Title: Flood Insurance Flexibility Act
Policy area: Finance and Financial Sector

Summary:
Flood Insurance Flexibility Act
This bill requires the National Flood Insurance Program (NFIP) to refund the appropriate amount of the premiums paid for flood insurance coverage if an insured cancels an NFIP policy and obtains non-NFIP coverage.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2831 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 2831

  To require the National Flood Insurance Program to accept mid-term 
   cancellations of flood insurance coverage if the insured acquires 
                         alternative coverage.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 23, 2021

Mr. Lee (for himself and Mr. Scott of Florida) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To require the National Flood Insurance Program to accept mid-term 
   cancellations of flood insurance coverage if the insured acquires 
                         alternative coverage.

    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 Flexibility Act''.

SEC. 2. REFUND OF PREMIUMS.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by inserting after section 1307 (42 U.S.C. 
4014) the following:

``SEC. 1307A. REFUND OF PREMIUMS.

    ``(a) Definitions.--In this section--
            ``(1) the term `new alternate policy', with respect to an 
        NFIP policy, means another policy for duplicate flood insurance 
        coverage for the same property obtained from a source other 
        than the National Flood Insurance Program under this title; and
            ``(2) the term `NFIP policy' means a policy for flood 
        insurance coverage for a property that is made available under 
        this title.
    ``(b) Required Refund.--Notwithstanding any other provision of law, 
if at any time an insured under an NFIP policy cancels the policy 
because a new alternate policy has been obtained, the Administrator 
shall refund to the former insured a portion of the premiums paid for 
the coverage made available under this title, as determined consistent 
with industry practice according to the portion of the term of the NFIP 
policy for which coverage was in effect, but only if a copy of the 
declarations page of the new alternate policy is provided to the 
Administrator.
    ``(c) Effective Date of Cancellation.--For purposes of this 
section, a cancellation of an NFIP policy for the reason specified in 
subsection (b) shall be effective--
            ``(1) on the effective date of the new alternate policy, if 
        the Administrator receives the request for the cancellation 
        during the 180-day period beginning on the effective date of 
        the new alternate policy; or
            ``(2) on the date of the receipt by the Administrator of 
        the request for cancellation, if the Administrator receives the 
        request after the 180-day period beginning on the effective 
        date of the new alternate policy.''.
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