Source: http://www.law.cornell.edu/uscode/text/42/4015?qt-us_code_tabs=2
Timestamp: 2014-08-28 00:02:16
Document Index: 558061562

Matched Legal Cases: ['§ 4015', '§ 4015', '§ 4015', '§ 1308', '§ 103', '§ 451', '§ 2302', '§ 572', '§ 106', '§ 209', '§ 2', '§ 100205', '§ 4', '§ 100201', '§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 11', '§ 4', '§ 6', '§ 7', '§ 26', '§ 28', '§ 29', '§ 100211', '§ 100211', '§ 100238', '§ 100205', '§ 100205', '§ 100205', '§ 100238', '§ 100205', '§ 100207', '§ 100211', '§ 4', '§ 2', '§ 100205', '§ 11', '§ 2302', '§ 451', '§ 40152012112', '§ 40152012112', '§ 40152012112', '§ 4015', '§ 40152012112', '§ 40152012112', '§ 4015']

42 U.S. Code § 4015 - Chargeable premium rates | LII / Legal Information Institute
U.S. Code › Title 42 › Chapter 50 › Subchapter I › § 4015 42 U.S. Code § 4015 - Chargeable premium rates
Annual limitation on premium increases Except with respect to properties described under paragraph (2) of subsection (c) of this section, and notwithstanding any other provision of this chapter—
the chargeable risk premium rate for flood insurance under this chapter for any property may not be increased by more than 18 percent each year, except—
as provided in paragraph (4);
in the case of property identified under section 4014
in the case of a property that—
is located in a community that has experienced a rating downgrade under the community rating system program carried out under section 4022
is covered by a policy with respect to which the policyholder has—
decreased the amount of the deductible; or
increased the amount of coverage; or
was misrated;
the chargeable risk premium rates for flood insurance under this chapter for any properties initially rated under section 4014
(a)(2) of this title within any single risk classification, excluding properties for which the chargeable risk premium rate is not less than the applicable estimated risk premium rate under section 4014
(a)(1) of this title, shall be increased by an amount that results in an average of such rate increases for properties within the risk classification during any 12-month period of not less than 5 percent of the average of the risk premium rates for such properties within the risk classification upon the commencement of such 12-month period;
the chargeable risk premium rates for flood insurance under this chapter for any properties within any single risk classification may not be increased by an amount that would result in the average of such rate increases for properties within the risk classification during any 12-month period exceeding 15 percent of the average of the risk premium rates for properties within the risk classification upon the commencement of such 12-month period; and
the chargeable risk premium rates for flood insurance under this chapter for any properties described in subparagraphs (A) through (E) of section 4014
(a)(2) of this title shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under paragraph (3).
Frequency of premium collection With respect to any chargeable premium rate prescribed under this section, the Administrator shall provide policyholders that are not required to escrow their premiums and fees for flood insurance as set forth under section 4012a of this title with the option of paying their premiums annually or monthly.
Rates for properties newly mapped into areas with special flood hazards Notwithstanding subsection (f), the premium rate for flood insurance under this chapter that is purchased on or after March 21, 2014—
on a property located in an area not previously designated as having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood insurance map, becomes designated as such an area; and
where such flood insurance premium rate is calculated under subsection (a)(1) ofsection 4014 of this title,
shall for the first policy year be the preferred risk premium for the property and upon renewal shall be calculated in accordance with subsection (e) of this section until the rate reaches the rate calculated under subsection (a)(1) ofsection 4014 of this title.
Premiums and reports In setting premium risk rates, in addition to striving to achieve the objectives of this chapter the Administrator shall also strive to minimize the number of policies with annual premiums that exceed one percent of the total coverage provided by the policy. For any policies premiums that exceed this one percent threshold, the Administrator shall report such exceptions to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
Consideration of mitigation methods In calculating the risk premium rate charged for flood insurance for a property under this section, the Administrator shall take into account the implementation of any mitigation method identified by the Administrator in the guidance issued under section 4102
Clear communications The Administrator shall clearly communicate full flood risk determinations to individual property owners regardless of whether their premium rates are full actuarial rates.
Protection of small businesses, non-profits, houses of worship, and residences (1)
Report Not later than 18 months after March 21, 2014,
and semiannually thereafter, the Administrator shall monitor and report to Committee on Financial Services of the House Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, the Administrator’s assessment of the impact, if any, of the rate increases required under subparagraphs (A) and (D) of section 4014
(a)(2) of this title and the surcharges required under section 4015a of this title on the affordability of flood insurance for—
small businesses with less than 100 employees;
residences with a value equal to or less than 25 percent of the median home value of properties in the State in which the property is located.
Recommendations If the Administrator determines that the rate increases or surcharges described in paragraph (1) are having a detrimental effect on affordability, including resulting in lapsed policies, late payments, or other criteria related to affordability as identified by the Administrator, for any of the properties identified in subparagraphs (A) through (D) of such paragraph, the Administrator shall, not later than 3 months after making such a determination, make such recommendations as the Administrator considers appropriate to improve affordability to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(Pub. L. 90–448, title XIII, § 1308,Aug. 1, 1968, 82 Stat. 576; Pub. L. 93–234, title I, § 103,Dec. 31, 1973, 87 Stat. 978; Pub. L. 98–181, title I[title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 101–508, title II, § 2302(e)(2),Nov. 5, 1990, 104 Stat. 1388–24; Pub. L. 103–325, title V, § 572(a),Sept. 23, 1994, 108 Stat. 2277; Pub. L. 108–264, title I, § 106, title II, § 209,June 30, 2004, 118 Stat. 724, 727; Pub. L. 112–123, § 2(b),May 31, 2012, 126 Stat. 365; Pub. L. 112–141, div. F, title II, §§ 100205(c), (d), 100207, 100211, 100238(b)(1),July 6, 2012, 126 Stat. 918, 919, 921, 958; Pub. L. 113–89, §§ 4(a), 5–7, 11
(a), 26
(b), 28, 29,Mar. 21, 2014, 128 Stat. 1022, 1023, 1025, 1033.)
This chapter, referred to in subsecs. (b)(2), (e), (i), and (j), was in the original a reference to “this title” meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables.
This chapter, referred to in subsec. (f), was in the original “this Act”, and was translated as reading “this title”, meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this chapter, to reflect the probable intent of Congress. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables.
The Biggert-Waters Flood Insurance Reform Act of 2012, referred to in subsec. (h), is subtitle A (§§ 100201–100249) of title II of div. F of Pub. L. 112–141, July 6, 2012, 126 Stat. 916. For complete classification of this Act to the Code, see Short Title of 2012 Amendment note set out under section 4001 of this title and Tables.
March 21, 2014, referred to in subsec. (m)(1), was in the original “the date of the enactment of this section”, and was translated as reading “the date of the enactment of this subsection”, meaning the date of enactment of Pub. L. 113–89, which enacted subsec. (m), to reflect the probable intent of Congress.
2014—Subsec. (e). Pub. L. 113–89, § 5(1), struck out “, the chargeable risk premium rates for flood insurance under this chapter for any properties” before dash at end of introductory provisions.
Subsec. (e)(1), (2). Pub. L. 113–89, § 5(5), added pars. (1) and (2). Former pars. (1) and (2) redesignated (3) and (4), respectively.
Pub. L. 113–89, § 5(2), (3), inserted “the chargeable risk premium rates for flood insurance under this chapter for any properties” at beginning.
Subsec. (e)(3). Pub. L. 113–89, § 5(4), (6), redesignated par. (1) as (3) and substituted “15 percent” for “20 percent”.
Subsec. (e)(4). Pub. L. 113–89, § 5(4), (7), redesignated par. (2) as (4) and substituted “paragraph (3)” for “paragraph (1)”.
Subsec. (g). Pub. L. 113–89, § 11(a), substituted “annually or monthly” for “either annually or in more frequent installments”.
Subsec. (h). Pub. L. 113–89, § 4(a), redesignatedsubsec. (i) as (h) and struck out former subsec. (h) which related to premium adjustment to reflect current risk of flood.
Subsec. (i). Pub. L. 113–89, § 6, added subsec. (i). Former subsec. (i) redesignated (h).
Subsec. (j). Pub. L. 113–89, § 7, added subsec. (j).
Subsec. (k). Pub. L. 113–89, § 26(b), added subsec. (k).
Subsec. (l). Pub. L. 113–89, § 28, added subsec. (l).
Subsec. (m). Pub. L. 113–89, § 29, added subsec. (m).
Pub. L. 112–141, § 100211(1), in introductory provisions, substituted “prescribe, after providing notice” for “, after consultation with the advisory committee authorized under section 4025 of this title, appropriate representatives of the pool formed or otherwise created under section 4051 of this title, and appropriate representatives of the insurance authorities of the respective States, prescribe by regulation”.
Subsec. (b)(5). Pub. L. 112–141, § 100211(2), added par. (5).
Subsecs. (c), (d). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director” wherever appearing.
Subsec. (e). Pub. L. 112–141, § 100205(c)(1), struck out “or (3)” after “paragraph (2)” and inserted “any properties” after “under this chapter for” in introductory provisions.
Pub. L. 112–123substituted “under this chapter for—” for “under this chapter for”, inserted par. (1) designation before “any properties”, and added par. (2).
Subsec. (e)(1). Pub. L. 112–141, § 100205(c)(2), substituted “within any single” for “any properties within any single” and “20 percent” for “10 percent”.
Subsec. (e)(2). Pub. L. 112–141, § 100205(c)(3), added par. (2) and struck out former par. (2) which read as follows: “any residential properties which are not the primary residence of an individual, as described in section 4014
(a)(2) of this title, shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under paragraph (1).”
Subsec. (f). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director” in two places.
Subsec. (g). Pub. L. 112–141, § 100205(d), added subsec. (g).
Subsec. (h). Pub. L. 112–141, § 100207, added subsec. (h).
Subsec. (i). Pub. L. 112–141, § 100211(3), added subsec. (i).
Pub. L. 113–89, § 4(b),Mar. 21, 2014, 128 Stat. 1022, provided that: “The amendments made by subsection (a) [amending this section] shall take effect as if enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012 ([subtitle A of title II of div. F of] Public Law 112–141; 126 Stat. 957 [sic]).”
Pub. L. 112–123, § 2(c),May 31, 2012, 126 Stat. 365, provided that: “The first increase in chargeable risk premium rates for residential properties which are not the primary residence of an individual under section 1308(e)(2) of the National Flood Insurance Act of 1968 [former 42 U.S.C. 4015
(e)(2)], as added by this Act, shall take effect on July 1, 2012, and the chargeable risk premium rates for such properties shall be increased by 25 percent each year thereafter, as provided in such section 1308
(e)(2).”
Pub. L. 112–141, div. F, title II, § 100205(e),July 6, 2012, 126 Stat. 919, provided that: “Nothing in this section [amending this section and section 4014 of this title and enacting provisions set out as a note under section 4014 of this title] or the amendments made by this section may be construed to affect the requirement under section 2(c) of the Act entitled ‘An Act to extend the National Flood Insurance Program, and for other purposes’, approved May 31, 2012 (Public Law 112–123) [set out above], that the first increase in chargeable risk premium rates for residential properties which are not the primary residence of an individual take effect on July 1, 2012.”
Pub. L. 113–89, § 11(b),Mar. 21, 2014, 128 Stat. 1025, provided that: “The Administrator [of the Federal Emergency Management Agency] shall implement the requirement under section 1308(g) of the National Flood Insurance Act of 1968 [42 U.S.C. 4015
(g)], as amended by subsection (a), not later than the expiration of the 18-month period beginning on the date of the enactment of this Act [Mar. 21, 2014].”
Pub. L. 101–508, title II, § 2302(e)(5),Nov. 5, 1990, 104 Stat. 1388–25, provided that, notwithstanding section 541(d) ofPub. L. 100–242, formerly set out below, premium rates charged for flood insurance under any program established pursuant to this chapter could be increased by more than 10 percent during fiscal year 1991, with certain exceptions.
Pub. L. 98–181, title I[title IV, § 451(g)(1)], Nov. 30, 1983, 97 Stat. 1229, provided that premium rates charged for flood insurance under any program established pursuant to this chapter could not be increased during the period beginning Nov. 30, 1983, and ending Sept. 30, 1984.
42 USCDescription of ChangeSession YearPublic LawStatutes at Large § 40152012112-141 [Sec.] 100205(c), (d)126 Stat. 918, 919 § 40152012112-141 [Sec.] 100238(b)(1)126 Stat. 958 § 40152012112-141 [Sec.] 100211126 Stat. 921 § 4015nt new2012112-141 [Sec.] 100205(e)126 Stat. 919 § 40152012112-141 [Sec.] 100207126 Stat. 919 § 40152012112-123 [Sec.] 2(b)126 Stat. 365 § 4015nt new2012112-123 [Sec.] 2(c)126 Stat. 365 LII has no control over and does not endorse any external Internet site that contains links to or references LII.