Flood Insurance Pricing Transparency Act

Bill: 117-s-3829
Sponsor: full_name: Sen. Cassidy, Bill [R-LA]
Introduced: 2022-03-14
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-03-14
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2022-03-14
action_desc: Introduced in Senate
text: <p><strong>Flood Insurance Pricing Transparency Act </strong></p> <p>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.</p>

tv_txt: II 117th CONGRESS 2d Session S. 3829 IN THE SENATE OF THE UNITED STATES March 14, 2022 Mr. Cassidy (for himself, Mrs. Gillibrand , and Mr. Kennedy ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL 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.

1. Short title This Act may be cited as the Flood Insurance Pricing Transparency Act . 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.