UPDATE: H.R.2874 – 21st Century Flood Reform Act
LATEST ACTION:
BILL SUMMARY:
21st Century Flood Reform Act
TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION
(Sec. 101) This bill amends the National Flood Insurance Act of 1968 to change annual limits on premium increases for insurance obtained through the National Flood Insurance Program (NFIP).
(Sec. 102) The
(Sec. 103)
(Sec. 104)
(Sec. 105)
(Sec. 106)
(Sec. 107)
(Sec. 108) State or local governments must require a seller or lessor to disclose to a purchaser or lessee any previous flood damage or flood insurance claims, and any obligation to purchase flood insurance. This requirement, whether by statute or regulation, must be adopted for the area to qualify for participation in NFIP.
(Sec. 109)
(Sec. 110) NFIP is extended through FY2022.
TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT
(Sec. 201)
(Sec. 202)
(Sec. 203) If an NFIP policyholder switches to private flood insurance during the NFIP coverage period,
(Sec. 204) Mutual aid societies may sell private flood insurance, subject to state law. (A mutual aid society is an organization of members who share a common set of ethical or religious beliefs.) This coverage satisfies the mandatory purchase requirement.
(Sec. 205) The Government Accountability Office (GAO) must report on the feasibility of reducing flood insurance premiums and eliminating the need for flood insurance coverage by authorizing flood damage savings accounts.
(Sec. 206) If determined feasible by the GAO,
TITLE III--MAPPING FAIRNESS
(Sec. 301) In establishing premium rates,
(Sec. 302)
(Sec. 303) The bill revises the appeal period for
(Sec. 304) This bill amends the Biggert-Waters Flood Insurance Reform Act of 2012 to revise the time period
(Sec. 305)
TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED MITIGATION
(Sec. 401) The bill revises the NFIP community rating program to require (currently, allows)
TITLE V--PROGRAM INTEGRITY
(Sec. 501) The bill makes
(Sec. 502) The premium surcharge amount on flood insurance is changed to: (1) increase annual surcharges for all primary residences, (2) reduce annual surcharges for certain non-owner occupied residential properties, and (3) increase annual surcharges for all other non-primary residences.
(Sec. 503)
During the phase-in period of the required reserve ratio for the NFIP reserve fund,
(Sec. 504) This bill revises NFIP classifications of properties incurring multiple flood losses and coverage for properties that have incurred multiple flood losses.
For multiple loss properties,
Certain multiple loss properties are subject to minimum deductibles.
Multiple loss properties are not eligible for subsidized premium rates that apply to properties newly mapped into areas with special flood hazards.
The bill revises the Flood Mitigation Assistance program, including to make assistance available to additional multiple loss properties.
(Sec. 505) This bill eliminates NFIP coverage for properties that prospectively exceed specified lifetime levels of claim payments.
(Sec. 506) This bill limits the availability of NFIP coverage for high-risk properties, including new structures built in a special flood hazard zone and structures with high replacement costs.
(Sec. 507) The allowance paid to Write Your Own companies is limited to 27.9% of the premium rate.
(Sec. 508) This bill amends the Flood Disaster Protection Act of 1973 to increase penalties for violations of the mandatory purchase requirement.
The GAO must report on the mandatory purchase requirement.
(Sec. 509) If a state allows all-perils policies to cover flood damage, property in that state is not subject to NFIP's mandatory purchase requirement.
(Sec. 510) The bill raises the maximum loan amount for the small loan exception to NFIP's mandatory purchase requirement from
A state or local government, or a private lender, may require flood insurance coverage for structures outside a special flood hazard area.
(Sec. 511)
(Sec. 511) [sic] The GAO must report on options for simplifying NFIP.
[NOTE: The contents of this legislative update are current as of
BILL NUMBER: 115th
CHAMBER OF ORIGIN:
CURRENT CHAMBER:
For DETAILED LEGISLATIVE INFORMATION on H.R.2874, visit: https://www.congress.gov/bill/115th-congress/house-bill/2874
BILL TEXT: https://www.congress.gov/bill/115th-congress/house-bill/2874/text
ACTIONS-TO-DATE (ordered by most recent first):
SPONSOR(S)*:
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[*Note: Sponsors are current as of
COMMITTEES:
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