Flood Insurance Reform and Modernization Act of 2007

An original bill to amend the National Flood Insurance Act of 1968, to restore the financial solvency of the flood insurance fund, and for other purposes.

11/1/2007--Reported to Senate without amendment. (This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.) Flood Insurance Reform and Modernization Act of 2007 -
(Sec. 4) Amends the National Flood Insuran more...ce Act of 1968 (Act) to extend the national flood insurance program (Program) though FY2013.
(Sec. 5) Requires the Director of the Federal Emergency Management Agency (FEMA) to make national flood insurance available for multifamily properties of more than four units.
(Sec. 6) Requires the FEMA Director to estimate the exclusion of certain prospective insureds from purchasing flood insurance at risk premium rates less than those estimated for specified properties (including any property not an individual's primary residence, severe repetitive loss property, and any business property). Sets an annual risk premium rate limitation of 25% for such properties. Prohibits the Director from providing flood insurance to prospective insureds at risk premium rates less than those otherwise estimated for new or lapsed policies. Increases from 10% to 15% the annual limitation on risk premium rate increases for any properties within any single risk classification.
(Sec. 7) Instructs FEMA to issue final regulations establishing revised definitions of special flood hazard areas, including residual risk areas. Subjects such areas to mandatory flood insurance purchase requirements.
(Sec. 8) Requires adjustment of flood insurance risk premium rates to reflect the current risk of flood to property located in an area participating in the Program.
(Sec. 9) Adds a new requirement for those states and areas where flood insurance must be made available. Requires such states or areas to give satisfactory assurance that by December 31, 2008, state-chartered lending institutions not insured by the Federal Deposit Insurance Corporation shall be subject to state regulations consistent with the Flood Disaster Protection Act of 1973.
(Sec. 10) Amends the Flood Disaster Protection Act of 1973 to increase from $350 to $2000 the civil monetary penalty for a single violation of the Act. Repeals the limitation upon the maximum penalty amount that may be imposed against any single regulated lending institution or enterprise in any calendar year.
(Sec. 11) Revises the requirement that federal entities responsible for lending regulation require by regulation the payment of flood insurance premiums to a mortgage lender for deposit in an escrow account. Changes the property reference from real estate or mobile home to any property for which a loan has been made for purposes of acquisition or construction. Extends the same requirement to state entities responsible for lending regulations with respect to lending institutions they supervise. Requires any regulated lending institution, upon final payment of a mortgage, to notify the policyholder:
(1) that insurance coverage may cease with such final payment; and
(2) how flood insurance coverage may be continued after the life of the loan.
(Sec. 12) Declares that the Secretary of the Treasury relinquishes the right to any repayment of loans to FEMA, subject to specified conditions, to the extent such borrowed sums were used to fund the payment of flood insurance claims resulting from the hurricanes of 2005. Increases from $1.5 billion to $20.775 billion, during FY2008 only, the maximum amount of loans and obligations the FEMA Director may issue to the Secretary of the Treasury with the President's approval for the Program.
(Sec. 13) Prescribes minimum deductibles for claims under the Program for specified properties. Specifies the minimum annual deductible for pre-FIRM properties (containing a structure neither constructed nor substantially improved after the later of December 31, 1974, or the effective date of the initial rate map published by the FEMA Director under the National Flood Insurance Act of 1968 for the pertinent area) as:
(1) $1,500, if the flood insurance covers structural damage of $100,000 or less; and
(2) $2,000, if the flood insurance covers structural damage greater than $100,000. Sets the minimum annual deductible for post-FIRM properties at $750 in the first instance, and $1,000 in the second.
(Sec. 14) Revises requirements for the FEMA Director's prescription of chargeable flood insurance premium rates. Repeals the requirement that the Director consult with certain entities before prescribing rates. Requires such rates, in addition to meeting other conditions, to be adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.
(Sec. 15) Instructs the Director to establish in the Treasury a National Flood Insurance Reserve Fund, which shall maintain 1% of the sum of the total potential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year, or any higher percentage the Director determines appropriate.
(Sec. 16) Requires any funds borrowed by FEMA for the Program to include a repayment schedule, which shall be transmitted not only to the Secretary but to specified congressional committees.
(Sec. 17) Prohibits FEMA from denying payment of certain flood insurance claims by condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association, based on the flood insurance coverage of the association or others on the association's overall property.
(Sec. 18) Establishes the Technical Mapping Advisory Council to recommend mapping standards and guidelines for flood insurance rate maps.
(Sec. 19) Requires the FEMA Director, in coordination with the Technical Mapping Advisory Council, to establish an ongoing program for review, update, and maintenance of Program rate maps. Authorizes appropriations for FY2008-FY2013.
(Sec. 20) Removes the limitation placed upon state or local government contributions for the cost of updating flood maps.
(Sec. 21) Directs the Secretary of Homeland Security, the FEMA Director, the Director of the Office of Management and Budget (OMB), and the heads of specified federal agencies to:
(1) coordinate and share data on flood risk determination and geospatial data; and
(2) report to Congress an interagency budget crosscut report that displays the budget proposed for agencies working on flood risk determination data and digital elevation models, including planned agency transfers.
(Sec. 22) Directs the National Academy of Public Administration to study and report to Congress on how FEMA can:
(1) improve interagency coordination on flood mapping, including a funding strategy to leverage and coordinate budgets and expenditures; and
(2) establish joint funding mechanisms with other governmental agencies.
(Sec. 23) Exempts from certain floor insurance purchase requirements any area located within the 500-year flood plain.
(Sec. 24) Amends the Real Estate Settlement Procedures Act of 1974 (RESPA) to require that certain public information booklets include the availability of federal flood insurance.
(Sec. 25) States that a temporary residential structure built for the purpose of testing certain new flood proofing technology in any state or community receiving flood mitigation assistance may not be construed to violate any flood risk mitigation plan developed by that state or community and approved by FEMA.
(Sec. 26) Requires the FEMA Director, upon state insurance commissioner request, to cause Program representatives to participate in state disaster claims mediation programs.
(Sec. 27) Directs FEMA to:
(1) continue to work to implement minimum training and education standards for insurance agents who sell flood insurance policies; and
(2) report to Congress on implementation of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004.
(Sec. 28) Directs the FEMA Director to collect additional information regarding certain claims payments by private sector companies authorized to participate in the Write Your Own program (WYO).
(Sec. 29) Authorizes such companies to make specified biennial expense reports to Congress. Requires the FEMA Director to conduct rulemaking proceedings to:
(1) devise a data collection methodology to allow FEMA to collect information on the expenses of property and casualty insurance companies participating in the WYO program for selling, writing, and servicing, standard flood insurance policies; and
(2) formulate revised reimbursements to property and casualty insurance companies participating in the WYO program for their related expenses. Directs the Comptroller General to study and report to specified congressional committees on the efficacy, adequacy, and sufficiency of such rules.
(Sec. 30) Extends the pilot program for mitigation of severe repetitive loss properties through FY2013. Directs FEMA to report to Congress on the implementation status of the program.
(Sec. 31) Establishes in FEMA the Office of the Flood Insurance Advocate to assist insureds in resolving problems with FEMA. Requires such Office to report annually to Congress directly, without any prior review or comment from FEMA, Department of Homeland Security, or OMB. Provides for appointment of regional flood insurance advocates, as well as temporary state or local offices following a flood event. Authorizes the National Flood Insurance Advocate, upon application by a qualified insured, to issue a Flood Insurance Assistance Recommendation to take or refrain from taking specified action, if the qualified insured is suffering a significant hardship, such as a significant delay in resolving claims while incurring significant resulting costs, or where the insured is at risk of adverse action, including the loss of property, as a result of the manner in which the flood insurance laws are being administered by the FEMA Director. Specifies required responses by the FEMA Director to such a Recommendation.
(Sec. 32) Requires the Comptroller General to report to Congress on:
(1) expansion of the Program;
(2) pre-FIRM structures receiving discounted premiums; and
(3) a review of the three largest FEMA contractors used in administering the Program.

Sponsor

• Sen. Christopher Dodd [D, CT]

Users Tracking [2]

Users who are tracking this bill are also tracking:

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• S.2452 [1]
• H.R.2419 [1]

Committees

• Senate Banking, Housing, and Urban Affairs

Amendments

This bill has 47 amendments. See All AmendmentsHide All Amendments

Amendments to S.2284

Number	Status	Purpose
S.Amdt.4702	Offered	Amendment information not available.
S.Amdt.4703	Offered	Amendment information not available.
S.Amdt.4704	Offered	Amendment information not available.
S.Amdt.4705	Fail	To require the Comptroller General to conduct a study regarding mandatory purchasing requirements.
S.Amdt.4706	Pass	To improve the Office of the Flood Insurance Advocate.
S.Amdt.4707	Pass	In the nature of a substitute.
S.Amdt.4708	Offered	Amendment information not available.
S.Amdt.4709	Withdrawn	To establish a National Catastrophe Risks Consortium and a National Homeowners' Insurance Stabilization Program, and for other purposes.
S.Amdt.4710	Withdrawn	To end the premium subsidy for any property purchased after the date of enactment of this Act.
S.Amdt.4711	Pass	To require the Director to conduct a study on the impact, effectiveness, and feasibility of amending section 1361 of the National Flood Insurance Act of 1968 to include widely used and nationally recognized building codes as part of the floodplain management criteria developed under such section.
S.Amdt.4713	Offered	Amendment information not available.
S.Amdt.4714	Offered	Amendment information not available.
S.Amdt.4715	Pass	To provide that no changes in flood insurance status for any areas located in the St. Louis District of the Corps of Engineers can go into effect until the remapping process is completed for that entire District.
S.Amdt.4716	Withdrawn	To require persons located in flood prone areas to hold flood insurance as a condition for receiving federal disaster assistance.
S.Amdt.4717	Offered	Amendment information not available.
S.Amdt.4718	Offered	Amendment information not available.
S.Amdt.4719	Fail	To provide for the optional purchase of insurance against loss resulting from physical damage to or loss of real property or personal property related thereto located in the United States arising from any flood or windstorm.
S.Amdt.4720	Offered	Of a perfecting nature.
S.Amdt.4721	Withdrawn	Of a perfecting nature.
S.Amdt.4722	Fail	To increase maximum coverage limits.
S.Amdt.4723	Fail	To allow for a reasonable 5-year phase-in period for adjusted premiums.
S.Amdt.4724	Pass	To study alternative approaches to ensure the future of the National Flood Insurance Program by requiring greater efficiency and financial accountability.
S.Amdt.4725	Pass	To deny premium subsidies to homeowners who refuse to accept an offer of Federal assistance to alter or relocate their property in an effort to minimize future flood damages and costs.
S.Amdt.4726	Offered	Amendment information not available.
S.Amdt.4727	Pass	To impose a civil penalty for noncompliance with certain reporting requirements.
S.Amdt.4728	Pass	To require clear and comprehensible disclosure of conditions, exclusions, and other limitations pertaining to flood insurance coverage.
S.Amdt.4729	Offered	Amendment information not available.
S.Amdt.4730	Pass	To provide 2 additional members to the Technical Mapping Advisory Council.
S.Amdt.4731	Offered	Amendment information not available.
S.Amdt.4732	Offered	Amendment information not available.
S.Amdt.4733	Pass	To require the Director of the Federal Emergency Management Agency to enhance communication and outreach to States, Communities, and property owners about the effects of changes to flood risk maps and flood insurance purchase requirements, and to engage with communities to enhance communication and outreach to their residents on such matters.
S.Amdt.4734	Withdrawn	To provide compensation to the citizens of Fernley, Nevada damaged by the failure of the Truckee Canal.
S.Amdt.4735	Pass	To modify the project for flood control, Big Sioux River and Skunk Creek, Sioux Falls, South Dakota.
S.Amdt.4736	Pass	To ensure that the purchase price of flood insurance policies required to be purchased in areas of residual risk accurately reflects the level of flood protection provided by any levee, dam, or other man-made structure in such area.
S.Amdt.4737	Pass	To increase the supply and lower the cost of petroleum by temporarily suspending the acquisition of petroleum for the Strategic Petroleum Reserve.
S.Amdt.4738	Offered	Amendment information not available.
S.Amdt.4739	Offered	Amendment information not available.
S.Amdt.4740	Offered	Amendment information not available.
S.Amdt.4741	Offered	Amendment information not available.
S.Amdt.4742	Offered	Amendment information not available.
S.Amdt.4743	Offered	Amendment information not available.
S.Amdt.4744	Offered	Amendment information not available.
S.Amdt.4745	Offered	Amendment information not available.
S.Amdt.4746	Offered	Amendment information not available.
S.Amdt.4747	Offered	Amendment information not available.
S.Amdt.4748	Offered	Amendment information not available.
S.Amdt.4749	Offered	Amendment information not available.

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Introduced		Voted on by Senate		Voted on by House		Considered By President		Bill Becomes Law
November 01, 2007

Related Bills:

• H.R.3121

Related Issue Areas:

• Emergency management
• Administrative procedure
• Apartment houses
• Budgets
• 32 more
• Business
• Casualty insurance
• Collection of accounts
• Congress
• Congressional investigations
• Congressional reporting requirements
• Department of Homeland Security
• Disaster insurance
• Employee training
• Executive departments
• Federal Emergency Management Agency
• Federal advisory bodies
• Finance
• Floods
• Government contractors
• Government information
• Government trust funds
• Housing
• Insurance agents
• Insurance companies
• Insurance premiums
• Job training
• Law
• Maps
• Mediation
• Ombudsman
• Politics and government
• Property insurance
• Public contracts
• Standards
• Subsidies
• Water resources

In the News

May 08, 2008 NAM Says Sen. McConnell's Amendment Will Lower Energy Prices and ...

... Mitch McConnell (R-KY) as an amendment to the Flood Insurance Bill (S. 2284) and expressed concerns about the bill offered by Senator Harry Reid (D-NV). ...

Source: Manufacturers' Blog, DC
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April 30, 2008 Environmental, Consumer, Taxpayer and Insurance Advocates Join ...

The House has already passed legislation (HR 3121) and the Senate is expected to consider its version (S. 2284) before the Memorial Day recess. ...

Source: Earthtimes (press release), UK
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April 30, 2008 Environmental, Consumer, Taxpayer and Insurance Advocates Join ...

The House has already passed legislation (HR 3121) and the Senate is expected to consider its version (S. 2284) before the Memorial Day recess. ...

Source: Insurance News Net (press release), PA
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Blog Coverage

May 09, 2008 Today in Washington DC - May 9, 2008

The next votes are scheduled for Tuesday are on the energy amendments to the flood insurance bill (S. 2284), the GOP proposal, and a Democrat amendment to halt the filling of the Strategic Petroleum Reserve. Both amendments will require ...

Source: ARRA News Service
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May 08, 2008 SENATE Key Vote Alert - Flood Insurance

Amendment 4709) to the Flood Insurance Reform and Modernization Act of 2007 (S. 2284). This key vote will be part of our 2008 Congressional Scorecard. This proposal would direct the Treasury Secretary to offer subsidized funding for ...

Source: Club for Growth
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May 08, 2008 Senate to Vote on Competing Energy Plans

As of now, these will be offered as amendments to the Flood Insurance Reform and Modernization Act (S. 2284) which is currently being debated. Majority Leader Reid (D-NV) and Minority Leader McConnell (R-KY) had previously discussed ...

Source: SENATUS
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