834 



Secretary and the head of any such agency may 

 from time to time, agree upon, on a reimburse- 

 ment or other basis, or 



(3) both the alternatives specified in para- 

 graphs (1) and (2). 



(b) Upon making the determination referred to 

 In subsection (a) of this section, and at least thirty 

 days prior to implementing the program of flood 

 Insurance authorized under subchapter I of this 

 chapter through the facilities of the Federal Gov- 

 ernment, the Secretary shall make a report to the 

 Congress and such report shall — 



(1) state the reasons for such determination, 



(2) be supported by pertinent findings, 



(3) Indicate the extent to which it is anticipated 

 that the insurance industry will be utilized in 

 provding flood insurance coverage under the pro- 

 gram, and 



(4) contain such recommendations as the Sec- 

 retary deems advisable. 



(Pub. L. 90-448, title XIII, § 1340. Aug. 1, 1963, 82 

 Stat. 584.) 



§4072. Adjustment and payment of claims; judicial 

 review; limitations; jurisdiction. 



In the event the program is carried out as pro- 

 vided in section 4071 of this title, the Secretary shall 

 be authorized to adjust and make payment of any 

 ' claims for proVed and approved losses covered by 

 flood insurance, and upon the disallowance by the 

 Secretary of any such claim, or upon the refusal of 

 the claimant to accept the amount allowed upon any 

 such claim, the claimant, within one year after the 

 date of mailing of notice of disallowance or partial 

 disallowance by the Secretary, may institute an ac- 

 tion against the Secretary on such claim In the 

 United States district court for the district in which 

 the Insured property or the major part thereof shall 

 have been situated, and jurisdiction is hereby con- 

 ferred upon such court to hear and determine such 

 action without regard to the amount in controversy. 

 (Pub. L. 90-448. title Xin, § 1341, Aug. 1, 1968, 82 

 Stat. 584.) 



Part C. — General Provisions 



§4081. Services by insurance industry; contracts, 

 Agreements, or other arrangements. 



(a) In administering the flood insurance program 

 under this subchapter, the Secretary is authorized to 

 enter Into any contracts, agreements, or other ap- 

 propriate arrangements which may, from time to 

 time, be necessary for the purpose of utilizing, on 

 such terms and conditions as may be agreed upon, 

 the facilities and services of any insurance com- 

 panies or other insurers, insurance agents and brok- 

 ers, or Insurance adjustment organizations; and 

 such contracts, agreements, or arrangements may 

 Include provision for payment of applicable operat- 

 ing costs and allowances for such facilities and serv- 

 ices as set forth in the schedules prescribed under 

 section 4018 of this title. 



(b) Any such contracts, agreements, or other ar- 

 rangements may be entered Into without regard to 



the provisions of section 5 of Title 41 or any other 

 provision of law requiring competitive bidding. (Pub. 

 L. 90-448, title XUI, § 1345-, Aug. 1, 1968, 82 Stat. 

 585.) 



§ 4082. Use of insurance pool, companies, or other 

 private organizations for certain payments. 



(a) Authorization to enter into contracts for certain 

 responsibilities. 

 In order to provide for maximum efficiency In the 

 administration of the flood insurance program and 

 in order to facilitate the expeditious payment of any 

 Federal funds under such program, the Secretary 

 may enter into contracts with pool formed or other- 

 wise created under section 4051 of this title, or any 

 insurance company or other private organization, for 

 the purpose of securing perfonnance by such pool, 

 company, or organization of any or all of the follow- 

 ing responsibilities: 



(1) estimating and later determirung any 

 amounts of payments to be made; 



(2) receiving from the Secretary, disbursing, 

 and accounting for funds in making such pay- 

 ments ; 



(3) making such audits of the records of any In- 

 surance company or other insurer. Insurance agent 

 or broker, or insurance adjustment organization 

 as may be necessary to assure that proper pay- 

 ments are made; and 



(4) otherwise assisting in such manner as the 

 contract may provide to further the purposes of 

 this chapter. 



(b) Terms and conditions of contract. 



Any contract with the pool or an insurance com- 

 pany or other private organization under this section 

 may contain such terms and conditions as the Sec- 

 retary finds necessary or appropriate for carrying 

 out responsibilities under subsection (a) of this sec- 

 tion, and may provide for pyayment of any costs 

 which the Secretary determines are incidental to 

 carrying out such responsibilities which are covered 

 by the contract. 



(c) Competitive bidding. 



Any contract entered into imder subsection (a) 

 of this section may be entered into without regard 

 to section 5 of Title 41 or any other provision of law 

 requiring comp)etitive bidding. 



(d) Findings of Secretary. 



No contract may be entered into under this section 

 unless the Secretary finds that the pool, company, 

 or organization will perform its obligations under the 

 contract efficiently and effectively, and will meet 

 such requirements as to financial responsibility, legal 

 authority, and other matters as he finds pertinent. 



(e) Bond; liability of certifying officers and disbursing 

 officers. 



(1) Any such contract may require the pool, com- 

 pany, or organization or any of its officers or em- 

 ployees certifying payments or disbursing funds prn- 

 suant to the contract, or otherwise participating in 

 carrying out the contract, to give surety bond to the 

 United States in such amount as the Secretary may 



