NFIP Premium Transparency Act

Bill: 118-hr-9726
Sponsor: full_name: Rep. Cartwright, Matt [D-PA-8]
Introduced: 2024-09-20
Policy area: Finance and Financial Sector
Latest action: action_date: 2024-09-20
text: Referred to the House Committee on Financial Services.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 9726 IN THE HOUSE OF REPRESENTATIVES September 20, 2024 Mr. Cartwright (for himself, Mr. Carson , Mr. Carter of Louisiana , Mr. Thanedar , Ms. Tokuda , and Ms. Wild ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Administrator of the Federal Emergency Management Agency to develop a flood insurance information tool, and for other purposes.

1. Short title This Act may be cited as the NFIP Premium Transparency Act . 2. Dissemination of Flood Insurance Information The National Flood Insurance Act of 1968 (42 U.S.C. 4001 et. seq.) is amended by striking section 1313 and inserting the following: 1313. Dissemination of Flood Insurance Information (a) In general The Administrator shall ensure that the declaration page for each flood insurance policy issued under the national flood insurance program for a property shall, not later than 12 months after the date of the enactment of this subsection, include the following: (1) The current insurance premium for such property, including a description of any discounts being applied including any discounts associated with— (A) building, construction, or substantial improvement which began before the Administrator published an initial rate map for the community, eligible for less than actuarial rates under section subsections (a)(2) and (g) of section 1307(a)(2); (B) the newly mapped property discount under section 1308(i); (C) an estimate of the number years remaining until the premium for such property shall match the full-risk based premium for such property, having accounted for the annual limitation on premium increases under section 1308(e); (D) available mitigation options and associated premium savings; (E) claim history; (F) the community rating system under section 1315(b); and (G) annual limitations on premium increases under section 1308(e). (2) Any annual limitations on premium increases under section 1308(e). (3) Any current risk factors, including the elevation of the property above first floor height. (4) The replacement cost value. (5) Any special category that applies to the property, including repetitive loss property or severe repetitive loss property. (6) Any flood insurance requirement that applies to the property as a result of disaster assistance previously provided by the Administrator. (7) On and after the date that is 36 months after the date of the enactment of this section, the website address where the flood insurance information tool established pursuant to subsection (c) may be located. (b) Explanation required If any item of information required to be included on a declaration page under subsection (a) cannot be provided, an explanation of why such item of information cannot be provided shall be included on the declaration page. (c) Required information sharing The Administrator shall, beginning on the date that is 12 months after the date of the enactment of this subsection, share with each insurance company that issues a flood insurance policy under the national flood insurance program any information the Administrator has that relates to the items listed in subsection (a). (d) Flood insurance information tool (1) In general The Administrator shall, not later than 36 months after the date of the enactment of this section, develop a flood insurance information tool that is accessible online and contains the following information with respect to each property for which a flood insurance policy is issued under the national flood insurance program: (A) The current insurance premium for such property, including a description of any reason why the current premium is less than actuarial rates; including due to grandfathering, pre-FIRM discount status, newly mapped property status, or a Community Rating System status. (B) A description of any limitations on annual premium increases. (C) The risk premium rate for such property. (D) The replacement cost value for such property, and the date on which such value was calculated. (E) A detailed flood history for such property that includes a list of any prior claims under the national flood insurance program associated with such property and the dates of such claims. (F) Any special category that applies to the property, including repetitive loss property or severe repetitive loss property. (G) The date of the most recent flood hazard determination of such property and the date of any planned future flood hazard determination of such property. (H) Any flood insurance requirement that applies to the property as a result of disaster assistance previously provided by the Administrator. (I) Any additional information the Administrator determines appropriate. (2) Explanation required If any item of information required to be included in the food insurance information tool under paragraph (1) cannot be provided, an explanation of why such item of information cannot be provided shall be included in the flood insurance information tool. (3) Access to the flood insurance information tool The Administrator shall, notwithstanding any conflicting provision in the Privacy Act of 1974, provide access to the flood insurance information tool, suite of tools, or discrete parts of such tools, to— (A) the public, for all information where the Administrator has determined that release to the public is in the best interest of the public; and (B) owners of properties for which a flood insurance policy is issued under the national flood insurance program, for information where the Administrator has determined that release to the public is not in the best interest of the public. (4) Adjustment capability To the degree practicable, the flood insurance information tool, or suite of tools, developed by Administrator shall allow the capability for users, with respect to each item of information listed in paragraph (1) to, to the extent feasible— (A) adjust variables that change over time and impact flood risk, including, the elements set forth in 42 U.S.C. 4101b(b)(1) and 42 U.S.C. 4101b(b)(3) ; and (B) evaluate how such adjustments or mitigation activities would— (i) reduce the risk of flooding; and (ii) decrease premiums. (e) Replacement cost value defined The term replacement cost value means the cost to replace that part of a building that is damaged by flood, without depreciation. (f) Additional information availability In addition to as required under subsection (a) through (d) of this subsection, the Administrator shall from time to time take such action as may be necessary in order to make information and data available to the public, and to any State or local agency or official, with regard to— (1) the flood insurance program, its coverage and objectives; and (2) estimated and chargeable flood insurance premium rates, including the basis for and differences between such rates in accordance with the provisions of section 1308. . 3. Report The Comptroller General of the United States shall, not later than 2 years after the date on which the Administrator of the Federal Emergency Management Agency makes available the flood insurance information tool required to be developed under section 1313(c) of the National Flood Insurance Act of 1968, publish a report that analyzes the following: (1) Whether the following information could be added to flood insurance information tool established by the Administrator of the Federal Emergency Management Agency pursuant to section 1313 of the National Flood Insurance Act of 1968: (A) Any property acquisition programs for which the property qualifies. (B) Any nature based solutions that may be used to reduce the flood risk for the property. (C) Any planned or existing flood defenses in the area in which a property is located. (D) Any implications that additional development in the area where property is located may have on flood risk. (E) Any standards established locally that affect the repair or improvement of the property, including— (i) any limitations on repairs or improvements based on the value of the property; and (ii) any local standards that go beyond the standards required under the national flood insurance program. (F) A description of any community rating system rating that impacts the property and discounts that may be available based on this rating system. (2) Whether access to the flood insurance information tool established by the Administrator of the Federal Emergency Management Agency pursuant to section 1313 of the National Flood Insurance Act of 1968 could be provided to prospective buyers of properties for which a flood insurance policy is issued under the national flood insurance program. (3) Whether the flood insurance information tool established by the Administrator of the Federal Emergency Management Agency pursuant to section 1313 of the National Flood Insurance Act of 1968 could allow users to, with respect to each item of information listed in paragraph in the flood insurance tool, adjust variables that impact flood risk, including— (A) relative sea level rise; (B) extension of impervious cover; and (C) and levee reliability changes. (4) Whether the types of information available within the flood insurance information tool established by the Administrator of the Federal Emergency Management Agency pursuant to section 1313 of the National Flood Insurance Act of 1968 could be expanded further. (5) Whether the information provided by the flood insurance tool established by the Administrator of the Federal Emergency Management Agency pursuant to section 1313 of the National Flood Insurance Act of 1968 could be used by policy holders as part of any appeals procedure implemented by the Administrator on or after the date of the enactment of this Act.