S.Amdt. 4714

SA 4714. Mr. SCHUMER (for himself, Mrs. Clinton, and Mr. Nelson of
Florida) submitted an amendment intended to be proposed to amendment SA
4707 proposed by Mr. Dodd (for himself and Mr. Shelby) to the bill S.
2284, to amend the National Flood Insurance Act of 1968, to restore the
financial solvency of the flood insurance fund, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of title I, add the following:

SEC. 133. MULTIPERIL COVERAGE FOR FLOOD AND WINDSTORM.

(a) In General.--Section 1304 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Multiperil Coverage for Damage From Flood or
Windstorm.--
``(1) In general.--Subject to paragraph (8), the national
flood insurance program established pursuant to subsection
(a) shall enable the purchase of optional insurance against
loss resulting from physical damage to or loss of real
property or personal property related thereto located in the
United States arising from any flood or windstorm, subject to
the limitations in this subsection and section 1306(b).
``(2) Community participation requirement.--Multiperil
coverage pursuant to this subsection may not be provided in
any area (or subdivision thereof) unless an appropriate
public body shall have adopted adequate mitigation measures
(with effective enforcement provisions) which the Director
finds are consistent with the criteria for construction
described in the International Code Council building codes
relating to wind mitigation.
``(3) Prohibition against duplicative coverage.--Multiperil
coverage pursuant to this subsection may not be provided with
respect to any structure (or the personal property related
thereto) for any period during which such structure is
covered, at any time, by flood insurance coverage made
available under this title.
``(4) Nature of coverage.--Multiperil coverage pursuant to
this subsection shall--
``(A) cover losses only from physical damage resulting from
flooding or windstorm; and
``(B) provide for approval and payment of claims under such
coverage upon proof that such loss must have resulted from
either windstorm or flooding, but shall not require for
approval and payment of a claim that the specific cause of
the loss, whether windstorm or flooding, be distinguished or
identified.
``(5) Actuarial rates.--Multiperil coverage pursuant to
this subsection shall be made available for purchase for a
property only at chargeable risk premium rates that, based on
consideration of the risks involved and accepted actuarial
principles, and including operating costs and allowance and
administrative expenses, are required in order to make such
coverage available on an actuarial basis for the type and
class of properties covered.
``(6) Terms of coverage.--The Director shall, after
consultation with persons and entities referred to in section
1306(a), provide by regulation for the general terms and
conditions of insurability which shall be applicable to
properties eligible for multiperil

[[Page S3909]]

coverage under this subsection, subject to the provisions of
this subsection, including--
``(A) the types, classes, and locations of any such
properties which shall be eligible for such coverage, which
shall include residential and nonresidential properties;
``(B) subject to paragraph (7), the nature and limits of
loss or damage in any areas (or subdivisions thereof) which
may be covered by such coverage;
``(C) the classification, limitation, and rejection of any
risks which may be advisable;
``(D) appropriate minimum premiums;
``(E) appropriate loss deductibles; and
``(F) any other terms and conditions relating to insurance
coverage or exclusion that may be necessary to carry out this
subsection.
``(7) Limitations on amount of coverage.--The regulations
issued pursuant to paragraph (6) shall provide that the
aggregate liability under multiperil coverage made available
under this subsection shall not exceed the lesser of the
replacement cost for covered losses or the following amounts,
as applicable:
``(A) Residential structures.--In the case of residential
properties, which shall include structures containing
multiple dwelling units that are made available for occupancy
by rental (notwithstanding any treatment or classification of
such properties for purposes of section 1306(b))--
``(i) for any single-family dwelling, $500,000;
``(ii) for any structure containing more than 1 dwelling
unit, $500,000 for each separate dwelling unit in the
structure, which limit, in the case of such a structure
containing multiple dwelling units that are made available
for occupancy by rental, shall be applied so as to enable any
insured or applicant for insurance to receive coverage for
the structure up to a total amount that is equal to the
product of the total number of such rental dwelling units in
such property and the maximum coverage limit per dwelling
unit specified in this clause; and
``(iii) $150,000 per dwelling unit for--

``(I) any contents related to such unit; and
``(II) any necessary increases in living expenses incurred
by the insured when losses from flooding or windstorm make
the residence unfit to live in.

``(B) Nonresidential properties.--In the case of
nonresidential properties (including church properties)--
``(i) $1,000,000 for any single structure; and
``(ii) $750,000 for--

``(I) any contents related to such structure; and
``(II) in the case of any nonresidential property that is a
business property, any losses resulting from any partial or
total interruption of the insured's business caused by damage
to, or loss of, such property from flooding or windstorm,
except that for purposes of such coverage, losses shall be
determined based on the profits the covered business would
have earned, based on previous financial records, had the
flood or windstorm not occurred.

``(8) Requirement to cease offering coverage if borrowing
to pay claims.--If at any time the Director utilizes the
borrowing authority under section 1309(a) for the purpose of
obtaining amounts to pay claims under multiperil coverage
made available under this subsection, the Director may not,
during the period beginning upon the initial such use of such
borrowing authority and ending upon repayment to the
Secretary of the Treasury of the full amount of all
outstanding notes and obligations issued by the Director for
such purpose, together with all interest owed on such notes
and obligations, enter into any new policy, or renew any
existing policy, for coverage made available under this
subsection.
``(9) Effective date.--This subsection shall take effect
on, and shall apply beginning on, June 30, 2008.''.
(b) Prohibition Against Duplicative Coverage.--Chapter I of
the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et
seq.), as amended by section 26, is further amended by adding
at the end the following:

``SEC. 1315. PROHIBITION AGAINST DUPLICATIVE COVERAGE.

``Flood insurance under this title may not be provided with
respect to any structure (or the personal property related
thereto) for any period during which such structure is
covered, at any time, by multiperil insurance coverage made
available pursuant to section 1304(c).''.
(c) Compliance With State and Local Law.--Section 1316 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4023) is
amended--
(1) by inserting ``(a) Flood Protection Measures.--''
before ``No new''; and
(2) by adding at the end the following new subsection:
``(b) Windstorm Protection Measures.--No new multiperil
coverage shall be provided under section 1304(c) for any
property that the Director finds has been declared by a duly
constituted State or local zoning authority, or other
authorized public body to be in violation of State or local
laws, regulations, or ordinances, which are intended to
reduce damage caused by windstorms.''.
(d) Criteria for Land Management and Use.--Section 1361 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4102) is
amended by adding at the end the following new subsection:
``(d) Windstorms.--
``(1) Studies and investigations.--The Director shall carry
out studies and investigations under this section to
determine appropriate measures in wind events as to wind
hazard prevention, and may enter into contracts, agreements,
and other appropriate arrangements to carry out such
activities. Such studies and investigations shall include
laws, regulations, and ordinance relating to the orderly
development and use of areas subject to damage from windstorm
risks, and zoning building codes, building permits, and
subdivision and other building restrictions for such areas.
``(2) Criteria.--On the basis of the studies and
investigations pursuant to paragraph (1) and such other
information as may be appropriate, the Direct shall establish
comprehensive criteria designed to encourage, where
necessary, the adoption of adequate State and local measures
which, to the maximum extent feasible, will assist in
reducing damage caused by windstorms, discourage density and
intensity or range of use increases in locations subject to
windstorm damage, and enforce restrictions on the alteration
of wetlands coastal dunes and vegetation and other natural
features that are known to prevent or reduce such damage.
``(3) Coordination with state and local governments.--The
Director shall work closely with and provide any necessary
technical assistance to State, interstate, and local
governmental agencies, to encourage the application of
criteria established under paragraph (2) and the adoption and
enforcement of measures referred to in such paragraph.''.
(e) Definitions.--Section 1370 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4121) is amended--
(1) in paragraph (14), by striking ``and'' at the end;
(2) in paragraph (15) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(16) the term `windstorm' means any hurricane, tornado,
cyclone, typhoon, or other wind event.''.
______