Increased Cost of Compliance Modernization Act of 2022

Bill: 117-hr-7221
Sponsor: full_name: Rep. Rice, Tom [R-SC-7]
Introduced: 2022-03-24
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-03-24
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2022-03-24
action_desc: Introduced in House
text: <p><strong>Increased Cost of Compliance Modernization Act of 2022 </strong></p> <p>This bill increases insurance coverage available to structures in high-risk flood areas under the National Flood Insurance Program (NFIP), commonly known as Increased Cost of Compliance (ICC) coverage. ICC coverage applies to costs related to flood mitigation requirements for repairs to, or the rebuilding of, flood-damaged structures with existing NFIP coverage. </p> <p>Currently, ICC coverage is capped at $30,000. The bill increases this amount to 20% of the maximum amount of flood insurance coverage (currently $50,000) with additional coverage available of up to 40% of the maximum amount of coverage (currently $100,000). </p> <p>The bill removes the cap on ICC premiums and requires the premium amount to be calculated pursuant to other NFIP rates. Additionally, ICC coverage does not count towards the cap on overall NFIP coverage. </p> <p>Finally, ICC policyholders are allowed to assign the rights or benefits of this coverage to a governmental agency to satisfy certain cost-sharing requirements applicable to mitigation assistance programs.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 7221 IN THE HOUSE OF REPRESENTATIVES March 24, 2022 Mr. Rice of South Carolina (for himself and Mr. Vicente Gonzalez of Texas ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To increase coverage under the National Flood Insurance Program for costs of compliance, and for other purposes.

1. Short title This Act may be cited as the Increased Cost of Compliance Modernization Act of 2022 . 2. Increased cost of compliance coverage Section 1304(b) 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 adjusting the margins accordingly; (2) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and adjusting the margins accordingly; (3) by striking (b) Additional coverage for compliance with land use and control measures .—The national and inserting the following: (b) Additional coverage for compliance with land use and control measures (1) In general The national ; (4) by striking the last sentence (relating to surcharge); and (5) by adding at the end the following: (2) Coverage amounts (A) Basic coverage Unless a policyholder chooses additional coverage pursuant to subparagraph (B), the Administrator shall make available coverage provided under paragraph (1) in an amount equal to 20 percent of the maximum amount of flood insurance coverage allowable under section 1306(b)(2) ( 42 U.S.C. 4013(b)(2) ) with respect to a residential building described in such section. (B) Additional coverage The Administrator may offer, and a policyholder may choose to purchase for an additional premium, coverage provided under paragraph (1) in an amount greater than that offered pursuant to subparagraph (A), but not exceeding an amount equal to 40 percent of the maximum amount of flood insurance coverage allowable under section 1306(b)(2) ( 42 U.S.C. 4013(b)(2) ) with respect to a residential building described in such section. (C) Treatment of coverage limits Any amount of coverage for a property provided pursuant to this subsection shall not be considered or counted for purposes of any limitation on coverage applicable to such property under section 1306(b) and any claim on such coverage shall not be considered a claim for purposes of identifying properties with multiple losses. (3) Premiums The Administrator shall charge risk premium rates for coverage made available pursuant to this subsection in accordance with section 1307(a)(1). (4) Assignment of coverage for mitigation grant cost share requirement (A) In general A policyholder may assign the rights or benefits of the coverage made available under this subsection to a governmental entity for the purposes of using payments made for a claim against coverage made available under this subsection to satisfy a required non-Federal contribution for a flood-related mitigation project funded by a mitigation assistance program described in clause (i), (ii), or (iii) of paragraph (1)(D). (B) Eligible expenses If a policyholder assigns rights or benefits of coverage pursuant to subparagraph (A), a required non-Federal contribution for a flood-related mitigation project funded by a mitigation assistance program described in clause (i), (ii) or (iii) of paragraph (1)(D) shall be an eligible expense for coverage made available under this subsection. (C) Terms and conditions The Administrator may adopt procedures for assigning rights or benefits of coverage pursuant to subparagraph (A). (5) Implementation Notwithstanding any other provision of law, the Administrator may implement this subsection by adopting one or more standard endorsements to the Standard Flood Insurance Policy by publication of such standards endorsement in the Federal Register or by comparable means. .