832 



Pub. L. 93-38 increased limitation on face amount of 

 outstanding flood Insurance coverage from $4,000,000,000 

 to $6,000,000,000. 



Pub. L. 93-4 Increased limitation on face amount of 

 outstanding flood insurance coverage from $2,500,000,000 

 to $4,000,000,000. 



§ 4027. Annual report to the President. 



The Secretary shall include a report of operations 

 under this chapter in the annual report to the 

 President for submi.ssion to the Congress required by 

 section 3536 of this title. (Pub. L. 90-448, title Xni, 

 § 1320, Aug. 1, 1961!, 82 Stat. 581.) 



SUBCHAPTER II.— ORGANIZATION AND AD- 

 MINISTRATION OF PUX)D INSURANCE 

 PROGRAM 



§ 4041. Implementation of program. 



Following such consiiltation with representatives 

 of the insurance industry as may be necessary, the 

 Secretary shall implement the flood insurance pro- 

 gram authorized under subchapter I of this chapter 

 In accordance with the provisions of part A of this 

 subchapter and. If a determination Is made by him 

 under section 4071 of this title, under part B of this 

 subchapter. (Pub. L. 90-448. title xm, § 1330, Aug. 1, 

 1968, 82 Stat. 581.) 



Part A. — Industry Program With Federal 

 FssKscud. Assistance 



§4051. Industry flooti insurance pool; requirements for 

 participation. 



(a) "ITie Secretaiy Is authorized to encourage and 

 otherwise assist arv' Insurance companies and other 

 insurers which meet the requirements prescribed 

 under subsection io) of this section to form, asso- 

 ciate, or otherwise join together In a pool — 



(1) In order zo provide the flood insurance 

 coverage authorized under subchapter I of this 

 chapter; and 



(2) for the purpose of assuming, on such terms 

 and conditions as may be agreed upon, such fi- 

 nancial responsibility as will enable such com- 

 panies and other insurers, with the Federal fi- 

 nancial and other assistance available under this 

 chapter, to assume a reasonable proportion of re- 

 sponsibility for the adjustment and payment of 

 claims for losses under the flood insurance pro- 

 gram. 



(b) In order to promote the effective adminis- 

 tration of the flood insurance program under this 

 part, and to assure that the objectives of this chap- 

 ter are furthered, the Secretary Is authorized to pre- 

 scribe appropriate requirements for Insurance com- 

 panies and other insurers participating in such pool 

 Including, but not Umited to, minimum requirements 

 for capital or surplus or assets. (I»ub. L. 90-448, title 

 XnX, I .1331, Aug. 1, 1968, 82 Stat. 582.) 



§4052. Agreements with flood insurance pool; terms 

 and conditions. 



<a) The Secretary Is authorized to enter Into such 

 agreemente with the pool formed or otherwise 

 created under this part as he deems necessary to 



carry out the purposes of this chapter. 



(b) Such agreements shall specify — 



(1) the terms and conditions under which risk 

 capital will be available for the adjustment and 



■ payment of claims, 



(2) the terms and conditions under which the 

 pool (and the companies and other insurers par- 

 ticipating therein) shall participate in premiums 

 received and profits or losses realized or sustained, 



(3) the maximum amount of profit, established 

 by the Secretary and set forth in the schedules 

 prescribed under section 4018 of this title, which 

 may be realized by such pool (and the companies 

 and other insurers participating therein) , 



(4) the terms and conditions under which op- 

 erating costs and allowances set forth in the 

 schedules prescribed under section 4018 of this 

 title may be paid, and 



(5) the terms and conditions under which 

 premium equalization payments under section 

 4054 of this title will be made and reinsurance 

 claims under section 4055 of this title wUl be paid. 



(c) In addition, such agreements shall contain 

 such provisions as the Secretary finds necessary to 

 assure that — 



(1) no Insurance company or other Insurer 

 which meets the requirements prescribed under 

 section 4051(b) of this title, and which has in- 

 dicated an intention to participate in the flood in- 

 surance program on a risk-sharing basis, wOl be 

 excluded from participating in the pool, 



(2) the insurance companies and other insurers 

 participating in the pool will take whatever action 

 may be necessary to provide continuity of flood 

 insurance coverage by the pool, and 



(3) any Insurance companies and other in- 

 surers, insurance agents and brokers, and insur- 

 ance adjustment organizations will be pennitted 

 to cooperate with the pool as fiscal agents or 

 otherwise, on other than a risk-sharing basis, to 

 the maximum extent practicable. 



(Pub. L. 90-448, title XTU, § 1332, Aug. 1, 1968. 82 

 Stat. 582.) 



§4053. Adjustment and payment of claims; judicial 

 review; limitations; jurisdiction. 



The insurance companies and other insurers which 

 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 insur- 

 ?nce in accordance with the provisions of this chap- 

 ter and, upon the disallowance by any such company 

 or other insurer of any such claim, or upon the re- 

 fusal of the claimant to accept the amcunt allowed 

 upon any such claim, the claimant, within one year 

 after the dale of mailing of notice of disallowance or 

 partial disallowance of the claim, may institute an 

 action on such claim against such 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, and jurisdic- 

 tion is hereby conferred upon such court to hear 

 and determine such action without regard to the 

 amount in controversy. (Pub. L. 90-448, title XIII, 

 5 1333, Aug. 1, 1968, 82 Stat. 583.) 



