, as an insurance 
                        regulator of a State, the District of Columbia, 
                        the Commonwealth of Puerto Rico, Guam, the 
                        Commonwealth of the Northern Mariana Islands, 
                        the Virgin Islands, American Samoa, or any 
                        federally-recognized Indian tribe;
                            (iii) one representative of the financial 
                        or insurance sectors who is involved in risk 
                        transfers, including reinsurance, resilience 
                        bonds, and other insurance-linked securities;
                            (iv) one actuary with demonstrated high-
                        level knowledge of catastrophic risk insurance;
                            (v) two insurance professionals with 
                        demonstrated experience with the sale of flood 
                        insurance under the National Flood Insurance 
                        Program;
                            (vi) two representatives of catastrophic 
                        risk insurance programs;
                            (vii) one insurance claims specialist;
                            (viii) one representative of a recognized 
                        consumer advocacy organization;
                            (ix) one individual having demonstrated 
                        expertise in the challenges in insuring low-
                        income communities;
                            (x) one representative from an academic 
                        institution who has demonstrated expertise in 
                        insurance; and
                            (xi) such other recognized experts in the 
                        field of insurance as the Administrator 
                        considers necessary.
            (2) Qualifications.--In appointing members under paragraph 
        (1)(C), the Administrator shall, to the maximum extent 
        practicable, ensure the membership of the Committee has a 
        balance of members reflecting geographic diversity, including 
        representation from areas inland or with coastline identified 
        by the Administrator as at high risk for flooding or as areas 
        having special flood hazards.
    (c) Duties.--The Committee shall review, and make recommendations 
to the Administrator, upon request, on matters related to the insurance 
aspects of the National Flood Insurance Program, including ratemaking, 
technology to administer insurance, risk assessment, actuarial 
practices, claims practices, sales and insurance delivery, compensation 
and allowances, generally and based on the complexities of the program, 
and best insurance practices.
    (d) Chairperson.--The members of the Committee shall elect one 
member to serve as the chairperson of the Committee (in this section 
referred to as the ``Chairperson'').
    (e) Compensation.--Members of the Committee shall receive no 
additional compensation by reason of their service on the Committee.
    (f) Meetings and Actions.--
            (1) In general.--The Committee shall meet not less 
        frequently than twice each year at the request of the 
        Chairperson or a majority of its members, and may take action 
        by a vote of the majority of the members in accordance with the 
        Committee's charter.
            (2) Initial meeting.--The Administrator, or a person 
        designated by the Administrator, shall request and coordinate 
        the initial meeting of the Committee.
    (g) Staff of FEMA.--Upon the request of the Chairperson, the 
Administrator may detail, on a nonreimbursable basis, personnel of the 
Federal Emergency Management Agency to assist the Committee in carrying 
out its duties.
    (h) Powers.--In carrying out this section, the Committee may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as it considers appropriate.
    (i) Reports to Congress.--The Administrator, on an annual basis, 
shall report to the Committee on Financial Services of the House of 
Representatives, the Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Office of Management and Budget on--
            (1) the recommendations made by the Committee;
            (2) actions taken by the Federal Emergency Management 
        Agency to address such recommendations to improve the insurance 
        aspects of the national flood insurance program; and
            (3) any recommendations made by the Committee that have 
        been deferred or not acted upon, together with an explanatory 
        statement.

SEC. 15. INTERAGENCY GUIDANCE ON COMPLIANCE.

    The Federal entities for lending regulation (as such term is 
defined in section 3(a) of the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4003(a))), in consultation with the Administrator of the 
Federal Emergency Management Agency, shall update and reissue the 
document entitled ``Interagency Questions and Answers Regarding Flood 
Insurance'' not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act and not less 
frequently than biennially thereafter.

SEC. 16. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES.

    The Comptroller General of the United States shall conduct a study 
of the policies and practices for adjustment of claims for losses under 
flood insurance coverage made available under the National Flood 
Insurance Act, which shall include--
            (1) a comparison of such policies and practices with the 
        policies and practices for adjustment of claims for losses 
        under other insurance coverage;
            (2) an assessment of the quality of the adjustments 
        conducted and the effects of such policies and practices on 
        such quality;
            (3) identification of any incentives under such policies 
        and practices that affect the speed with which such adjustments 
        are conducted; and
            (4) identification of the affects of such policies and 
        practices on insureds submitting such claims for losses.
Not later than the expiration of the 18-month period beginning on the 
date of the enactment of this Act, the Comptroller General shall submit 
a report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate regarding the findings and conclusions of the 
study conducted pursuant to this section.

SEC. 17. GAO STUDY OF FLOOD INSURANCE COVERAGE TREATMENT OF EARTH 
              MOVEMENT.

    The Comptroller General of the United States shall conduct a study 
of the treatment, under flood insurance coverage made available under 
the National Flood Insurance Act, of earth movement and subsidence, 
including earth movement and subsidence caused by flooding, which shall 
include--
            (1) identification and analysis of the effects of such 
        treatment on the National Flood Insurance Program and insureds 
        under the program;
            (2) an assessment of the availability and affordability of 
        coverage in the private insurance market for earth movement and 
        subsidence caused by flooding;
            (3) an assessment of the effects on the National Flood 
        Insurance Program of covering earth movement and subsidence 
        caused by flooding; and
            (4) a projection of the increased premiums that would be 
        required to make coverage for earth movement losses actuarially 
        sound and not fiscally detrimental to the continuation of the 
        National Flood Insurance Program.
Not later than the expiration of the 18-month period beginning on the 
date of the enactment of this Act, the Comptroller General shall submit 
a report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate regarding the findings and conclusions of the 
study conducted pursuant to this section.

SEC. 18. DEFINITIONS.

    (a) National Flood Insurance Act of 1968.--Subsection (a) of 
section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4121(a)) is amended--
            (1) in paragraph (14), by striking ``and'' at the end;
            (2) in paragraph (15), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(16) the term `Write Your Own Program' means the program 
        under which the Federal Emergency Management Agency enters into 
        a standard arrangement with private property insurance 
        companies to sell contracts for flood insurance coverage under 
        this title under their own business lines of insurance, and to 
        adjust and pay claims arising under such contracts; and
            ``(17) the term `Write Your Own company' means a private 
        property insurance company that participates in the Write Your 
        Own Program.''.
    (b) Biggert-Waters Flood Insurance Reform Act of 2012.--Subsection 
(a) of section 100202 of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (42 U.S.C. 4004(a)) is amended by striking paragraph (5) and 
inserting the following new paragraph:
            ``(5) Write your own.--The terms `Write Your Own Program' 
        and `Write Your Own company' have the meanings given such terms 
        in section 1370(a) of the National Flood Insurance Act of 1968 
        (42 U.S.C. 4121(a)).''.
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