(d) For purposes of section 10 of the Disaster Relief Act of 1966 (80 Stat. 1320), the term "financial assistance" shall be deemed to include any flood insurance which is made available under this title. STATE AND LOCAL LAND USE CONTROLS SEC. 1315. After December 31, 1971, no new flood insurance coverage shall be provided under this title in any area (or subdivision thereof) unless an appropriate public body shall have adopted adequate land use and control measures (with effective enforcement provisions) which the Director finds are consistent with the comprehensive criteria for land management and use under section 1361. PROPERTIES IN VIOLATION OF STATE AND LOCAL LAW SEC. 1316. No new flood insurance coverage shall be provided under this title for any property which the Director finds has been declared by a duly constituted State or local zoning authority, or other authorized public body, to be in violation of State or local laws, regulations or ordinances which are intended to discourage or otherwise restrict land development or occupancy in flood-prone areas. COORDINATION WITH OTHER PROGRAMS SEC. 1317. In carrying out this title, the Director shall consult with other departments and agencies of the Federal Government, and with interstate, State, and local agencies having responsibilities for flood control, flood forecasting, or flood damage prevention, in order to assure that the programs of such agencies and the flood insurance program authorized under this title are mutually consistent. ADVISORY COMMITTEE SEC. 1318. (a) The Director shall appoint a flood insurance advisory committee without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and such committee shall advise the Director in the preparation of any regulations prescribed in accordance with this title and with respect to policy matters arising in the administration of this title, and shall perform such other responsibilities as the Director may, from time to time, assign to such committee. (b) Such committee shall consist of not more than fifteen persons and such persons shall be selected from among representatives of(1) the insurance industry, (2) State and local governments, (4) the homebuilding industry, and (5) the general public. (c) Members of the committee shall, while attending conferences or meetings thereof, be entitled to receive compensation at a rate fixed by the Director but not exceeding $100 per day, including traveltime, and while so serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as is authorized under section 5703 of title 5, United States Code, for persons in the Government service employed intermittently. PROGRAM EXPIRATION SEC. 1319. No new contract for flood insurance under this title shall be entered into after September 30, 1985. REPORT TO THE PRESIDENT SEC. 1320. The Director shall include a report of operations under this title in the annual report to the President for submission to the Congress required by section 8 of the Department of Housing and Urban Development Act. UNDEVELOPED COASTAL BARRIERS SEC. 1321. No new flood insurance coverage may be provided under this title on or after October 1, 1983, for any new construction or substantial improvements of structures located on any coastal barrier within the Coastal Barrier Resources System established by section 4 of the Coastal Barrier Resources Act. A federally insured financial institution may make loans secured by structures which are not eligible for flood insurance by reason of this section. CHAPTER II-ORGANIZATION AND ADMINISTRATION OF THE FLOOD INSURANCE PROGRAM ORGANIZATION AND ADMINISTRATION SEC. 1330. Following such consultation with representatives of the insurance industry as may be necessary, the Director shall implement the flood insurance program authorized under chapter I in accordance with the provision of part A of this chapter and, if a determination is made by him under section 1340, under part B of this chapter. PART A-INDUSTRY PROGRAM WITH FEDERAL FINANCIAL ASSISTANCE INDUSTRY FLOOD INSURANCE POOL SEC. 1331. (a) The Director is authorized to encourage and otherwise assist any insurance companies and other insurers which meet the requirements prescribed under subsection (b) to form, as associate, or otherwise join together in a pool (1) in order to provide the floor insurance coverage authorized under chapter I; and (2) for the purpose of assuming, on such terms and conditions as may be agreed upon, such financial responsibility as will enable such companies and other insurers, with the Federal financial and other assistance available under this title, to assure a reasonable proportion of responsibility for the adjustment and payment of claims for losses under the flood insurance program. (b) In order to promote the effective administration of the flood insurance program under this part, and to assure that the objectives of this title are furthered, the Director is authorized to prescribe appropriate requirements for insurance companies and other insurers participating in such pool including, but not limited to, minimum requirements for capital or surplus or assets. AGREEMENTS WITH FLOOD INSURANCE POOL SEC. 1332. (a) The Director is authorized to enter into such agreements with the pool formed or otherwise created under this part as he deems necessary to carry out the purposes of this title. (b) Such agreements shall specify (1) the terms and conditions under which risk capital will be available for the adjustment and payments of claims, (2) the terms and conditions under which the pool (and the companies and other insurers participating therein) shall participate in premiums received and profits or losses realized or sustained, (3) the maximum amount of profit, established by the Director and set forth in the schedules prescribed under section 1311, which may be realized by such pool (and the companies and other insurers participating therein), (4) the terms and conditions under which operating costs and allowances set forth in the schedules prescribed under section 1311 may be paid, and (5) the terms and conditions under which premium equalization payments under section 1334 will be made and reinsurance claims under section 1335 will be paid. (c) In addition, such agreements shall contain such provisions as the Director finds necessary to assure that (1) no insurance company or other insurer which meets the requirements prescribed under section 1331(b), and which has indicated an intention to participate in the flood insurance program on a risk-sharing basis, will 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 insurers, insurance agents and brokers and insurance adjustment organizations will be permitted to cooperated with the pool as fiscal agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW SEC. 1333. 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 insurance in accordance with the provisions of this title and, upon the disallowance by any such company or other insurer 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 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 original exclusive jurisdiction is hereby conferred upon such court to hear and determine such action without regard to the amount in controversy. PREMIUM EQUALIZATION PAYMENTS SEC. 1334. (a) The Director, on such terms and conditions as he may from time to time prescribe, shall make periodic payments to the pool formed or otherwise created under section 1331, in recognition of such reductions in chargeable premium rates under section 1308 below estimated premium rates under section 1307(a)(1) as are required in order to make flood insurance available on reasonable 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 Director. REINSURANCE COVERAGE SEC. 1335. (a) The Director is authorized to take such action as may be necessary in order to make available, to the pool formed or otherwise created under section 1331, 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). (b) Such reinsurance shall be made available pursuant to contract, agreement, or any other arrangement, in consideration of such payment of a premium, fee, or other charge as the Director finds necessary to cover anticipated losses and other costs of providing such reinsurance. (c) The Director is authoried 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 title, consistent with the objective of maintaining appropriate financial participation and risk sharing to the maximum extent practicable on the part of participating insurance companies and other insurers. (d) All reinsurance claims for losses in excess of losses assumed by the pool shall be submitted on a portfolio basis by such pool in accordance with terms and conditions established by the Director. EMERGENCY IMPLEMENTATION OF PROGRAM SEC. 1336. (a) Notwithstanding any other provisions of this title, for the purpose of providing flood insurance coverage at the earliest possible time, the Director shall carry out the flood insurance program authorized under chapter I during the period ending September 30, 1985, in accordance with the provisions of this part and the other provision of this title insofar as they relate to this part but subject to the modifications made by or under subsection (b). (b) In carrying out the flood insurance program pursuant to subsection (a), the Director (1) shall provide insurance coverage without regard to any estimated risk premium rates which would otherwise be determined under section 1307; and (2) shall utilize the provisions and procedures contained in or prescribed by this part (other than section 1334) and sections 1345 and 1346 to such extent and in such manner as he may consider necessary or appropriate to carry out the purpose of this section. PART B-GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE FEDERAL OPERATION OF THE PROGRAM SEC. 1340. (a) If at any time, after consultation with representatives of the insurance industry, the Director 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 assisted materially by the Federal Goverment's assumption, in whole or in part, of the operational responsibility for flood insurance under this title (on a temporary or other basis) he shall promptly undertake any necessary arrangements to carry out the program of flood insurance authorized under chapter I through the facilities 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 adjustment organizations, as fiscal agents of the United States, (2) such other officers and employees of any executive agency (as defined in section 105 of title 5 of the United States Code) as the Director and the head of any such agency may from time to time, agree upon, on a reimbursement or other basis, or (3) both the alternative specified in paragraphs (1) and (2). (b) Upon making the determination referred to in subsection (a), and at least thirty days prior to implementing the program of flood insurance authorized under chapter I through the facilities of the Federal Government, the Director 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 providing flood insurance coverage under the program, and (4) contain such recommendations as the Director deems advisable. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW SEC. 1341. In the event the program is carried out as provided in section 1340, the Director 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 Director of any such claims, or upon the refusal of the claimant to accept the |