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Subpart F-Interstate Land Sales

Board and Appeals Officers

1720.500 Functions of the Interstate

Land Sales Board and appeals officers. There is hereby established within the Department of Housing and Urban Development an Interstate Land Sales Board, the members of which are designated as appeals officers and may be appointed from time to time by the Secretary. The functions, powers, and responsibilities delegated to an appeals officer designated from the Board as the authorized representative of the Secretary shall be to hear, consider and determine fully and finally appeals from decisions made pursuant to the rules in this part by administrative law judge and to conduct hearings pursuant to 15 U.S.C. 1715.

ed, addressed to the person at his last known residence, or at his or its last known principal office or place of business. If the address of the residence, principal office, or place of business is unknown and cannot with due diligence be ascertained service by mail may be made to any office at which the person to be served is known to be employed.

(c) Service on corporations, partnerships, associations, other entities. Service may be made upon any corporation, partnership, business association or other entity by serving any officer, director, partner, trustee, agent for service or managing agent thereof. A managing agent, within the meaning of this subsection, is an agent having the principal managerial responsibility in connection with the regular operation of a distinct office or activity of the enterprise.

(d) Service through attorney. When a person other than the Secretary and his staff shall have appeared of record in a proceeding, generally or specially, by attorney, all subsequent services of notices, orders, processes, and other documents in connection with such proceeding may be made upon such person by serving the attorney, except that subpoenas and other orders by which such person may be brought in contempt shall be served upon him by one of the methods described in paragraphs (b) and (c) of this section. In any case, copies of documents not served by serving such attorney shall be promptly sent to him; but service on such person shall be effective without proof that copies so sent were received.

(e) Proof of service. Proof of service shall not be required unless the fact of service is seasonably put in issue by appropriate motion or objection on the part of the person allegedly served or other party. In such cases, service may be established by written admission signed by or on behalf of the person to be served, or may be established prima facie by affidavit or certificate of service or mailing, as appropriate. When service is by registered or certified mail, it is complete upon delivery of the document by the post office.

§ 1720.510 Composition of the Interstate

Land Sales Board. The Board shall consist of four (4) appointed employees of the Department of Housing and Urban Development designated as appeals officers, other than employees in the Office of Interstate Land Sales Registration. An appeals officer on the Board shall be available at all times for the hearing of each appeal. Records of proceedings before an appeals officer shall be kept by a Secretary to the Board who shall be an employee of the Office of General Counsel.

8 1720.520 Decisions of appeals officer.

A decision of an appeals officer shall be considered the final action on behalf of the Secretary on matters properly before such officer pursuant to the rules in this part.

8 1720.525 Reconsideration of final deci

sion of appeals officer. Any hearing for reconsideration pursuant to g 1720.405 of this part shall be heard by any three of the four appeals officers who shall sit in review as the Interstate Land Sales Board.

8 1720.530 Department representative.

In each case being heard before an administrative law judge or an appeals officer, pursuant to this part, the De



Part 1905 1906 1907

Statewide "FAIR" Plans.
Standard reinsurance contract
State reimbursement requirement.

Page 888 894 903


1909 1910 1911 1912 1914 1915

General provisions
Criteria for land management and use.
Insurance coverage and rates ......
Sale of insurance and adjustment of claims.....
Communities eligible for the sale of insurance.....
Identification and mapping of special hazard

Consultation with local officials.............
Appeals from proposed flood elevation determina-

906 918 933 938 940

943 945

1916 1917

tions ............

1918 1920 1925

947 949 950

Administrative hearing procedures.
Procedure for map correction .....
Exemption of State-owned properties under self

insurance plan ......



1930 1931 1932 1933 1934

Description of program and offer to agents ....
Purchase of insurance and adjustment of claims....
Protective device requirements............
Coverages, rates, and prescribed policy forms .........
Classification of territories...

955 958 962 968 981






Sec. 1905.1 Definitions. 1905.2 Composition and supervision of

FAIR Plan. 1905.3 Coverage and operation of the Plan. 1905.4 Insurer participation and placement

program. 1905.5 Inspections and applications for in

surance. 1905.6 Deemer or binder requirement. 1905.7 Placement action after inspection

report. 1905.8 Prohibition of unnecessary reinspec

tions. 1905.9 Notice of cancellation or non

renewal. 1905.19 Impartial selection of adjusters. 1905.11 Coding and reports under the Plan. 1905.12 Inapplicability and waiver of regu

lations. 1905.13 Notice to policyholders.

AUTHORITY: Sec. 7(d), 79 Stat. 670; 42 U.S.C. 3535(d); sec. 1103, 82 Stat. 566; 12 U.S.C. 1749bbb-17.

SOURCE: 36 FR 24751, Dec. 22, 1971, unless otherwise noted.

(d) “Binder" means a temporary and preliminary contract of insurance to protect owner against loss from the occurrence of an insurable event before a policy is issued;

(e) “Deemer provision" means a provision in a Plan whereby interim coverage for an eligible risk is deemed automatically to attach upon the expiration of a specified period of time after an application for inspection and insurance;

(f) “Eligible property," "eligible risk,” or “risk eligible under the Plan" means any real property, personal property, or mixed real and personal property, potentially insurable under one or more lines of escential property insurance, subject to an inspection to ascertain insurability and applicable premium rates;

(g) “Environmental hazard” means any hazardous condition that might give rise to loss under an insurance contract, but which is beyond the control of the property owner or tenant;

(h) “Essential property insurance" means insurance against direct loss to property as defined and limited in standard fire policies and extended coverage endorsement thereon, as approved by the State insurance authori. ty, and insurance against the perils of vandalism and malicious mischief. Such insurance shall not include automobile insurance and shall not include insurance on such type of manufacturing risks as may be excluded by the State insurance authority;

(i) “FAIR Plan” or “Plan" means a statewide Plan to assure "fair access to insurance requirements” that is approved by the Administrator as meeting the criteria of Part A of the Act, including such modifications thereof as the Administrator may promulgate from time to time under this part in accordance with subsection 1214(b) of the Act (12 U.S.C. 1749bbb-6(b));

(j) "Inspection facility," with respect to any State, means any rating bureau or other person duly authorized and

§ 1905.1 Definitions.

As used in this part

(a) “Act" means the Urban Property Protection and Reinsurance Act of 1968, codified as title XII of the National Housing Act (12 U.S.C. 1749bbb1749bbb-21), which authorized the program. Section references are to the National Housing Act;

(b) “Administrator" means the Federal Insurance Administrator within the Department of Housing and Urban Development, to whom the Secretary has delegated the administration of the program (34 FR 2680, Feb. 27, 1969);

(c) “Applicant" means any property owner, or his authorized representative, who duly requests essential property insurance for a risk eligible under a FAIR Plan;

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