An amendment numbered 16 printed in House Report 112-138 to reduce the number of flood insurance policies that are directly managed by the Agency to not more than 10% of the total number of flood insurance policies in force. Would further authorize FEMA to refuse to accept future transfers of policies to the NFIP Direct program.

1. Adds SEC. 21. FEMA AUTHORITY TO REJECT TRANSFER OF POLICIES on page 57, line 2

   Adds a sectionPrinted page

   Inserted: SEC. 21. FEMA AUTHORITY TO REJECT TRANSFER OF POLICIES.

   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) FEMA Authority to Reject Transfer of Policies.--Notwithstanding any other provision of this Act, the Administrator may, at the discretion of the Administrator, refuse to accept the transfer of the administration of policies for coverage under the flood insurance program under this title that are written and administered by any insurance company or other insurer, or any insurance agent or broker.".

   Inserted: Strike line 23 on page 64 and all that follows through page 65, line 5, and insert the following new section:

   Inserted: SEC. 24. REQUIRING COMPETITION FOR NATIONAL FLOOD INSURANCE PROGRAM POLICIES.

   Inserted: (a) Report.--Not later than the expiration of the 90-day period beginning upon the date of the enactment of this Act, the Administrator of the Federal Emergency Management Agency, in consultation with insurance companies, insurance agents and other organizations with which the Administrator has contracted, shall submit to the Congress a report describing procedures and policies that the Administrator shall implement to limit the percentage of policies for flood insurance coverage under the national flood insurance program that are directly managed by the Agency to not more than 10 percent of the aggregate number of flood insurance policies in force under such program.

   Inserted: (b) Implementation.--Upon submission of the report under subsection (a) to the Congress, the Administrator shall implement the policies and procedures described in the report. The Administrator shall, not later than the expiration of the 12-month period beginning upon submission of such report, reduce the number of policies for flood insurance coverage that are directly managed by the Agency, or by the Agency's direct servicing contractor that is not an insurer, to not more than 10 percent of the aggregate number of flood insurance policies in force as of the expiration of such 12-month period.

   Inserted: (c) Continuation of Current Agent Relationships.--In carrying out subsection (b), the Administrator shall ensure that--

   Inserted: (1) agents selling or servicing policies described in such subsection are not prevented from continuing to sell or service such policies; and

   Inserted: (2) insurance companies are not prevented from waiving any limitation such companies could otherwise enforce to limit any such activity.

   Original wording

   Page 57, after line 2, insert the following new section:

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As printed