833 



§4054. Premium equalization payments; basis; aggre- 

 gate amount; establishment of desi5!;nated periods, 



(a) The Secretary, on such terms and conditions 

 as he may from time to time prescribe, shall make 

 periodic payments to the pool formed or other^.'ise 

 created under section 4051 of this title, in recogra- 

 tion of such reductions in chargeable premium rates 

 under section 4015 of this title below estimated pre- 

 mium rates under section 4014<a) (1) of this title as 

 are required in order to make flood insurance avail- 

 able on resisonable terms and conditions, 

 (b) Designated periods under this section and the 

 methods for determining the sum of premiums paid 

 or payable during such periods shall be established 

 by the Secretary, (As amended^Pub. L. 93-234, title 

 I, § 111, Dec. 31, 1973, 87 Stat. 981.) 

 Amendments 

 1973 — subsec. (b). Pub. L 93-234 redesignated former 

 subsec (c) as (b), and struck out former subsec. (b) 

 prescribing formula for sharing losses between Govern- 

 ment and Industry and permit necessary flexibility In loss 

 sharing to take Into account longer-term loss experience 

 trends and to compensate for lack of precision In actuarial 

 computations. 



Subsec. (c). Pub. L. 93-234 redesignated former sub- 

 sec. (c) as (b) . 



§ 4055. Reinsurance coverage. 



(a) Availability for excess losses. 



The Secretary is authorized to take such action 

 as may be necessary in order to make available, to 

 the pool formed or otherwise created under section 

 4051 of this title, reinsurance for losses (due to 

 claims for proved and approved losses covered by 

 flood insurance) which are in excess of losses 

 assumed by such pool in accordance with the excess 

 loss agreement entered into under subsection (c) 

 of this section. 



(b) Availability pursuant to contract, agreement, or 

 other arrangement; payment of premium, fee, or 

 other charge. 



Such reinsurance shall be made available pur- 

 suant to contract, agreement, or any other arrange- 

 ment, in consideration of such payment of a pre- 

 mium, fee, or other charge as the Secretary finds 

 necessary to cover anticipated losses and other costs 

 of providing such reinsurance. 



(c) Excess loss agreement ; negotiation. 



The Secretary is authorized to negotiate an excess 

 loss agreement, from time to time, under which the 

 amount of flood insurance retained by the pool, 

 after ceding reinsurance, shall be adequate to 

 further the purposes of this chapter, consistent with 

 the objective of maintaining appropriate financial 

 participation and risk sharing to the maximum ex- 

 tent practicable on the part of participating insur- 

 ance companies and other insurers. 



(d) Submission of excess losses on portfolio basis. 



All reinsurance claims for losses in excess of losses 

 assumed by the pool shall be submitted on a port- 

 folio basis by such pool in accordance with terms 

 and conditions established by the Secretary. (Pub. 

 L. 90-448, title Xin, § 1335, Aug. 1, 1968, 82 Stat. 

 583.) 



§ 4056. Emergency implementation of flood insurance 

 program; applicability of other provisions of law. 



(a) Notwithstanding any other provisions of this 

 chapter, for the purpose of providing flood insurance 

 coverage at the earUest possible time, the Secretary 

 shall carry out the flood insurance program author- 

 ized under subchapter I of this chapter during the 

 period ending September 30, 1977, In accordance 

 with the provisions of this part and the other pro- 

 visions of this chapter insofar as they relate to this 

 part but subject to the modifications made by or 

 under subsection (b) of this section. 



(b) In carrying out the flood insurance program 



pursuant to subsection (a) of this section, the 



Secretary — 



( 1 ) shall provide insurance coverage without re- 

 gard to any estimated risk premium rates which 

 would otherwise be determined imder section 4014 

 of this title; and 



(2) shall utilize the provisions and procedures 

 contained in or prescribed by this part (other than 

 section 4054 of this title) and sections 4081 and 

 4082 of this title to such extent and in such man- 

 ner as he may consider necessary or appropriate 

 to carry out the purpose of this section. 



(As amended Pub. L. 92-213, S 2(a). Dec. 22, 1971, 85 

 Stat. 775; Pub. L. 93-234, title I. § 106, Dec. 31, 1973, 

 87 Stat. 979; Pub. L. 94-173, § 5, Dec. 23, 1975, 89 

 Stat. 1028; Pub. L. 94-375, § 14(b) Aug. 3, 1976. 

 90 Stat. 1075.) 



Amekdments 



1976 — Subsec. (a). Pub. L. 94-375 substituted "Sep- 

 tember 30, 1977" for "December 31. 1976". 



1973 — Subsec. (a). Pub. L. 93-234 substituted "Decem- 

 ber 31. 1975" for "December 31, 1973". 



1971 — Subsec. (a). Pub. L. 92-213 substituted "TSecem- 

 be 31, 1973" for "December 31, 1971". 



Part B. — Government Program With Industry 

 Assistance 



§4071. Federal operation of program; determination 

 by Secretary; fiscal agents; report to the Congress. 



(a) If at any time, after consultation with rep- 

 resentatives of the insurance industry, the Secretary 

 determines that operation of the flood insurance 

 program as provided under part A cannot be carried 

 out, or that such operation, in itself, would be as- 

 sisted materially by the Federal Government's as- 

 sumption, in whole or in part, of the operational 

 responsibility for flood insurance under this chap- 

 ter (on a temporary or other basis) he shall 

 promptly undertake any necessary arrangements to 

 carry out the program of flood insurance authorized 

 under subchapter I of this chapter through the fa- 

 cilities of the Federal Government, utilizing, for 

 purposes of providing flood insurance coverage, 

 either — 



(1) insurance companies and other insurers, 

 insurance agents and brokers, and insurance ad- 

 justment organizations, as fiscal agents of the 

 United States, 



(2) oEBcers and employees of the Department 

 of Housing and Urban Development, and such 

 other officers and employees of any executive 

 agency (as defined in section 105 of Title 5) as the 



