Flood Insurance Flexibility Act

Bill: 117-s-2831
Sponsor: full_name: Sen. Lee, Mike [R-UT]
Introduced: 2021-09-23
Policy area: Finance and Financial Sector
Latest action: action_date: 2021-09-23
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2021-09-23
action_desc: Introduced in Senate
text: <p><strong>Flood Insurance Flexibility Act</strong></p> <p>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.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2831 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.

1. Short title This Act may be cited as the Flood Insurance Flexibility Act . 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: 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. .