[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1313 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
1st Session
S. 1313
To reauthorize the National Flood Insurance Program, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 7, 2017
Mr. Cassidy (for himself, Mrs. Gillibrand, and Mrs. Capito) introduced
the following bill; which was read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reauthorize the National Flood Insurance Program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Flood Insurance Affordability and
Sustainability Act of 2017''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Extension of national flood insurance program.
TITLE I--ENHANCING THE SOLVENCY AND SUSTAINABILITY OF THE NATIONAL
FLOOD INSURANCE PROGRAM
Sec. 101. Risk transfer.
Sec. 102. Expanded flood insurance participation study.
TITLE II--ENHANCING FLOOD INSURANCE AFFORDABILITY AND ACCESSIBILITY
Sec. 201. Use of premium surcharges.
Sec. 202. Disclosure with respect to the affordability standard.
Sec. 203. Flood risk disclosure.
Sec. 204. Increased cost of compliance.
Sec. 205. Property risk data.
Sec. 206. Mitigation provisions.
Sec. 207. Home structure values.
Sec. 208. Affordability vouchers.
Sec. 209. Coverage limits.
Sec. 210. Monthly installment payment of premiums.
TITLE III--AGREED VALUE PILOT PROGRAM
Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Agreed Value Flood Protection Pilot Program.
Sec. 304. Use of agreed value flood protection to satisfy requirement
to purchase flood insurance to receive a
mortgage loan.
Sec. 305. Agreed Value Flood Protection Program Reserve Fund.
Sec. 306. Rule of construction.
TITLE IV--PROVIDING PRIVATE MARKET ACCESS, ACCOUNTABILITY, AND
COMPETITION
Sec. 401. Use of private flood insurance to satisfy mandatory purchase
requirement.
Sec. 402. Provision of private flood insurance by write your own
companies.
Sec. 403. Availability of NFIP claims data.
Sec. 404. Fees and surcharges for private flood insurance policies.
Sec. 405. Write Your Own Risk Sharing Pilot Program.
TITLE V--MODERNIZING FLOOD MAPPING AND FLOOD RISK ACCURACY
Sec. 501. Reauthorization of National Flood Mapping Program.
Sec. 502. Mapping standards and guidelines for nongovernmental
entities.
Sec. 503. Use of high-resolution mapping technology.
Sec. 504. Protected areas.
Sec. 505. Coastal flood models.
TITLE VI--ENHANCING NATIONAL FLOOD INSURANCE PROGRAM TRANSPARENCY AND
ACCOUNTABILITY
Sec. 601. Deadline for approval of claims.
Sec. 602. Flood insurance transparency, accountability, and reform.
Sec. 603. Reports to Congress.
SEC. 3. DEFINITIONS.
(a) Freestanding Definitions.--In this Act--
(1) the term ``Administrator'' means the Administrator of
the Federal Emergency Management Agency;
(2) the terms ``Federal flood insurance'' and ``private
flood insurance'' have the meanings given those terms in
section 102(b)(7) of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4012a(b)(7)), as amended by section 401(a)(1) of
this Act;
(3) the term ``mandatory purchase requirement'' means the
requirement under subsections (a) and (b) of section 102 of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a), as
amended by section 401 of this Act, to have flood insurance
coverage;
(4) the term ``National Flood Insurance Program'' means the
program established under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.);
(5) the term ``repetitive loss structure'' has the meaning
given the term in section 1370(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4121(a));
(6) the term ``severe repetitive loss structure'' has the
meaning given the term in section 1366(h) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104c(h));
(7) the term ``Standard Flood Insurance Policy'' means the
Standard Flood Insurance Policy set forth in appendix A to part
61 of title 44, Code of Federal Regulations (or any successor
regulation);
(8) the term ``target housing'' means a house structure
that--
(A) is in an area that has been identified by the
Administrator as an area having special flood hazards;
or
(B) has incurred flood damage;
(9) the term ``Write Your Own company'' means a private
property insurance company that participates in the Write Your
Own Program; and
(10) the term ``Write Your Own Program'' means the program
under which the Federal Emergency Management Agency enters into
a standard arrangement with private property insurance
companies to--
(A) sell contracts for Federal flood insurance
under their own business lines of insurance; and
(B) adjust and pay claims arising under the
contracts described in subparagraph (A).
(b) National Flood Insurance Act.--Section 1370(a) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4121(a)) 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 a semicolon; and
(3) by adding at the end the following:
``(16) the term `claim report' means a report created for
the purpose of investigating, adjusting, or processing a claim
under the national flood insurance program, including such
reports produced by adjusters, engineers, surveyors, salvors,
architects, and certified public accountants;
``(17) the term `private flood insurance' has the meaning
given the term in section 102(b) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(b));
``(18) the term `Write Your Own company' means a private
property insurance company that participates in the Write Your
Own Program; and
``(19) the term `Write Your Own Program' means the program
under which the Federal Emergency Management Agency enters into
a standard arrangement with private property insurance
companies to--
``(A) sell contracts for Federal flood insurance
under their own business lines of insurance; and
``(B) adjust and pay claims arising under the
contracts described in subparagraph (A).''.
(c) Technical and Conforming Amendment.--Section 100202(a) of the
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004(a))
is amended by striking paragraph (5) and inserting the following:
``(5) Write your own program.--The term `Write Your Own
Program' means the program under which the Federal Emergency
Management Agency enters into a standard arrangement with
private property insurance companies to--
``(A) sell contracts for Federal flood insurance
under their own business lines of insurance; and
``(B) adjust and pay claims arising under the
contracts described in subparagraph (A).''.
SEC. 4. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.
(a) Financing.--Section 1309(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4016(a)) is amended, in the first sentence, by
striking ``September 30, 2017'' and inserting ``September 30, 2027''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2017'' and inserting ``September 30, 2027''.
TITLE I--ENHANCING THE SOLVENCY AND SUSTAINABILITY OF THE NATIONAL
FLOOD INSURANCE PROGRAM
SEC. 101. RISK TRANSFER.
Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C.
4081) is amended by striking subsection (e) and inserting the
following:
``(e) Risk Transfer.--
``(1) In general.--The Administrator shall annually
transfer a portion of the risk associated with the flood
insurance program to the private reinsurance or capital
markets--
``(A) if the Administrator has determined that the
rates and terms of the transfer are reasonable and
appropriate; and
``(B) in an amount that is sufficient to--
``(i) maintain the ability of the program
to pay claims; and
``(ii) limit the exposure of the program to
potential catastrophic losses from extreme
events.
``(2) Forms of transfer.--In carrying out paragraph (1),
the Administrator shall consider all forms of risk transfer,
including traditional reinsurance, catastrophe bonds,
collateralized reinsurance, resilience bonds, and other
insurance-linked securities, in order to--
``(A) maximize pricing competition and the
diversity of sources of capital; and
``(B) secure the best value for the flood insurance
program.''.
SEC. 102. EXPANDED FLOOD INSURANCE PARTICIPATION STUDY.
(a) In General.--The Administrator, in coordination with the
National Association of Insurance Commissioners, shall conduct a study
that proposes to address, through programmatic and regulatory changes,
how to increase participation in flood insurance coverage, including
flood insurance purchased under the National Flood Insurance Program
and private flood insurance.
(b) Options.--In conducting the study under subsection (a), the
Administrator shall consider the following options:
(1) Expanding participation in flood insurance coverage,
beyond areas having special flood hazards, to areas of moderate
or minimal flood hazard risk.
(2) Automatically enrolling consumers in flood insurance
while providing consumers the opportunity to decline
enrollment.
(3) Bundled flood insurance coverage that diversifies risk
across all or multiple-peril forms.
(c) Report.--Not later than 18 months after the date of enactment
of this Act, the Administrator shall submit a report on the study
conducted under subsection (a) to--
(1) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(2) the Committee on Appropriations of the Senate;
(3) the Committee on Financial Services of the House of
Representatives; and
(4) the Committee on Appropriations of the House of
Representatives.
TITLE II--ENHANCING FLOOD INSURANCE AFFORDABILITY AND ACCESSIBILITY
SEC. 201. USE OF PREMIUM SURCHARGES.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) is amended--
(1) in section 1308A (42 U.S.C. 4015a)--
(A) by redesignating subsection (c) as subsection
(d);
(B) by inserting after subsection (b) the
following:
``(c) Use of Surcharges.--The Administrator shall use any surcharge
imposed and collected under subsection (a) to help fund flood
mitigation programs, including the program established under section
1366.''; and
(C) in subsection (d), as so redesignated, by
striking ``Subsections (a) and (b)'' and inserting
``Subsections (a) through (c)''; and
(2) in section 1310A(c) (42 U.S.C. 4017A(c)), by striking
paragraph (4).
SEC. 202. DISCLOSURE WITH RESPECT TO THE AFFORDABILITY STANDARD.
Section 1308(j) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(j)) is amended, in the second sentence, by inserting ``and
shall include in the report the number of those exceptions as of the
date on which the Administrator submits the report and the location of
each policyholder insured under those exceptions, organized by county
and State'' after ``of the Senate''.
SEC. 203. FLOOD RISK DISCLOSURE.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Administrator shall promulgate regulations for the
disclosure of flood risk hazards with respect to any residential or
commercial property that is offered for sale or lease.
(b) Requirements.--The regulations promulgated under subsection (a)
shall require that, before a purchaser or lessee is obligated under any
contract to purchase or lease a property, the seller or lessor, as
applicable, shall--
(1) provide the purchaser or lessee with a flood risk
information pamphlet produced by the Administrator;
(2) disclose to the purchaser or lessee the available flood
risk profile of the property, including--
(A) information available to the seller or lessor
regarding any past--
(i) flood damage to the property; or
(ii) claim for loss with respect to the
property under--
(I) the National Flood Insurance
Program; or
(II) private flood insurance;
(B) information known to the seller or lessor
regarding any designation of the property as--
(i) a repetitive loss structure; or
(ii) a severe repetitive loss structure;
(C) any elevation certificate obtained with respect
to the property that is available to the seller or
lessor; and
(D) any requirement that the property be covered by
flood insurance because the property owner, on the date
on which the property is sold or leased, or a previous
owner, obtained any form of disaster assistance under
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.); and
(3) establish a 10-day period (or a period of a different
length of time if mutually agreed upon by the parties) during
which the purchaser or lessor may review options for managing
or mitigating flood risk with respect to the property.
(c) Compliance Assurance.--The regulations promulgated under
subsection (a) shall require that, when a seller or lessor has entered
into a contract with an agent to sell or lease a unit of target
housing, the agent shall, on behalf of the seller or lessor, ensure
compliance with this section.
SEC. 204. INCREASED COST OF COMPLIANCE.
(a) Increase in Limitation on Liability.--Not later than 180 days
after the date of enactment of this Act, the Administrator shall amend
the Standard Flood Insurance Policy to--
(1) increase the limitation on liability relating to
``Coverage D--Increased Cost of Compliance'' from $30,000 to
$75,000; and
(2) provide that 50 percent of the amount described in
paragraph (1) shall be available to the insured without regard
to whether making that amount available to the insured would
exceed the overall policy limit of the insured.
(b) Premiums; Coverage Limits.--Section 1304(b) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended--
(1) in paragraph (3), by striking ``compliance with the
land use and control measures.'' and inserting ``the
implementation of such measures; and'';
(2) in paragraph (4), by redesignating subparagraphs (A)
through (D) as clauses (i) through (iv), respectively, and
adjusting the margins accordingly;
(3) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and adjusting the
margins accordingly;
(4) in the matter preceding subparagraph (A), as so
redesignated, by striking ``The national'' and inserting the
following:
``(1) In general.--The national''; and
(5) by striking the flush text following paragraph
(1)(D)(iv), as so redesignated, and inserting the following:
``(2) Premiums.--The Administrator shall charge a premium
on each insured of not more than $75 per policy to provide cost
of compliance coverage in accordance with the provisions of
this subsection.
``(3) Coverage limits.--Any amount of coverage that is
provided under this subsection with respect to a property is in
addition to, and shall not be considered for the purposes of,
any limitation on coverage that is applicable to the property
under section 1306(b).''.
SEC. 205. PROPERTY RISK DATA.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) is amended by adding at the end the following:
``SEC. 1326. PREMIUM CREDIT FOR SUBMITTING PROPERTY RISK DATA.
``(a) In General.--Subject to subsection (b), the Administrator may
offer a policyholder under the national flood insurance program a
premium credit of not more than $500 if the policyholder submits data
and information that is necessary for the Administrator to determine
the level of risk of flood with respect to the property covered by the
policy as of the date on which the policyholder submits the data and
information to the Administrator.
``(b) Limitation.--The Administrator may offer a premium credit
under subsection (a) only once with respect to any building.''.
SEC. 206. MITIGATION PROVISIONS.
(a) Mitigation Strategies.--Section 1361(d)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking ``and'' at the end;
and
(3) by inserting after subparagraph (B) the following:
``(C) with respect to buildings in dense urban
environments, methods that can be deployed on a block
or neighborhood scale; and
``(D) elevation of mechanical systems; and''.
(b) Mitigation Credit.--Section 1308(k) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended--
(1) by striking ``shall take into account'' and inserting
``shall--
``(1) take into account'';
(2) in paragraph (1), as so designated, by striking the
period at the end and inserting ``; and''; and
(3) by adding at the end the following:
``(2) offer a reduction of the risk premium rate charged to
a policyholder in an amount that is not less than 10 percent of
that rate if the policyholder implements any mitigation method
described in paragraph (1).''.
(c) Coverage for Cooperatives.--
(1) In general.--Section 1306 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4013) is amended by adding at
the end the following:
``(e) Cooperatives.--
``(1) Definition.--In this subsection, the term
`cooperative building' has the meaning given the term in
section 1312(d).
``(2) Equal treatment with condominiums.--Notwithstanding
any other provision of law, an owner of a share of a
cooperative building shall be eligible to purchase flood
insurance coverage under the national flood insurance program
on the same terms as a condominium owner.''.
(2) Payment of claims.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019) is amended--
(A) in subsection (c)--
(i) in the subsection heading, by inserting
``and Cooperative'' after ``Condominium'';
(ii) by inserting ``or owners of a share of
a cooperative building'' after ``condominium
owners''; and
(iii) by inserting ``or cooperative
association'' after ``condominium association''
each place that term appears; and
(B) by adding at the end the following:
``(d) Definitions.--In this section, the terms `cooperative
association' and `cooperative building' have the meanings given the
terms by the Administrator.''.
SEC. 207. HOME STRUCTURE VALUES.
(a) Study and Report.--
(1) Study.--The Administrator shall conduct a study, the
purpose of which shall be to--
(A) evaluate best practices in the insurance
industry for risk rating and classification, including
practices that consider replacement cost value when
estimating premium rates; and
(B) with respect to the estimates made by the
Administrator under section 1307(a)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)), as
in effect on the day before the date of enactment of
this Act--
(i) assess options, methods, and strategies
for including replacement cost value in the
estimates;
(ii) identify recommendations for including
replacement cost value in the estimates;
(iii) identify an appropriate methodology
by which replacement cost value could be
incorporated into the estimates; and
(iv) develop a feasible implementation plan
and projected timeline for including
replacement cost value in the estimates.
(2) Report.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report that contains--
(A) the results of the study conducted under
paragraph (1) (referred to in this paragraph as ``the
study'');
(B) an analysis of the recommendations made by the
study and the impacts that those recommendations would
have on the National Flood Insurance Program, including
cost considerations;
(C) a description of actions taken by the
Administrator to implement the recommendations made by
the study;
(D) a list of any recommendations made by the study
that, as of the date on which the Administrator submits
the report, the Administrator has deferred or upon
which the Administrator has not acted; and
(E) an explanatory statement with respect to each
recommendation described in subparagraph (D).
(b) Implementation.--
(1) In general.--Section 1307(a)(1)(A) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is
amended--
(A) in clause (i), by striking ``and'' at the end;
(B) in clause (ii), by striking ``, and'' and
inserting ``; and''; and
(C) by adding at the end the following:
``(iii) the replacement cost value of an
insured structure when determining
underinsurance loading factors, consistent with
the requirements of section 1308(e) and taking
into account the results of the study conducted
under section 206(a)(1) of the Flood Insurance
Affordability and Sustainability Act of 2017;
and''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on the date that is 1 year after the date on
which the Administrator submits the report under subsection
(a)(2).
SEC. 208. AFFORDABILITY VOUCHERS.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.), as amended by section 205 of this Act, is further
amended by adding at the end the following:
``SEC. 1327. AFFORDABILITY VOUCHERS.
``(a) Definitions.--In this section--
``(1) the term `area median income' means, with respect to
an area, the area median income for the area, as defined for
the applicable year by the Secretary of Housing and Urban
Development;
``(2) the term `eligible household' means an owner-occupied
household--
``(A) that has a total household income that is
less than 165 percent of the area median income for the
area in which the household is located;
``(B) for which the cost of flood insurance
premiums, surcharges, and fees in a year would result
in excess costs for the household for that year; and
``(C) that--
``(i) renews an existing flood insurance
policy under the national flood insurance
program for building coverage for a property
that is in an area having special flood
hazards; or
``(ii) purchases a flood insurance policy
under the national flood insurance program for
building coverage for an existing structure
that was owned and occupied by the household
before the date on which the building was
determined to be located in an area having
special flood hazards due to a revision of, or
an update to, a floodplain area or flood risk
zone that is identified, delineated, or
established by the Administrator;
``(3) the term `excess costs' means--
``(A) for a household that has a total household
income that is greater than 80 percent of the area
median income for the area in which the household is
located, the amount by which--
``(i) the sum of--
``(I) the total amount of premiums,
surcharges, and fees paid by a
household in a year with respect to a
flood insurance policy provided under
this title; and
``(II) the housing expenses
incurred by the household in that year;
exceeds
``(ii) 40 percent of the total household
income for the household in that year; and
``(B) for a household that has a total household
income that is not greater than 80 percent of the area
median income for the area in which the household is
located, the amount by which the flood insurance
premiums, surcharges, and fees for a flood insurance
policy provided under this title in a year for the
household exceeds 1 percent of the coverage limit of
that flood insurance policy under section 1306(b); and
``(4) the term `housing expenses' means, with respect to a
household, the total amount that the household spends in a year
on--
``(A) mortgage payments;
``(B) property taxes; and
``(C) homeowners insurance.
``(b) Vouchers.--The Administrator shall, when the Administrator
determines appropriate, provide a voucher to an eligible household in
accordance with subsection (c) to use toward the payment of flood
insurance premiums, surcharges, and fees incurred by the household in
the year for which the voucher is provided.
``(c) Calculation.--
``(1) In general.--Subject to paragraph (2), the
Administrator shall provide a voucher to an eligible household
as follows:
``(A) An eligible household that has a total
household income that is not greater than 80 percent of
area median income shall receive a voucher in an amount
that is equal to 100 percent of the excess costs
incurred by the household for the year preceding the
year in which the eligible household receives the
voucher.
``(B) An eligible household that has a total
household income that is greater than 80 percent of
area median income and not greater than 120 percent of
area median income shall receive a voucher in an amount
that is equal to 80 percent of the excess costs
incurred by the household for the year preceding the
year in which the eligible household receives the
voucher.
``(C) An eligible household that has a total
household income that is greater than 120 percent of
area median income and less than 165 percent of area
median income shall receive a voucher in an amount that
is equal to 60 percent of the excess costs for the year
preceding the year in which the eligible household
receives the voucher.
``(2) Limitation.--The Administrator may not provide a
voucher to an eligible household in an amount that is more than
the total amount that the eligible household paid in premiums,
surcharges, and fees for a flood insurance policy provided
under this title during the year preceding the year in which
the voucher is provided.''.
SEC. 209. COVERAGE LIMITS.
(a) In General.--Section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013) is amended--
(1) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking ``In addition to any other terms and
conditions under subsection (a), such regulations'' and
inserting ``The Administrator'';
(B) in paragraph (2)--
(i) by striking ``shall be made'' and
inserting ``may be made''; and
(ii) by striking ``$250,000'' and inserting
``the baseline amount'';
(C) in paragraph (3)--
(i) by striking ``shall be made'' and
inserting ``may be made''; and
(ii) by striking ``$100,000'' and inserting
``50 percent of the baseline amount''; and
(D) in paragraph (4)--
(i) by striking ``shall be made'' each
place that term appears and inserting ``may be
made''; and
(ii) by striking ``$500,000'' each place
that term appears and inserting ``200 percent
of the baseline amount''; and
(2) by adding at the end the following:
``(e) Definition.--
``(1) In general.--Subject to paragraph (2), in this
section, the term `baseline amount', with respect to a
property, means the maximum original principal obligation of a
conventional mortgage that may be purchased by the Federal
National Mortgage Association in the area in which the property
as located, as established under section 302(b)(2) of the
Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)).
``(2) Clarification.--If, after the date of enactment of
this subsection, the baseline amount, as defined in paragraph
(1), decreases as compared with the baseline amount in effect
on the day before the date of enactment of this subsection, the
baseline amount that was in effect on the day before the date
of enactment of this subsection shall be deemed to be the
baseline amount for the purposes of paragraphs (2), (3), and
(4) of subsection (b).''.
(b) Authority of Administrator To Sell Policies.--The Administrator
may sell a policy for flood insurance under the National Flood
Insurance Program that meets the requirements of paragraphs (2), (3),
and (4) of section 1306(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4013(b)), as amended by subsection (a), without regard to--
(1) section 61.6 of title 44, Code of Federal Regulations,
as in effect on the day before the date of enactment of this
Act; or
(2) any other provision of law.
SEC. 210. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.
Section 1308(g) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(g)) is amended--
(1) by striking ``With respect to'' and inserting the
following:
``(1) Annual or monthly option.--Subject to paragraph (2),
with respect to''; and
(2) by adding at the end the following:
``(2) Monthly installment.--With respect to a policyholder
that opts under paragraph (1) to pay premiums on a monthly
basis, the Administrator may charge the policyholder an annual
fee of not more than $15.
``(3) Exemption from rule making; pilot program.--During
the period beginning on the date of enactment of this paragraph
and ending on the date on which the Administrator promulgates
regulations carrying out paragraph (1), the Administrator may,
notwithstanding any other provision of law--
``(A) adopt policies and procedures to carry out
that paragraph without--
``(i) undergoing notice and comment rule
making under section 553 of title 5, United
States Code; or
``(ii) conducting regulatory analyses
otherwise required by statute, regulation, or
Executive order; or
``(B) carry out that paragraph by establishing a
pilot program that gradually implements the
requirements of that paragraph.''.
TITLE III--AGREED VALUE PILOT PROGRAM
SEC. 301. SHORT TITLE.
This title may be cited as the ``Agreed Value Flood Protection
Program Act of 2017''.
SEC. 302. DEFINITIONS.
In this title--
(1) the term ``agreed value flood protection policy'' means
a flood protection policy providing that, if a flood occurs,
the National Flood Insurance Program will make payments
according to agreed schedules of payments determined by flood
height in covered structures participating in the Program;
(2) the term ``catastrophic loss year'' means a year in
which the combined ratio is not less than 130 percent;
(3) the term ``combined ratio'' means the quotient obtained
when the sum obtained by adding the losses paid under the
National Flood Insurance Program in a year and the expenses of
the National Flood Insurance Program in that year is divided by
the total amount of premiums collected under the National Flood
Insurance Program in that year;
(4) the term ``covered agent'' means any insurance agent,
producer, or intermediary licensed by a State;
(5) the term ``covered structure'' means real property
eligible for flood insurance coverage under the National Flood
Insurance Program;
(6) the term ``eligible participant'' means a person that
has demonstrated ownership of a covered structure;
(7) the term ``flood height'' means the distance between
the lowest adjacent grade and the high water mark of a flood on
the first floor of a covered structure, as measured or as
determined by other appropriate methods;
(8) the term ``Program'' means the Agreed Value Flood
Protection Program established under section 303(a); and
(9) the term ``Reserve Fund'' means the Agreed Value Flood
Protection Program Reserve Fund established under section
305(a).
SEC. 303. AGREED VALUE FLOOD PROTECTION PILOT PROGRAM.
(a) In General.--The Administrator may establish and carry out an
optional Agreed Value Flood Protection Pilot Program for the 8-year
period beginning on the date of enactment of this Act, or during the
period beginning on the date of enactment of this Act and ending on the
date on which authorization for the National Flood Insurance Program
expires, whichever is shorter, under which--
(1) an eligible participant may purchase an agreed value
flood protection policy to protect against losses resulting
from physical damage to, or loss of, a covered structure,
including any personal property related thereto, owned by the
eligible participant arising from a flood occurring in the
United States during the period for which the policy is in
force;
(2) a covered agent may issue an agreed value flood
protection policy to an eligible participant; and
(3) an eligible participant may not be denied the
opportunity to purchase an agreed value flood protection policy
solely on the basis of the geographic location of the eligible
participant.
(b) Eligibility.--In order to purchase an agreed value flood
protection policy, an eligible participant shall demonstrate that the
value of the covered structure to be covered under the policy,
including any contents within the covered structure, is not less than
the coverage amount of the policy.
(c) Issuance.--
(1) In general.--Except as provided in paragraph (2), any
covered agent may issue an agreed value flood protection policy
to an eligible participant under the Program.
(2) Exception.--A covered agent may not issue a policy
under paragraph (1) if the structure with respect to which the
policy would apply is insured under the National Flood
Insurance Program.
(d) Brochure.--
(1) In general.--The Administrator shall publish a brochure
that compares the premium rates charged under the National
Flood Insurance Program with the premium rates charged under
the Program.
(2) Covered agents.--
(A) In general.--A covered agent shall explain to
an eligible participant the risks associated with an
agreed value flood protection policy before the
eligible participant purchases a policy.
(B) Delivery.--If a covered agent delivers the
brochure published under paragraph (1) to an eligible
participant before the eligible participant purchases
an agreed value flood protection policy, the delivery
shall constitute prima facie evidence that the covered
agent has satisfied the requirement under subparagraph
(A).
(e) Report.--Not later than 1 year after the date on which the
Program ends, the Administrator shall submit to Congress a report--
(1) containing data that was collected during the
administration of the Program relating to underinsurance
factors, claims statistics, claims disputes (including how such
disputes were adjudicated), and actuarial rate reviews; and
(2) that compares premium rates charged under the Program
with comparable premium rates charged under the standard flood
insurance policy, controlling for comparable risk factors.
SEC. 304. USE OF AGREED VALUE FLOOD PROTECTION TO SATISFY REQUIREMENT
TO PURCHASE FLOOD INSURANCE TO RECEIVE A MORTGAGE LOAN.
An agreed value flood protection policy shall satisfy the mandatory
purchase requirement.
SEC. 305. AGREED VALUE FLOOD PROTECTION PROGRAM RESERVE FUND.
(a) Establishment of an Agreed Value Flood Protection Reserve
Fund.--In carrying out the Program, the Administrator shall establish
in the Treasury of the United States an Agreed Value Flood Protection
Program Reserve Fund, which shall be--
(1) separate from any other accounts or funds available to
the Administrator; and
(2) available for meeting the expected future obligations
of the Program, including--
(A) the payment of claims during catastrophic loss
years; and
(B) the repayment of amounts outstanding under any
note or other obligation issued by the Administrator
under section 1309(a) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4016(a)).
(b) Reserve Ratio.--Subject to the phase-in requirements under
subsection (d), the Reserve Fund shall maintain a balance that,
together with any risk financing covering the Program, is an amount
that is equal to--
(1) 1.5 percent of the sum of the total potential loss
exposure of all outstanding agreed value flood protection
policies in force during the prior fiscal year; or
(2) a higher percentage of the sum described in paragraph
(1) that the Administrator determines to be appropriate, taking
into consideration any circumstance that may raise a
significant risk of substantial future losses to the Reserve
Fund.
(c) Maintenance of Reserve Ratio.--
(1) In general.--The Administrator may establish, increase,
or decrease the amount of aggregate annual policy charges to be
collected for any fiscal year that are necessary in order to--
(A) maintain the amount required under subsection
(b); and
(B) if the balance of the Reserve Fund is an amount
that is less than the amount required under subsection
(b), obtain the amount required under subsection (b).
(2) Considerations.--In exercising the authority under
paragraph (1), the Administrator shall consider--
(A) the expected operating expenses of the Reserve
Fund;
(B) the covered loss expenditures under the
Program;
(C) any investment income generated under the
Program; and
(D) any other factor that the Administrator
determines appropriate.
(3) Limitation.--Notwithstanding any other provision of law
or any agreement entered into by the Administrator, the
Administrator shall ensure that all amounts attributable to the
establishment or increase of annual policy charges under
paragraph (1) are transferred to the Administrator for deposit
into the Reserve Fund to be available for meeting the expected
future obligations of the Program, as described in subsection
(a)(2).
(d) Phase-In Requirements.--The phase-in requirements under this
subsection are as follows:
(1) In general.--Beginning in fiscal year 2018, and in each
successive fiscal year thereafter until the amount required
under subsection (b) is obtained, the Administrator shall
deposit in the Reserve Fund an amount that is not less than 10
percent of the amount required under subsection (b).
(2) Amount satisfied.--Except as provided in paragraph (3),
beginning on the date on which the amount required under
subsection (b) is obtained, the Administrator shall not be
required to set aside any amounts for the Reserve Fund.
(3) Exception.--If, at any time during any fiscal year
after the amount required under subsection (b) is obtained, the
amount in the Reserve Fund is less than the amount required
under subsection (b), the Administrator shall deposit in the
Reserve Fund during that fiscal year an amount that is not less
than the lesser of--
(A) the difference between the amount required
under subsection (b) and the amount in the Reserve
Fund; or
(B) 10 percent of the amount required under
subsection (b).
(e) Limitation on Reserve Ratio.--If, in any fiscal year, the
Administrator determines that the amount required under subsection (b)
cannot be obtained, the Administrator shall submit to Congress a report
that--
(1) describes and details the specific concerns of the
Administrator regarding the consequences of that amount not
being obtained;
(2) demonstrates how the consequences described in
paragraph (1) would harm the long-term financial soundness of
the Program; and
(3) indicates the maximum attainable amount for that fiscal
year.
(f) Investment.--The Secretary of the Treasury shall invest such
amounts of the Reserve Fund as the Secretary determines advisable in
obligations issued or guaranteed by the United States.
SEC. 306. RULE OF CONSTRUCTION.
Nothing in this title may be construed to--
(1) limit the National Flood Insurance Program, including
the ability of a person to purchase flood insurance under the
National Flood Insurance Program to satisfy the mandatory
purchase requirement; or
(2) require a person to participate in the Program.
TITLE IV--PROVIDING PRIVATE MARKET ACCESS, ACCOUNTABILITY, AND
COMPETITION
SEC. 401. USE OF PRIVATE FLOOD INSURANCE TO SATISFY MANDATORY PURCHASE
REQUIREMENT.
(a) In General.--
(1) Mandatory purchase requirement.--
(A) Amount and term of coverage.--Section 102 of
the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a) is amended by striking ``Sec. 102. (a)'' and
all that follows through the end of subsection (a) and
inserting the following:
``Sec. 102. (a) Amount and Term of Coverage.--
``(1) In general.--Subject to paragraph (2), on and after
the date that is 60 days after the date of enactment of this
Act, no Federal officer or agency may approve any financial
assistance for acquisition or construction purposes for use in
any area that has been identified by the Administrator as an
area having special flood hazards and in which the sale of
flood insurance has been made available under the National
Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), unless
the building or mobile home and any personal property to which
the financial assistance relates is covered by flood insurance.
``(2) Amount and term.--
``(A) Amount generally.--The amount of flood
insurance required under paragraph (1)--
``(i) in the case of Federal flood
insurance, shall be not less than the lesser
of--
``(I) 80 percent of the purchase
price of the property;
``(II) the development or project
cost of the building, mobile home, or
personal property (less estimated land
cost);
``(III) the maximum limit of
Federal flood insurance coverage made
available with respect to the
particular type of property; or
``(IV) for multi-unit structures
only, the outstanding principal balance
of the loan; or
``(ii) in the case of private flood
insurance, shall be not less than the lesser
of--
``(I) 80 percent of the purchase
price of the property;
``(II) the development or project
cost of the building, mobile home, or
personal property (less estimated land
cost);
``(III) the maximum limit of
Federal flood insurance coverage made
available with respect to the
particular type of property; or
``(IV) for multi-unit structures
only, the outstanding principal balance
of the loan.
``(B) Loans and insured and guaranteed loans.--If
the financial assistance described in paragraph (1) is
in the form of a loan or an insurance or guaranty of a
loan, flood insurance need not be required beyond the
term of the loan.
``(C) Term generally.--The requirement of
maintaining flood insurance under paragraph (1) shall
apply during the life of the property, regardless of
transfer of ownership of the property.''.
(B) Mortgage loans.--Section 102(b) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)) is
amended--
(i) by striking paragraphs (1) through (5)
and inserting the following:
``(1) Regulated lending institutions.--
``(A) In general.--Each Federal entity for lending
regulation (after consultation and coordination with
the Financial Institutions Examination Council
established under section 1004 of the Federal Financial
Institutions Examination Council Act of 1974 (12 U.S.C.
3303)) shall by regulation direct regulated lending
institutions not to make, increase, extend, or renew
any loan secured by improved real estate or a mobile
home located or to be located in an area that has been
identified by the Administrator as an area having
special flood hazards and in which flood insurance has
been made available under the National Flood Insurance
Act of 1968 (42 U.S.C. 4001 et seq.), unless the
building or mobile home and any personal property
securing the loan is covered for the term of the loan
by flood insurance in an amount described in
subparagraph (B).
``(B) Amount.--The amount of flood insurance
required under subparagraph (A)--
``(i) in the case of Federal flood
insurance, shall be not less than the lesser
of--
``(I) 80 percent of the purchase
price of the property;
``(II) the maximum limit of Federal
flood insurance coverage made available
with respect to the particular type of
property; or
``(III) for multi-unit structures
only, the outstanding principal balance
of the loan; or
``(ii) in the case of private flood
insurance, shall be not less than the lesser
of--
``(I) 80 percent of the purchase
price of the property;
``(II) the maximum limit of Federal
flood insurance coverage made available
with respect to the particular type of
property; or
``(III) for multi-unit structures
only, the outstanding principal balance
of the loan.
``(2) Federal agency lenders.--
``(A) In general.--
``(i) Insurance required.--A Federal agency
lender may not make, increase, extend, or renew
any loan secured by improved real estate or a
mobile home located or to be located in an area
that has been identified by the Administrator
as an area having special flood hazards and in
which flood insurance has been made available
under the National Flood Insurance Act of 1968
(42 U.S.C. 4001 et seq.), unless the building
or mobile home and any personal property
securing the loan is covered for the term of
the loan by flood insurance in accordance with
paragraph (1).
``(ii) Regulations.--
``(I) In general.--Each Federal
agency lender may issue any regulations
necessary to carry out this paragraph.
``(II) Consistency.--Any
regulations issued under subclause (I)
shall be consistent with and
substantially identical to any
regulations issued under paragraph (1).
``(B) Requirement to accept flood insurance.--Each
Federal agency lender shall accept flood insurance as
satisfaction of the flood insurance coverage
requirement under subparagraph (A)(i) if the flood
insurance coverage meets the requirements for coverage
under that subparagraph.
``(3) Government-sponsored enterprises for housing.--
``(A) Implementation of procedures.--
``(i) Requirement.--The Federal National
Mortgage Association and the Federal Home Loan
Mortgage Corporation shall implement procedures
reasonably designed to ensure that, for any
loan described in clause (ii) that is purchased
or guaranteed by such entity, the building or
mobile home and any personal property securing
the loan is covered for the term of the loan by
flood insurance in the amount provided in
paragraph (1)(B).
``(ii) Secured loan.--A loan described in
this clause is a loan secured by improved real
estate or a mobile home located in an area--
``(I) that has been identified, at
the time of the origination of the loan
or at any time during the term of the
loan, by the Administrator as an area
having special flood hazards; and
``(II) in which flood insurance is
made available under the National Flood
Insurance Act of 1968 (42 U.S.C. 4001
et seq.).
``(B) Acceptable insurance.--Subject to
subparagraph (C), the Federal National Mortgage
Association and the Federal Home Loan Mortgage
Corporation shall accept flood insurance as
satisfaction of the flood insurance coverage
requirement under paragraph (1) if the flood insurance
coverage provided meets the requirements for coverage
under that paragraph and any requirements established
by the Federal National Mortgage Association or the
Federal Home Loan Corporation, respectively, relating
to the financial strength of private insurance
companies from which the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation will accept private flood insurance.
``(C) Relation to state law.--A requirement
described in subparagraph (B) may not affect or
conflict with any State law, regulation, or procedure
concerning the regulation of the business of insurance.
``(4) Applicability.--
``(A) Existing coverage.--Except as provided in
subparagraph (B), paragraph (1) shall apply on the date
of enactment of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4701 et
seq.).
``(B) New coverage.--Paragraphs (2) and (3) shall
apply only with respect to any loan made, increased,
extended, or renewed after the expiration of the 1-year
period beginning on the date of enactment of the Riegle
Community Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4701 et seq.). Paragraph (1) shall
apply with respect to any loan made, increased,
extended, or renewed by any lender supervised by the
Farm Credit Administration only after the expiration of
the period under this subparagraph.
``(C) Continued effect of regulations.--
Notwithstanding any other provision of this subsection,
the regulations to carry out paragraph (1), as in
effect immediately before the date of enactment of the
Riegle Community Development and Regulatory Improvement
Act of 1994 (12 U.S.C. 4701 et seq.), shall continue to
apply until the regulations issued to carry out
paragraph (1), as amended by section 522(a) of such
Act, take effect.
``(5) Rule of construction.--
``(A) In general.--Subject to subparagraph (B),
nothing in this subsection shall be construed to
supersede or limit the authority of a Federal entity
for lending regulation, the Federal Housing Finance
Agency, a Federal agency lender, the Federal National
Mortgage Association, or the Federal Home Loan Mortgage
Corporation to establish requirements relating to the
financial strength of private insurance companies from
which the entity or agency will accept private flood
insurance.
``(B) Relation to state law.--A requirement
described in subparagraph (A) may not affect or
conflict with any State law, regulation, or procedure
concerning the regulation of the business of
insurance.''; and
(ii) by striking paragraph (7) and
inserting the following:
``(7) Definitions.--In this section:
``(A) Federal flood insurance.--The term `Federal
flood insurance' means an insurance policy made
available under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.).
``(B) Flood insurance.--The term `flood insurance'
means--
``(i) Federal flood insurance; and
``(ii) private flood insurance.
``(C) Private flood insurance.--The term `private
flood insurance' means an insurance policy that--
``(i) is issued by an insurance company
that is--
``(I) licensed, admitted, or
otherwise approved to engage in the
business of insurance in the State in
which the insured building is located,
by the insurance regulator of that
State; or
``(II) eligible as a nonadmitted
insurer to provide insurance in the
home State of the insured, in
accordance with sections 521 through
527 of the Nonadmitted and Reinsurance
Reform Act of 2010 (15 U.S.C. 8201
through 8206);
``(ii) is issued by an insurance company
that is not otherwise disapproved as a surplus
lines insurer by the insurance regulator of the
State in which the property to be insured is
located; and
``(iii) provides flood insurance coverage
that complies with the laws and regulations of
that State.
``(D) State.--The term `State' means any State of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the Northern Mariana
Islands, the Virgin Islands, and American Samoa.''.
(2) Effect of private flood insurance coverage on
continuous coverage requirements.--Section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by
adding at the end the following:
``(n) Effect of Private Flood Insurance Coverage on Continuous
Coverage Requirements.--For purposes of applying any statutory,
regulatory, or administrative continuous coverage requirement,
including under section 1307(g)(1), the Administrator shall consider
any period during which a property was continuously covered by private
flood insurance to be a period of continuous coverage.''.
(b) Report on Level of Perceived Adverse Selection.--Not later than
2 years after the date of enactment of this Act, the Administrator
shall submit to Congress a report on the extent to which, of the
properties that are required to satisfy the mandatory purchase
requirement, the properties for which private flood insurance is
purchased tend to be at a lower risk of flooding than the properties
for which Federal flood insurance is purchased (commonly referred to as
``adverse selection''), by detailing risk classifications of private
flood insurance policies.
SEC. 402. PROVISION OF PRIVATE FLOOD INSURANCE BY WRITE YOUR OWN
COMPANIES.
(a) Temporary Authority for Provision of Private Flood Insurance by
Write Your Own Companies for Certain Properties.--During the first 2
years beginning after the date of enactment of this Act, the
Administrator may not prohibit a Write Your Own company from offering
or selling private flood insurance outside of the Write Your Own
Program for properties that are described in subparagraphs (A) through
(D) of section 1307(a)(2) of the National Flood Insurance Act of 1968
(42 U.S.C. 4014(a)(2)).
(b) Authority for Expanded Provision of Private Flood Insurance by
Write Your Own Companies.--On and after January 1 of the third year
beginning after the date of enactment of this Act, if the Administrator
determines, based on the report required under subsection (d)(1) and
any other independent data available, that the provision of private
flood insurance by a Write Your Own company--
(1) to properties in addition to the properties described
in subsection (a) will not adversely impact the ability of the
National Flood Insurance Program to maintain a diverse risk
pool, the Administrator may waive any remaining restriction,
under a Federal statute or regulation, on the ability of a
Write Your Own company to offer or sell private flood insurance
outside the Write Your Own Program, if the Administrator
promulgates regulations to ensure a diverse risk pool for Write
Your Own companies that are competing with the National Flood
Insurance Program; or
(2) is a deterrent to the National Flood Insurance Program
maintaining a diverse risk pool of policies, the Administrator
may place further restrictions on the ability of a Write Your
Own company to offer or sell private flood insurance.
(c) WYO Arrangement.--The Administrator shall amend article XIII of
the WYO Company Financial Assistance/Subsidy Arrangement as necessary
to implement subsections (a) and (b).
(d) Reports.--
(1) Initial report.--Not later than the last day of the 2-
year period described in subsection (a), the Administrator
shall submit to Congress a report detailing the risk
classifications of properties for which private flood insurance
was sold and underwritten by Write Your Own companies during
that 2-year period.
(2) Additional report.--Not later than 5 years after the
date on which the report is required to be submitted under
paragraph (1), the Administrator shall submit to Congress a
report detailing the risk classifications of properties for
which private flood insurance was sold and underwritten by
Write Your Own companies during that 5-year period.
SEC. 403. AVAILABILITY OF NFIP CLAIMS DATA.
(a) Study Required.--
(1) In general.--The Administrator shall study the
feasibility of selling or licensing the use of historical
structure-specific National Flood Insurance Program claims data
(referred to in this section as ``covered claims data'') to
nongovernmental entities.
(2) Contents.--In conducting the study required under
paragraph (1), the Administrator shall, at a minimum--
(A) investigate one or more methods of providing
the most specific covered claims data possible while
reasonably protecting policyholder privacy;
(B) review existing means, as of the date of
enactment of this Act, by which the Federal Government
provides leases or licenses to private persons, and the
various regulations, terms, conditions, and guidance
employed;
(C) identify potential uses for covered claims
data, any known risks concerning those uses, and ways
to mitigate or eliminate the risks;
(D) identify mechanisms for determining the likely
market value for access to covered claims data; and
(E) recommend actions the Administrator could take,
if any, to prevent unintended consequences associated
with the sale or licensing for private insurance
purposes covered claims data.
(b) Report by Administrator.--
(1) Report required.--Not later than 1 year after the date
of enactment of this Act, the Administrator shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report that contains the results and
conclusions of the study conducted under subsection (a)
(referred to in this subsection as ``the study'').
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) an analysis of--
(i) the recommendations of the study; and
(ii) the potential for covered claims data
to increase the number of individuals insured
against the peril of flood, to reduce the
amount of debt the National Flood Insurance
Program is required to service, or both;
(B) a description of actions taken by the
Administrator to implement any of the recommendations
of the study; and
(C) any recommendations of the study that, as of
the date on which the report is submitted, have been
deferred or not acted upon, together with an
explanatory statement.
(c) Authorization To Sell or License Claims Data.--
(1) Amendments.--
(A) In general.--Section 1313 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4020) is amended--
(i) by striking ``The Administrator'' and
inserting the following:
``(a) In General.--The Administrator''; and
(ii) by adding at the following:
``(b) Selling or Licensing of Claims Data.--
``(1) In general.--The Administrator may sell or license
the use of historical structure-specific claims data obtained
and maintained by the National Flood Insurance Program
(referred to in this subsection as `covered claims data') to
nongovernmental entities as the Administrator determines is
appropriate and in the public interest.
``(2) Rules, procedures.--The Administrator may adopt
rules, terms, conditions, policies, and procedures concerning--
``(A) the selling or licensing of covered claims
data; and
``(B) the use, protection, and maintenance of
covered claims data by nongovernmental entities.
``(3) Proceeds.--The Administrator shall deposit the
proceeds from selling or licensing covered claims data under
this subsection in the National Flood Insurance Fund.''.
(B) Funding.--Section 1310 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017) is amended--
(i) in subsection (a)--
(I) in paragraph (7), by striking
``and'' at the end;
(II) in paragraph (8), by striking
the period at the end and inserting ``;
and''; and
(III) by adding at the end the
following:
``(9) for carrying out section 1313.''; and
(ii) in subsection (b)--
(I) in paragraph (5), by striking
``and'' at the end;
(II) by redesignating paragraph (6)
as paragraph (7); and
(III) by inserting after paragraph
(5) the following:
``(6) proceeds from the sale or licensing of historical
structure-specific claims data, as authorized under section
1313(b); and''.
(2) Effective date.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by paragraph (1) shall take
effect on the date on which the Administrator publishes
in the Federal Register a certification that the
Administrator has--
(i) submitted the report required under
subsection (b);
(ii) determined that it is legally and
practically feasible to implement a program to
sell or license the use of covered claims data
to nongovernmental entities; and
(iii) determined that a program described
in subparagraph (B) would be in the public
interest.
(B) Credits to fund.--The amendment made by clause
(ii) of paragraph (1)(B) shall take effect on the date
of enactment of this Act.
SEC. 404. FEES AND SURCHARGES FOR PRIVATE FLOOD INSURANCE POLICIES.
(a) Surcharges.--Section 1308A(a) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015a(a)) is amended--
(1) by striking ``The Administrator'' and inserting the
following:
``(1) Collection on nfip policies.--The Administrator'';
and
(2) by adding at the end the following:
``(2) Collection on private policies.--
``(A) In general.--An insurance company that issues
a policy for private flood insurance shall impose and
collect an annual surcharge, in the amount provided in
subsection (b), on a private flood insurance policy.
``(B) In addition to increased cost of compliance
surcharge.--The surcharge imposed under subparagraph
(A) shall be in addition to the surcharge imposed under
section 1304(c) and any other assessments and
surcharges applied to such coverage.
``(C) Federal equivalency fee payable to
administrator.--Not later than 180 days after the date
on which an insurance company collects a surcharge
under subparagraph (A), the insurance company shall
transfer the amount of the surcharge to the
Administrator, who shall deposit the amount in the
National Flood Insurance Fund established under section
1310.
``(D) Information.--The Administrator may require
the provision of such information as the Administrator
decides is necessary to verify that a surcharge imposed
and collected under subparagraph (A) has been imposed
and collected at the proper time and in the proper
amount.
``(E) Cost of collecting surcharge.--No portion of
the surcharge collected under subparagraph (A) may be
retained by the insurance company for the costs of
collecting, handling, or remitting the surcharge except
for interest accruing to the company after collection
and before remittance.''.
(b) Federal Policy Fee.--Section 1307(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014(a)) is amended--
(1) in paragraph (1)(B)(iii), by striking ``shall be
recovered by'' and all that follows and inserting ``shall be
recovered--
``(I) in the case of a policy under
the national flood insurance program,
by a fee that--
``(aa) shall be charged to
policyholders; and
``(bb) shall not be subject
to any agents' commissions,
company expense allowances, or
State or local premium taxes;
and
``(II) in the case of a private
flood insurance policy, by a fee--
``(aa) that shall be--
``(AA) charged to
policyholders;
``(BB) collected by
the insurance company
that issued the policy;
and
``(CC) transferred,
not later than 180 days
after the date on which
the fee is collected,
to the Administrator,
who shall deposit the
amount of the fee in
the National Flood
Insurance Fund
established under
section 1310;
``(bb) that shall not be
subject to any agents'
commissions, company expense
allowances, or State or local
premium taxes; and
``(cc) with respect to
which--
``(AA) the
Administrator may
require the provision
of such information as
the Administrator
decides is necessary to
verify that the fee has
been imposed and
collected at the proper
time and in the proper
amount; and
``(BB) no portion
may be retained by the
insurance company that
collected the fee for
the costs of
collecting, handling,
or remitting the fee
except for interest
accruing to the company
after collection and
before remittance;
and''; and
(2) in paragraph (2), in the matter preceding subparagraph
(A), by inserting ``, including a fee charged to policyholders
of private flood insurance in a manner that is consistent with
paragraph (1)(B)(iii)(II),'' after ``policyholders''.
(c) Increased Cost of Compliance Coverage Under Private Policies.--
Section 102(b)(7)(C) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(b)(7)(C)), as amended by section 401 of this Act, is
amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iv) provides ordinance and law coverage
that meets or exceeds increased cost of
compliance coverage provided under a standard
flood insurance policy under the national flood
insurance program''.
(d) Applicability.--The amendments made by subsections (a), (b),
and (c) shall apply with respect to a private flood insurance policy
that is newly issued or renewed after the date of enactment of this
Act.
(e) Technical and Conforming Amendments.--
(1) Premium surcharge.--Section 1308A(a)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015a(a)(1)), as so
designated by subsection (a)(1) of this section, is amended, in
the second sentence, by striking ``section 1304(b)'' and
inserting ``section 1304(c)''.
(2) National flood insurance fund.--Section 1310(b) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4017(b)), as
amended by section 403(c)(1)(B)(ii) of this Act, is amended--
(A) in paragraph (6), as so designated, by striking
``and'' at the end;
(B) by redesignating paragraph (7) as paragraph
(9); and
(C) by inserting after paragraph (6) the following:
``(7) surcharges collected under section 1308A(a)(2);
``(8) fees collected under section 1307(a)(1)(B)(iii);
and''.
SEC. 405. WRITE YOUR OWN RISK SHARING PILOT PROGRAM.
(a) Definition.--In this section--
(1) the term ``excess flood insurance policy'' means a
flood insurance policy sold under the Pilot Program; and
(2) the term ``Pilot Program'' means the Write Your Own
Risk Sharing Pilot Program established under subsection (b).
(b) Establishment.--The Administrator shall establish and conduct a
pilot program under the National Flood Insurance Program, to be known
as the ``Write Your Own Risk Sharing Pilot Program'', to make available
a flood insurance policy applying only to loss or damage in excess of
not less than $50,000 for sale by Write Your Own companies that agree
to participate in the Pilot Program.
(c) Eligibility To Participate in Pilot Program.--The Administrator
may establish terms, conditions, and eligibility criteria for Write
Your Own companies participating in the Pilot Program.
(d) Terms and Conditions of Excess Flood Policy.--
(1) Chargeable rates.--The chargeable rate for an excess
flood insurance policy sold in an area (or subdivision thereof)
shall be not less than the applicable estimated risk premium
rate for the area (or subdivision thereof) under section
1307(a)(1) of the National Flood Insurance Act of 1968 (42
U.S.C. 4014(a)(1)).
(2) Application of surcharges and fees.--Any surcharge or
fee, with respect to an excess flood insurance policy, charged
to a policyholder participating in the Pilot Program for a
period shall be reduced by the amount of any surcharge for a
private flood insurance policy under section 1308A(a)(2) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015a(a)(2))
(as added by section 404) or fee for a private flood insurance
policy under section 1307(a)(1)(B)(iii) of that Act (42 U.S.C.
4014(a)(1)(B)(iii)) (as amended by section 404), respectively,
paid by the policyholder for coverage during the same period.
(3) Terms and conditions of insurance.--
(A) In general.--An excess flood insurance policy
shall have the same coverages, exclusions, and
limitations as the Standard Flood Insurance Policy
insofar as the Policy relates to the requirements of
this section.
(B) Coverage amounts.--Coverage amounts for an
excess flood insurance policy shall not exceed the
coverage amounts established under section 1306(b) of
the National Flood Insurance Act of 1968 (42 U.S.C.
4013(b)).
(4) Underlying policy requirement.--An excess flood
insurance policy sold under the Pilot Program shall require the
insured to carry primary flood insurance that--
(A) provides a maximum coverage limit of not less
than $50,000;
(B) is issued by a Write Your Own company; and
(C) complies with any other conditions adopted by
the Administrator.
(e) Authority.--The Administrator shall carry out the Pilot Program
as authorized by and in accordance with the National Flood Insurance
Act of 1968 (42 U.S.C. 4001 et seq.) insofar as that Act relates to
this section, subject to the modifications made by this section.
(f) Implementation.--The Administrator shall make policies
available for sale to the public under the Pilot Program not later than
18 months after the date of enactment of this Act.
(g) Sunset.--The Administrator may not issue or renew contracts for
flood insurance under the Pilot Program--
(1) on and after the date is 5 years after the date
contracts for flood insurance under this section are made
available for purchase; and
(2) at any time after the expiration of the National Flood
Insurance Program under section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026).
(h) Report.--Not later than 180 days after the date on which the
authority for the Pilot Program terminates under subsection (g), the
Administrator shall submit to Congress a report on--
(1) the aggregate amount of premiums, surcharges, and fees
charged under the Pilot Program; and
(2) claims loss data experienced by the Write Your Own
companies participating in the Pilot Program and the National
Flood Insurance Program on policies sold under the Pilot
Program.
TITLE V--MODERNIZING FLOOD MAPPING AND FLOOD RISK ACCURACY
SEC. 501. REAUTHORIZATION OF NATIONAL FLOOD MAPPING PROGRAM.
Section 100216(f) of the Biggert-Waters Flood Insurance Reform Act
of 2012 (42 U.S.C. 4101b(f)) is amended--
(1) by striking ``to carry out this section $400,000,000''
and inserting the following: ``to carry out this section--
``(1) $400,000,000''; and
(2) by striking the period at the end and inserting the
following: ``; and
``(2) $500,000,000 for each of fiscal years 2018 through
2027.''.
SEC. 502. MAPPING STANDARDS AND GUIDELINES FOR NONGOVERNMENTAL
ENTITIES.
Section 100215 of the Biggert-Waters Flood Insurance Reform Act of
2012 (42 U.S.C. 4101a) is amended by adding at the end the following:
``(m) Private or Community Flood Maps.--
``(1) Standards and procedures.--In addition to the other
duties of the Council under this section, not later than 1 year
after the date of enactment of this subsection, the Council
shall develop and establish a set of standards, guidelines, and
procedures for--
``(A) State and local governments, federally or
State-recognized metropolitan planning organizations
(commonly known as `MPOs'), federally or State-
recognized councils of local governments, and federally
or State-recognized rural transportation planning
organizations to use in mapping flood risks and
developing alternative maps to the flood insurance rate
maps developed by the Administrator; and
``(B) certification, by the Administrator not later
than 90 days after the date on which a map developed
under subparagraph (A) is submitted to the
Administrator, for use under the National Flood
Insurance Program in the case of any area covered by a
flood insurance rate map developed or approved by the
Administrator that has not been updated or reissued
during the preceding 3-year period.
``(2) Treatment.--On and after the date on which the
Administrator certifies a map under paragraph (1)(B), the map--
``(A) shall be considered the flood insurance rate
map in effect for all purposes of the National Flood
Insurance Program with respect to the area covered by
the map; and
``(B) may not be revised, updated, or replaced in
accordance with the standards, guidelines, and
procedures established under paragraph (1) before the
expiration of the 3-year period beginning on that date
of certification.
``(3) Exemption from rulemaking.--Until the date on which
the Administrator promulgates regulations implementing
paragraphs (1) and (2), the Administrator may adopt policies
and procedures, notwithstanding any other provision of law,
necessary to implement those paragraphs without regard to
section 553 of title 5, United States Code, and without
conducting regulatory analyses otherwise required by statute,
regulation, or Executive order.''.
SEC. 503. USE OF HIGH-RESOLUTION MAPPING TECHNOLOGY.
(a) In General.--Section 100216(b)(1) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)) is amended--
(1) in subparagraph (A)(i), by inserting ``subject to
subparagraph (D),'' before ``all populated areas'';
(2) in subparagraph (B), by striking ``and'' at the end;
(3) in subparagraph (C), by striking the period at the end
and inserting the following: ``, including by facilitating,
partnering with other Federal, State, and local agencies with
respect to, and leveraging the efficient acquisition of the
most up-to-date high-resolution topographic data, such as Light
Detection and Ranging (commonly known as `LiDAR') data and
other new and emerging technologies; and''; and
(4) by adding at the end the following:
``(D) establish standards that may be used as the
basis for insurance rating purposes to identify multi-
frequency flood hazards and flood hazard information
that appropriately characterizes the nature of flooding
for areas subject to a mapping update, including by
using the most up-to-date high-resolution topographic
data as required under subparagraph (C), in order to
reduce flood risk and improve the accuracy of National
Flood Insurance Program rate maps.''.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Administrator shall submit to Congress a report on
compliance by the Administrator with the requirement under
subparagraphs (C) and (D) of section 100216(b)(1) of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)), as amended
by subsection (a), to use the most up-to-date high-resolution
topographic data and multi-frequency flood hazards in order to reduce
flood risk and improve the accuracy of National Flood Insurance Program
rate maps.
SEC. 504. PROTECTED AREAS.
Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act
of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the
following:
``(4) Zones protected by levee systems.--
``(A) Applicability.--Subject to full
implementation of this section, and notwithstanding any
other provision of law, this paragraph shall apply to a
community in which the Administrator maps or re-maps a
levee-impacted area in which the pertinent levee system
fails to meet the minimum design, operation, and
maintenance standards of the National Flood Insurance
Program required for levee accreditation on a National
Flood Insurance Program rate map.
``(B) AL zones.--For levee-impacted areas described
in subparagraph (A), the Administrator shall establish
flood risk zones known as `AL Zones' on the National
Flood Insurance Program rate map.
``(C) Actuarial rates.--
``(i) In general.--The Administrator shall
make available flood insurance to properties in
AL Zones at actuarial rates based upon the risk
associated with structures within the
applicable AL zone.
``(ii) Temporary rates.--Until the
Administrator promulgates actuarial rates for
the various AL zones, a structure within a
portion of a community located within a levee-
impacted area described in subparagraph (A)
shall be eligible for rates associated with
areas of moderate flood hazards (also known as
`Standard X zone' rates).''.
SEC. 505. COASTAL FLOOD MODELS.
Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act
of 2012 (42 U.S.C. 4101b(b)), as amended by section 504, is amended by
adding at the end the following:
``(5) Coastal flood models.--In updating maps under this
section, the Administrator shall use coastal flood models that
ensure technically and scientifically accurate modeling to
represent and communicate flood risk.''.
TITLE VI--ENHANCING NATIONAL FLOOD INSURANCE PROGRAM TRANSPARENCY AND
ACCOUNTABILITY
SEC. 601. DEADLINE FOR APPROVAL OF CLAIMS.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019), as amended by section 205, is amended by
adding at the end the following:
``(e) Deadline for Approval of Claims.--
``(1) In general.--Not later than 30 days after the
submission of a proof of loss, the Administrator shall notify
the insured regarding the approval or disapproval of the claim.
``(2) Extension of claim determination deadline.--The
Administrator may extend the deadline under paragraph (1) by a
single additional 15-day period under extraordinary
circumstances, as determined according to criteria adopted by
the Administrator.
``(3) Payment of claims.--The Administrator shall make
payment for an approved claim as soon as possible after
approval of the claim.
``(f) Notification and Proofs of Loss.--
``(1) In general.--A flood insurance claim filed under this
title for damage to or loss of property may not be denied based
on the proof of loss requirements of the standard flood
insurance policy under the national flood insurance program if
the policyholder--
``(A) provides notice of the claim not later than
60 days after the date of the occurrence of the loss;
and
``(B) complies with the remaining proof of loss
requirements under the standard flood insurance policy
not later than--
``(i) 180 days after the date of the
occurrence of the loss; or
``(ii) any later date specified by the
Administrator.
``(2) Supplemental proof of loss.--A policyholder may amend
or supplement a proof of loss not later than 180 days after the
date on which the policyholder submits the initial proof of
loss.''.
(b) Applicability.--The amendment made by subsection (a) shall
apply to any claim for damage to or loss of property covered by flood
insurance made available under the National Flood Insurance Act of 1968
(42 U.S.C. 4001 et seq.) that is pending on, or made after, the date of
enactment of this Act.
SEC. 602. FLOOD INSURANCE TRANSPARENCY, ACCOUNTABILITY, AND REFORM.
(a) Reports and Other Claim-Related Documents.--Section 1312 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by
section 601, is amended by adding at the end the following:
``(f) Final Engineering Reports.--The Administrator shall require
that, in the case of any on-site inspection of a property by an
engineer for the purpose of assessing any claim for losses covered by a
policy for flood insurance coverage provided under this title (referred
to in this subsection as a `covered claim'), the final engineering
report shall be provided to the insured under the policy, as follows:
``(1) Timing.--The final engineering report may not be
transmitted to any other person, employer, agency, or entity,
before it is transmitted to the insured.
``(2) Prohibition on alterations; certification.--The final
engineering report--
``(A) shall be true, complete, and unredacted;
``(B) may not include alterations by, or at the
request of, anyone other than the individual with
responsible charge for the report; and
``(C) shall include a certification, signed by the
individual with responsible charge for the report, that
the report does not contain any alterations described
in subparagraph (B).
``(3) Transmittal.--
``(A) In general.--The final engineering report
shall be transmitted to the insured in a manner
prescribed by the Administrator that provides
reasonable assurance that it was transmitted directly
to the insured by the individual with responsible
charge.
``(B) Direct disclosure.--A Write Your Own company
or direct servicing agent in possession of a final
engineering report subject to disclosure under this
subsection may transmit the report to the insured
without further review or approval by the
Administrator.
``(4) Reports covered.--For purposes of this subsection,
the term `final engineering report' means an engineering
report, survey, or other document in connection with the
covered claim that--
``(A) is based on the on-site inspection;
``(B) contains final conclusions with respect to an
engineering issue or issues involved in the claim; and
``(C) is signed by the individual with responsible
charge or affixed with the seal of the individual with
responsible charge, or both.
``(g) Claims Adjustment Reports.--The Administrator shall require
that, in the case of any on-site inspection of a property by a claims
adjustor for the purpose of assessing any claim for losses covered by a
policy for flood insurance coverage provided under this title (referred
to in this subsection as a `covered claim'), any claims adjustment
claims adjustment report shall be provided to the insured under the
policy, as follows:
``(1) Timing.--The claims adjustment report may not be
transmitted to any other person, employer, agency, or entity,
before it is transmitted to the insured.
``(2) Prohibition on alterations; certification.--The
claims adjustment report--
``(A) shall be true, complete, and unredacted;
``(B) may not include alterations by, or at the
request of, anyone other than the preparer of the
report; and
``(C) shall include a certification, signed by the
preparer, that the report does not contain any
alterations described in subparagraph (B).
``(3) Transmittal.--
``(A) In general.--The claims adjustment report
shall be transmitted to the insured in a manner
prescribed by the Administrator that provides
reasonable assurance that it was transmitted directly
to the insured by the preparer.
``(B) Direct disclosure.--A Write Your Own company
or direct servicing agent in possession of a claims
adjustment report subject to disclosure under this
subsection may transmit the report to the insured
without further review or approval by the
Administrator.
``(4) Reports covered.--For purposes of this subsection,
the term `claims adjustment report'--
``(A) means any report or document in connection
with the covered claim that is based on the on-site
inspection by the claims adjustor, including any
adjustment report and field report;
``(B) includes any draft, preliminary version, or
copy of a report described in subparagraph (A) and any
amendments or additions to any such report; and
``(C) does not include a final engineering report,
as that term is defined for purposes of subsection (e).
``(h) Other Claim-Related Documents.--
``(1) Definition of claim-related document.--In this
subsection, the term `claim-related document' means any
document, other than a final engineering report (as defined in
subsection (e)) or a claims adjustment report (as defined in
subsection (f)), that was prepared for the purposes of
assessing a claim for losses covered by flood insurance made
available under this title, including--
``(A) a repair and replacement estimate or bid;
``(B) an appraisal;
``(C) a scope of loss;
``(D) a drawing;
``(E) a plan;
``(F) a report, including a draft report prepared
based on an on-site inspection of a property conducted
by a claims adjustor or engineer;
``(G) a third-party finding on the amount of loss,
amount of covered damage, or cost of repairs; and
``(H) any other valuation, measurement, or loss
adjustment calculation of the amount of loss, amount of
covered damage, or cost of repairs.
``(2) Availability of documents.--Any entity servicing a
claim under the national flood insurance program--
``(A) shall retain each claim-related document
prepared by or for the entity;
``(B) upon request by a claimant or an authorized
representative of a claimant, shall provide to the
claimant or representative a copy of any claim-related
document described in subparagraph (A) that pertains to
the claimant; and
``(C) not later than 30 days after receiving notice
of a claim, shall notify the claimant that the claimant
or an authorized representative of the claimant may
obtain, upon request, a copy of any claim-related
document described in subparagraph (A) that pertains to
the claimant.
``(i) Use of Claim Reports.--
``(1) In general.--When adjusting claims for any damage to
or loss of property covered by flood insurance made available
under this title, the Administrator shall only rely upon final
claim reports that are prepared in compliance with applicable
State and Federal laws regarding professional licensure and
conduct.
``(2) Non-reimbursement.--The Administrator may decline to
reimburse a Write Your Own company for claim reports not
prepared in accordance with paragraph (1).''.
(b) Judicial Review.--
(1) Government program with industry assistance.--Section
1341 of the National Flood Insurance Act of 1968 (42 U.S.C.
4072) is amended to read as follows:
``SEC. 1341. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.
``(a) Adjustment and Payment of Claims.--If the program is carried
out as provided in section 1340, the Administrator may adjust and make
payment of any claims for proved and approved losses covered by flood
insurance.
``(b) Judicial Review.--Upon the disallowance or partial
disallowance by the Administrator of a claim described in subsection
(a), or upon the refusal of the claimant to accept the amount allowed
upon a claim described in subsection (a)--
``(1) the claimant may institute an action against the
Administrator on the claim in the United States district court
for the district in which the insured property or the major
part thereof shall have been situated--
``(A) not later than 2 years after the date on
which the claimant receives notice of disallowance or
partial disallowance of the claim; or
``(B) in the case of a denial of a claim for losses
that is appealed to the Administrator, not later than
the later of--
``(i) 90 days after the date of a final
determination upon appeal denying the claim in
whole or in part; or
``(ii) 2 years after the date on which the
claimant receives notice of disallowance or
partial disallowance of the claim; and
``(2) a court described in paragraph (1) shall have
original exclusive jurisdiction to hear and determine the
action without regard to the amount in controversy.
``(c) Private Rights of Action.--Nothing in this section, or in any
regulation or policy implementing the national flood insurance program,
may be construed to preclude a private right of action under any
statute by a policyholder against a private entity for fraud arising
from the handing or disposition of a claim for losses under this
title.''.
(2) Industry program with federal financial assistance.--
Section 1333 of the National Flood Insurance Act of 1968 (42
U.S.C. 4053) is amended to read as follows:
``SEC. 1333. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.
``(a) Adjustment and Payment of Claims.--The insurance companies
and other insurers that form, associate, or otherwise join together in
the pool under this part may adjust and pay all claims for proved and
approved losses covered by flood insurance in accordance with the
provisions of this title.
``(b) Judicial Review.--Upon the disallowance or partial
disallowance by any company or other insurer described in subsection
(a) of a claim described in that subsection, or upon the refusal of the
claimant to accept the amount allowed upon a claim described in that
subsection--
``(1) the claimant may institute an action on the claim
against the company or other insurer in the United States
district court for the district in which the insured property
or the major part thereof shall have been situated--
``(A) not later than 2 years after the date on
which the claimant receives notice of disallowance or
partial disallowance of the claim; or
``(B) in the case of a denial of a claim for losses
that is appealed to the Administrator, not later than
the later of--
``(i) 90 days after the date of a final
determination upon appeal denying the claim in
whole or in part; or
``(ii) 2 years after the date on which the
claimant receives notice of disallowance or
partial disallowance of the claim; and
``(2) a court described in paragraph (1) shall have
original exclusive jurisdiction to hear and determine the
action without regard to the amount in controversy.
``(c) Private Rights of Action.--Nothing in this section, or in any
regulation or policy implementing the national flood insurance program,
may be construed to preclude a private right of action under any
statute by a policyholder against a private entity for fraud arising
from the handing or disposition of a claim for losses under this
title.''.
(c) Records and Reviews.--Section 1348 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4084) is amended by adding at the end
the following:
``(c) Annual Review.--The Administrator shall conduct an annual
review of each private entity participating in the national flood
insurance program, including any company that has entered into a
contract with a Write Your Own company to provide any service related
to a policy or claim under the national flood insurance program,
including adjusting, engineering, and legal services, to ensure
compliance with this title and with all policies and procedures
established by the Administrator to prevent fraud and protect
policyholders.''.
(d) Publication of Claims Data.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as amended by subsection (a),
is amended by adding at the end the following:
``(j) Publication of Claims Data.--Not later than 1 year after the
date of enactment of the Flood Insurance Affordability and
Sustainability Act of 2017, the Administrator shall create and maintain
a publicly searchable online database that includes, with respect to
claims filed under the national flood insurance program after that date
of enactment--
``(1) the aggregate number of claims filed each month,
broken down by State;
``(2) the aggregate number of claims paid in part or in
full; and
``(3) the aggregate number of claim denials appealed, the
number of claim denials upheld on appeal, and the number of
claim denials overturned on appeal.
``(k) Privacy.--Nothing in this section or the Flood Insurance
Affordability and Sustainability Act of 2017, or any amendment made by
that Act, shall be construed to authorize the inclusion of personally
identifiable information or individual claim or specific property
information in any publicly searchable database.''.
(e) Oversight of Litigation.--Part C of chapter II of the National
Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by
adding at the end the following:
``SEC. 1349. OVERSIGHT OF LITIGATION.
``(a) In General.--The Administrator shall oversee litigation
arising under a contract for flood insurance sold under this title that
is conducted by a Write Your Own company to ensure that the Write Your
Own company and counsel for the company--
``(1) represent the national flood insurance program
reasonably and in accordance with guidelines established by the
Administrator and applicable ethical requirements; and
``(2) conduct litigation in a cost-effective manner.
``(b) Denial of Reimbursement.--The Administrator may deny
reimbursement for litigation expenses that the Administrator determines
to be unreasonable, excessive, contrary to guidance issued by the
Administrator, or outside the scope of any arrangement entered into
with a Write Your Own company.
``(c) Direction of Strategy.--The Administrator may direct
litigation strategy for claims arising under a contract for flood
insurance sold by a Write Your Own company.
``(d) Substitution.--The Administrator may promptly take any
necessary action to be substituted for the Write Your Own company in
any action arising out of any claim arising under a contract for flood
insurance sold by a Write Your Own company if the Administrator
determines that--
``(1) there is a conflict of interest between a Write Your
Own company and the national flood insurance program; or
``(2) such substitution is in the best interest of the
United States.''.
(f) Earth Movement.--Section 1306 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the
following:
``(e) Earth Movement.--A flood insurance claim filed under this
title for damage to or loss of property may not be denied based on the
earth movement exclusion in the Standard Flood Insurance Policy if the
claim is filed as the result of a flood, including a claim for damage
to or loss or property caused by earth movement that was caused by a
flood.''.
(g) Appeals Process.--Section 205 of the Bunning-Bereuter-
Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is
amended--
(1) by striking ``Not later than'' and inserting ``(a) In
General.--Not later than''; and
(2) by adding at the end the following:
``(b) Review of Appeals.--
``(1) Clarity.--The Director shall ensure that the appeals
process established under subsection (a) has clear rules,
forms, and deadlines.
``(2) Notification upon initial denial of claim.--The
Director shall ensure that a claimant is provided with the
rules, forms, and deadlines described in paragraph (1) at the
time a claim is first denied in full or in part, including--
``(A) the effective date of the denial;
``(B) a justification for the denial, including
supporting documentation;
``(C) the date on which the period of limitation
for instituting an action against the Administrator on
the claim under section 1341 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4072) will end; and
``(D) a point of contact through which the claimant
can directly discuss an appeal with a representative of
the Federal Emergency Management Agency.
``(3) Notification upon denial of appeal.--If the
Administrator denies an appeal filed by a policyholder, the
Administrator shall include with the notice of denial an
explanation of the policyholder's legal options for further
challenging the denial.''.
SEC. 603. REPORTS TO CONGRESS.
(a) Definition.--In this section, the term ``Task Force'' means the
National Flood Insurance Program Transformation Task Force established
by the Federal Emergency Management Agency.
(b) Report to Congress on Accountability for Defrauding
Policyholders.--Not later than 90 days after the date of enactment of
this Act, the Secretary of Homeland Security shall submit to Congress a
report on specific actions the Department of Homeland Security will
take to identify individuals and private entities that have engaged in
activities to defraud policyholders under the National Flood Insurance
Program following Superstorm Sandy and prevent those individuals and
private entities from continuing to receive Federal funding through--
(1) contracts with, or employment by, a Write Your Own
company; or
(2) employment by the Federal Emergency Management Agency.
(c) Report to Congress on Recommendations of the NFIP
Transformation Task Force.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to Congress a
report that describes--
(1) the recommendations of the Task Force for reforming the
National Flood Insurance Program;
(2) a timeline for implementing the recommendations of the
Task Force; and
(3) any recommendations of the Task Force that require
additional legislation.
<all>