An amendment numbered 8 printed in Part B of House Report 110-351 to prohibit a company that sells and services flood insurance policies from including language in its own windstorm policies that would exclude coverage of wind damage solely because flooding also contributed to the damage. The amendment also requires the contract between an insurance company and NFIP to state that the company has a fiduciary responsibility to federal taxpayers and will act in the best interests of NFIP.

1. Adds SEC. 30. REQUIREMENTS RELATING TO WINDSTORM AND FLOOD at the end of the bill

   Adds a section

   Inserted: SEC. 30. REQUIREMENTS RELATING TO WINDSTORM AND FLOOD.

   Inserted: Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4081) is amended by adding at the end the following new subsection:

   Inserted: "(d) Requirements for Write-Your-Own Insurers Relating to Windstorm and Flood.--The Director may not utilize the facilities or services of any insurance company or other insurer to offer flood insurance coverage under this title unless such company or insurer enters into a written agreement with the Director that provides as follows:

   Inserted: "(1) Prohibition on exclusion of wind damage coverage.--The agreement shall prohibit the company or insurer from including, in any policy provided by the company or insurer for homeowners' insurance coverage or coverage for damage from windstorms, any provision that excludes coverage for wind or other damage solely because flooding also contributed to damage to the insured property.

   Inserted: "(2) Fiduciary responsibility.--The agreement shall provide that the company or insurer--

   Inserted: "(A) has a fiduciary duty with respect to the Federal taxpayers;

   Inserted: "(B) in selling and servicing policies for flood insurance coverage under this title and adjusting claims under such coverage, will act in the best interests the national flood insurance program rather than in the interests of the company or insurer; and

   Inserted: "(C) will provide written guidance to each insurance agent and claims adjuster for the company or insurer setting forth the terms of the agreement pursuant to subparagraphs (A) and (B).".

   Original wording

   At the end of the bill, add the following new section:

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As printed