To establish limitations on force-placed insurance.

1. Adds SEC. 110. LIMITATIONS ON FORCE-PLACED INSURANCE at the end of title I

   Adds a section

   In S. 1926 · Placed on Calendar Senate

   (c) Authorization of Appropriations.--There are authorized to be appropriated for each fiscal year such sums as may be necessary to carry out the duties and responsibilities of the Flood Insurance Advocate.

   Inserted: SEC. 110. LIMITATIONS ON FORCE-PLACED INSURANCE.

   Inserted: Section 102(e) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(e)) is amended--

   Inserted: (1) by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively; and

   Inserted: (2) by inserting after paragraph (2) the following:

   Inserted: "(3) Limitations on lenders and servicers.--

   Inserted: "(A) Payments from insurance companies.--An lender or servicer, or an affiliate of a lender or servicer, may not receive a commission or any other payment from an insurance company in connection with securing business under paragraph (2) from the insurance company.

   Inserted: "(B) Purchase from affiliated insurance companies.--

   Inserted: "(i) In general.--Except as provided in clause (ii), a lender or servicer, or an affiliate of a lender or servicer, that purchases insurance under paragraph (2) may not purchase the insurance from an insurance company that is affiliated with the lender or servicer.

   Inserted: "(ii) Exception.--Clause (i) shall not apply to the purchase of insurance under paragraph (2) by a lender or servicer, or an affiliate of a lender or servicer, that is a bank, or a Federal credit union or State credit union (as those terms are defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)), with assets of not more than $1,000,000,000.".

   Original wording

   At the end of title I, add the following:

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As printed