Hurricanes Katrina and Rita Flood Insurance Buy-In Act of 2005 - Establishes a temporary flood insurance buy-in program. Instructs the Director of the Federal Emergency Management Agency to make flood insurance coverage available under such program for eligible structures (but not their contents) for flooding resulting from Hurricane Katrina or Hurricane Rita. Limits eligibility to structures located in an area not subject to the mandatory purchase requirements of the national flood insurance program, and which were not covered by such insurance at the time of the hurricanes. Prescribes a formula for determination of premiums, which may be paid by deduction from the amount of any claims payable under coverage by the buy-in program.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3922 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3922
To strengthen the national flood insurance program, encourage
participation in the program, and provide owners of properties not
located in flood hazard zones that, therefore, were not subject to the
mandatory purchase requirements of the national flood insurance
program, but which suffered flood damage resulting from Hurricane
Katrina or Hurricane Rita and were covered by windstorm insurance, a
one-time opportunity to purchase flood insurance coverage for a period
covering such hurricane.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2005
Mr. Taylor of Mississippi (for himself, Mr. Melancon, Mr. Frank of
Massachusetts, Mr. Blumenauer, Mr. Boyd, Mr. Butterfield, Mr. Cardoza,
Mr. Case, Mr. Ford, Ms. Kaptur, Mr. Peterson of Minnesota, Mr. Ross,
Mr. Scott of Georgia, Mr. Ackerman, Mr. Costa, Mr. Thompson of
Mississippi, Mr. Jefferson, Mr. Barrow, Mr. Berry, Mr. Moore of Kansas,
Mr. Michaud, Mr. Cramer, Mr. Holden, Mr. Israel, Mr. Matheson, Mr.
Davis of Tennessee, Mr. McIntyre, Mr. Schiff, Mr. Boren, and Mr.
Pomeroy) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To strengthen the national flood insurance program, encourage
participation in the program, and provide owners of properties not
located in flood hazard zones that, therefore, were not subject to the
mandatory purchase requirements of the national flood insurance
program, but which suffered flood damage resulting from Hurricane
Katrina or Hurricane Rita and were covered by windstorm insurance, a
one-time opportunity to purchase flood insurance coverage for a period
covering such hurricane.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hurricanes Katrina and Rita Flood
Insurance Buy-In Act of 2005''.
SEC. 2. TEMPORARY FLOOD INSURANCE BUY-IN PROGRAM.
(a) In General.--The Director of the Federal Emergency Management
Agency shall make available flood insurance coverage under the national
flood insurance program available for eligible structures, in
accordance with this section.
(b) Scope of Coverage.--
(1) Eligible losses.--Coverage may be made available under
this section only for a damage or loss to an eligible
structure, but not including any contents thereof, from
flooding resulting from Hurricane Katrina or Hurricane Rita.
(2) Amount.--The amount of such coverage made available
under this section for an eligible structure may not exceed the
lesser of--
(A) the maximum amount of coverage that may be made
available for such structure under the national flood
insurance program; and
(B) the amount of coverage provided for the
structure, as of August 29, 2005, under the policy for
losses caused by wind or windstorm (as referred to in
subsection (c)(3)).
(c) Eligible Structures.--For purposes of this section, an eligible
structure is a structure that--
(1) sustained damage from flooding resulting from Hurricane
Katrina or Hurricane Rita of 2005;
(2) is of a type (including residential properties,
business properties, and others) for which coverage was
generally made available under the national flood insurance
program as of August 29, 2005;
(3) is located in a covered disaster area (as such term is
defined in subsection (h));
(4) was covered--
(A) in the case of a structure damaged by flooding
resulting from Hurricane Katrina, as of August 29,
2005, by an insurance policy for losses caused by wind
or windstorm; and
(B) in the case of a structure damaged by flooding
resulting from Hurricane Rita, as of September 23,
2005, by such a policy;
(5) is not located in an area that has been identified by
the Director as an area having special flood hazards (as such
term is used for purposes of section 102 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a)); and
(6) was not covered by flood insurance made available under
the national flood insurance program at the time of such
damage.
(d) Premiums.--
(1) Amount.--The Director shall charge, for coverage made
available under this section for an eligible structure,
premiums in the amount equal to 105 percent of the aggregate
amount of premiums that would have been charged, at the time,
for coverage for the structure under the national flood
insurance program (for the type and amount of coverage
provided) for the 10-year period that ends upon the date of
purchase of such coverage.
(2) Deduction from claims.--The Director shall provide that
a purchaser of coverage made available under this section may
pay premiums charged for such coverage pursuant to paragraph
(1) by deducting such amounts from the amount of any claims
payable under such coverage.
(3) Credits to nfif.--There shall be credited to the
National Flood Insurance Fund established under section 1310 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4017) the
following amounts.
(A) Any premiums collected pursuant to this
section.
(B) From amounts appropriated pursuant to
subsection (i)(1), an amount equal to the amount of any
premiums charged for coverage made available under this
subsection that are not collected by the Director as a
result of the operation of paragraph (2) of this
subsection.
(e) Claims.--Claims for damage or loss pursuant to coverage made
available under this section may be paid only from amounts made
available in appropriation Acts pursuant to subsection (i). Amounts in
the National Flood Insurance Fund established under section 1310 of the
National Flood Insurance Act of 1968, including any amount credited to
such Fund pursuant to subsection (d)(3), shall not be available for
paying claims under coverage made available under this section.
(f) Requirements to Obtain Future Coverage and Take Mitigation
Actions.--The Director may not make coverage available under this
section for an eligible structure unless the owner of the structure
enters into binding agreements, contained in such deed restrictions as
the Director considers appropriate, to ensure that such owner, and any
future owners, will--
(1) at all times after purchasing coverage under this
section for the structure, in perpetuity, maintain coverage
under the national flood insurance program, for any structures
located at any time on the same property on which, at the time
of purchase, such eligible structure is located, in an amount
at least equal to the lesser of--
(A) the value of the structure, as determined by
the Director; or
(B) the maximum limit of coverage made available
with respect to the particular type of property under
the national flood insurance program; and
(2) accept any offer to take mitigation actions or
activities made, with respect to the structure, under a
mitigation program under section 1323, 1361A, or 1366 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4030, 4102a,
4104c).
(g) Premium Rates for Future Coverage.--In establishing rates for
flood insurance coverage, other than coverage under this section, made
available under the national flood insurance program, the Director
shall not consider, in any manner--
(1) any premiums charged or collected pursuant to
subsection (d);
(2) any claims paid pursuant to coverage made available
under this section; or
(3) any amounts appropriated pursuant to subsection (i).
(h) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Covered disaster area.--The term ``covered disaster
area'' means an area--
(A) for which a major disaster was declared by the
President pursuant to title IV of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
as a result of Hurricane Katrina or Hurricane Rita of
2005; and
(B) in which the sale of flood insurance coverage
was available under the National Flood Insurance Act of
1968 as of August 29, 2004.
(2) Director.--The term ``Director'' means the Director of
the Federal Emergency Management Agency.
(i) Authorization of Appropriations.--
(1) For claims payments.--There are authorized to be
appropriated to the Director such sums as may be necessary to
cover all costs of flood insurance coverage made available
under this section, including administrative expenses and
claims under such coverage.
(2) For mitigation assistance.--There are authorized to be
appropriated such sums as may be necessary, for the national
flood insurance fund established under section 1310 of the
National Flood Insurance Act of 1968 and for the national flood
mitigation fund established under section 1367 of such Act (42
U.S.C. 4104d), for use only for mitigation activities under the
programs under sections 1323, 1361A, and 1366 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4030, 4102a, 4104c), as
appropriate, for eligible structures.
(j) Termination.--The Director may not enter into any contract or
policy for coverage under this section except pursuant to an
application for such coverage submitted to the Director before the
expiration of the 90-day period beginning on the date of the enactment
of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Sponsor introductory remarks on measure. (CR H11242)
Referred to the Subcommittee on Housing and Community Opportunity.
Sponsor introductory remarks on measure. (CR H4502-4503)
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