S. 1058 – National Flood Insurance Program Consultant Accountability Act of 2017

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Updated April 15, 2026 at 3:16 PM UTC

The National Flood Insurance Program Consultant Accountability Act of 2017 lets the FEMA Administrator end contracts with consultants, attorneys, law firms, or other third‑party companies that work for "Write‑Your‑Own" insurance firms if they act in ways that harm the flood insurance program. The law requires the Administrator to give at least 14 days’ notice and to provide an appeal process, and it removes any obligation to pay the contractor for early termination. The rule applies to any such contracts that start after the law is enacted.

Key Provisions

Defines "covered entity" as any attorney, law firm, consultant, or third‑party company providing services to a Write‑Your‑Own insurance company.
Allows the FEMA Administrator to terminate a covered entity’s contract with a Write‑Your‑Own company if the entity’s conduct is deemed detrimental to the flood insurance program.
Requires the Administrator to give the covered entity at least 14 days’ notice before termination.
Mandates that the Administrator set up an appeal process for entities to challenge a termination decision.
Specifies that no early‑termination payment is required from the Administrator or the Write‑Your‑Own company when a contract is terminated under this authority.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 4, 2017

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SenateIntro Referral

Introduced in Senate

May 4, 2017

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 4, 2017

Bill Text

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Introduced in SenateIssued May 4, 2017

II

115th CONGRESS

1st Session

S. 1058

IN THE SENATE OF THE UNITED STATES

May 4, 2017

Mr. Kennedy introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To authorize the Administrator of the Federal Emergency Management Agency to terminate certain contracts on the basis of detrimental conduct to the National Flood Insurance Program, and for other purposes.

1.

Short title

This Act may be cited as the National Flood Insurance Program Consultant Accountability Act of 2017.

2.

Termination of certain contracts under the National Flood Insurance Program

(a)

In general

Part C of chapter II National Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end the following:

1349.

Termination of contracts

(a)

Definition

In this section—

(1)

the term covered entity means any attorney, law firm, consultant, or third-party company that provides services to a Write Your Own company; and

(2)

the term Write Your Own company means a company participating in the cooperative undertaking between the insurance industry and the Federal Insurance and Mitigation Administration that allows participating property and casualty insurance companies to write and service standard flood insurance policies.

(b)

Termination

(1)

In general

Notwithstanding any other provision of law, the Administrator may terminate a contract or other agreement between a covered entity and a Write Your Own company if the Administrator—

(A)

determines that the covered entity has engaged in conduct that is detrimental to the flood insurance program authorized under chapter I; and

(B)

not later than 14 days before terminating the contract or other agreement, provided notice to the covered entity of the termination.

(2)

Appeal

The Administrator shall establish a process for a covered entity to appeal a termination of a contract or other agreement under paragraph (1).

(3)

Early termination payouts

The Administrator or a Write Your Own company is not required to make any early termination payout to a covered entity with respect to a contract or agreement with the Write Your Own company that the Administrator terminates under paragraph (1).

.

(b)

Effective date; applicability

The amendment made by subsection (a) shall—

(1)

take effect on the date of enactment of this Act; and

(2)

apply to any contract or other agreement between a covered entity and a Write Your Own company (as those terms are defined in section 1349(a) of the National Flood Insurance Act of 1968, as added by subsection (a)) entered into on or after the date of enactment of this Act.