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in appropriation Acts; except that the fund shall be available for the purpose described in subsection (dX1) without such approval.
OPERATING COSTS AND ALLOWANCES
SEC. 1311. (a) The Director shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of establishing
(1) a current schedule of operating costs applicable both to risk-sharing insurance companies and other insurers and to insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations participating on other than a risk-sharing basis, and
(2) a current schedule of operating allowances applicable to
risk-sharing insurance companies and other insurers, which may be payable in accordance with the provisions of chapter II, and such schedules shall from time to time be prescribed in regulations. (b) For purposes of subsection (a)—
(1) the term "operating costs" shall (without limiting such term) include
(A) expense reimbursements covering the direct, actual and necessary expenses incurred in connection with selling and servicing flood insurance coverage;
(B) reasonable compensation payable for selling and servicing flood insurance coverage, or commissions or service fees paid to producers;
(C) loss adjustment expenses; and
(D) other direct, actual, and necessary expenses which the Director finds are incurred in connection with selling
or servicing flood insurance coverage; and (2) the term "operating allowances" shall (without limiting such term) include amounts for profit and contingencies which the Director finds reasonable and necessary to carry out the purposes of this title.
PAYMENT OF CLAIMS Sec. 1312. The Director is authorized to prescribe regulations establishing the general method or methods by which proved and approved claims for losses may be adjusted and paid for any damage to or loss of property which is covered by flood insurance made available under the provisions of this title.
DISSEMINATION OF FLOOD INSURANCE INFORMATION
SEC. 1313. The Director shall from time to time take such action as may be necessary in order to make information and data available to the public, and to any State or local agency or official, with regard to
(1) the flood insurance program, its coverage and objectives, and
(2) estimated and chargeable flood insurance premium rates, including the basis for and differences between such rates in accordance with the provisions of section 1308.
PROHIBITION AGAINST CERTAIN DUPLICATIONS OF BENEFITS REPEALED
Sec. 1314. (a) Notwithstanding the provisions of any other law, no Federal disaster assistance shall be made available to any person
(1) for the physical loss, destruction, or damage of real or personal property, to the extent that such loss, destruction, or damage is covered by a valid claim which may be adjusted and paid under flood insurance made available under the authority of this title, or
(2) except in the situation provided for under subsection (b), for the physical loss, destruction, or damage of real or personal property, to the extent that such loss, destruction, or damage could have been covered by a valid claim under flood insurance
a which had been made available under the authority of this title, if
(A) such loss, destruction, or damage occurred subsequent to one year following the date flood insurance was made available in the area (or subdivision thereof) in which such property or the major part thereof was located, and
(B) such property was eligible for flood insurance under
this title at that date; and in such circumstances the extent that such loss, destruction, or damage could have been covered shall be presumed (for purposes of this subsection) to be an amount not less that the maximum limit of insurable loss or damage applicable to such property in such area (or subdivision thereof), pursuant to regulations under section 1306, at the time insurance was made
available in such area (or subdivision thereof). (b) In order to assure that the provisions of subsection (a)(2) will not create undue hardship for low-income persons who might otherwise benefit from the provision of Federal disaster assistance, the Director shall provide by regulation for the circumstances in which the provisions of subsection (a)(2) shall not be applicable to any such persons.
(c) For the purposes of this section, "Federal disaster assistance" shall include any Federal financial assistance which may be made available to any person as a result of
(1) a major disaster (within the meaning of that term as determined by the President pursuant to the Act entitled "An Act to authorize Federal assistance to State and local governments in major disasters, and for other purposes”, as amended (42 U.S.C. 1855-1855g)),
(2) a natural disaster, as determined by the Secretary of Agriculture pursuant to section 321 of the Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1961), or
(3) a disaster with respect to which loans may be made under section 7(b) of the Small Business Act (15 U.S.C. 636(b)).
(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.
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,
(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.
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 reinsur
ance 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 pro gram 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