National Flood Insurance Program Consultant Accountability Act of 2023

Bill: 118-s-1039
Sponsor: full_name: Sen. Kennedy, John [R-LA]
Introduced: 2023-03-29
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-03-29
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-03-29
action_desc: Introduced in Senate
text: <p><strong>National Flood Insurance Program Consultant Accountability Act of 2023</strong></p> <p>This bill allows the Federal Emergency Management Agency (FEMA) to terminate certain contracts under the National Flood Insurance Program on the basis of detrimental conduct to the program by a covered entity (an attorney, law firm, consultant, or third-party company that provides certain services under the contract). Specifically, on such basis, FEMA may terminate a contract between a covered entity&nbsp;and a Write Your Own company (a property and casualty company that writes and services federal standard flood insurance policies in its own name).</p> <p>FEMA shall establish a process for a covered entity to appeal such a termination.</p> <p>Neither FEMA nor a Write Your Own company is required to make an early-termination payout to a covered entity with respect to a contract terminated under the&nbsp;bill.</p>

tv_txt: II 118th CONGRESS 1st Session S. 1039 IN THE SENATE OF THE UNITED STATES March 29, 2023 Mr. Kennedy (for himself and Mr. Menendez ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To authorize the Administrator of the Federal Emergency Management Agency to terminate certain contracts on the basis of detrimental conduct to the National Flood Insurance Program, and for other purposes.

1. Short title This Act may be cited as the National Flood Insurance Program Consultant Accountability Act of 2023 . 2. Termination of certain contracts under the National Flood Insurance Program (a) In general Part C of chapter II of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4081 et seq. ) is amended by adding at the end the following: 1349. Termination of contracts (a) Definitions In this section— (1) the term covered entity means any attorney, law firm, consultant, or third-party company that provides services to a Write Your Own company; and (2) the term Write Your Own company means a company participating in the cooperative undertaking between the insurance industry and the Federal Insurance and Mitigation Administration that allows participating property and casualty insurance companies to write and service standard flood insurance policies. (b) Termination (1) In general Notwithstanding any other provision of law, the Administrator may terminate a contract or other agreement between a covered entity and a Write Your Own company if the Administrator— (A) determines that the covered entity has engaged in conduct that is detrimental to the flood insurance program authorized under chapter I; and (B) not later than 14 days before terminating the contract or other agreement, provides notice to the covered entity of the termination. (2) Appeal The Administrator shall establish a process for a covered entity to appeal a termination of a contract or other agreement under paragraph (1). (3) Early termination payouts The Administrator or a Write Your Own company is not required to make any early termination payout to a covered entity with respect to a contract or agreement with the Write Your Own company that the Administrator terminates under paragraph (1). . (b) Effective date; applicability The amendment made by subsection (a) shall— (1) take effect on the date of enactment of this Act; and (2) apply to any contract or other agreement between a covered entity and a Write Your Own company (as those terms are defined in section 1349(a) of the National Flood Insurance Act of 1968, as added by subsection (a)) entered into on or after the date of enactment of this Act.