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additional flood insurance limits made available in excess of twice the limits made available under paragraph (1).
ESTIMATES OF PREMIUM RATES
Sec. 1307. (a) The Director is authorized to undertake and carry out such studies and investigations and receive or exchange such informations as may be necessary to estimate, and shall from time to time estimate, on an area, subdivision, or other appropriate basis
(1) the risk premium rates for flood insurance which
(A) based on consideration of the risk involved and accepted actuarial principles, and (B) including
(i) the applicable operating costs and allowances set forth in the schedules prescribed under section 1311 and reflected in such rates, and
(ii) any administrative expenses (or portion of such expenses) of carrying out the flood insurance program which, in his discretion, should properly be reflected
in such rates, would be required in order to make such insurance available on an actuarial basis for any types and classes of properties for which insurance coverage is available under section 1305(a) (or is recommended to the Congress under section 1305(b));
(2) the rates, if less than the rates estimated under paragraph (1), which would be reasonable, would encourage prospective insureds to purchase flood insurance, and would be consistent with the purposes of this title; and
(3) the extent, if any, to which federally assisted or other flood protection measures initiated after the date of the enact
ment of this title affect such rates. (b) In carrying out subsection (a), the Director shall, to the maximum extent feasible and on a reimbursable basis, utilize the services of the Department of the Army, the Department of the Interior, The Department of Agriculture, the Department of Commerce, and the Tennessee Valley Authority, and, as appropriate, other Federal departments or agencies, and for such purposes may enter into agreements or other appropriate arrangements with any persons.
(c) The Director shall give priority to conducting studies and investigations and making estimates under this section in those States or areas (or subdivisions thereof) which he has determined have evidenced a positive interest in securing flood insurance coverage under the flood insurance program.
(d) Notwithstanding any other provision of law, any structure existing on the date of enactment of the Flood Disaster Protection Act of 1973 and located within Avoyelles, Evangeline, Rapides, or Saint Landry Parish in the State of Louisiana, which the Director determines is subject to additional flood hazards as a result of the construction or operation of the Atchafalaya Basin Levee System, shall be eligible for flood insurance under this title (if and to the extent it is eligible for such insurance under the other provisions of this title) at premium rates that shall not exceed those which would be applicable if such additional hazards did not exist.
(e) Notwithstanding any other provision of law, any community that has made adequate progress, acceptable to the Director, on the construction of a flood protection system which will afford flood protection for the one-hundred-year frequency flood as determined by the Director, shall be eligible for flood insurance under this title (if and to the extent it is eligible for such insurance under the other provisions of this title) at premium rates not exceeding those which would be applicable under this section if such flood protection system had been completed. The Director shall find that adequate progress on the construction of a flood protection system as required herein has been only if (1) 100 percent of the project cost of the system has been authorized, (2) at least 60 percent of the project cost of the system has been appropriated, (3) at least 50 percent of the project cost of the system has been expended, and (4) the system is at lest 50 percent completed.
ESTABLISHMENT OF CHARGEABLE PREMIUM RATES
SEC. 1308. (a) On the basis of estimates made under section 1307 and such other information as may be necessary, the Director shall from time to time, after consultation with the advisory committee authorized under section 1318, appropriate representatives of the pool formed or otherwise created under section 1331, and appropriate representatives of the insurance authorities of the respective States, prescribe by regulation
(1) chargeable premium rates for any types and classes of properties for which insurance coverage shall be available under section 1305 (at less than the estimated risk premium rates under section 1307(a)(1), where necessary), and
(2) the terms and conditions under which, and the areas (including subdivisions thereof) within which such rates shall
apply. (b) Such rates shall, insofar as practicable, be
(1) based on a consideration of the respective risks involved, including differences in risks due to land use measures, floodproofing, flood forecasting, and similar measures,
(2) adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses, or if less than such amount consistent with the objective of making flood insurance available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with the purposes of this title, and
(3) stated so as to reflect the basis for such rates, including the differences (if any) between the estimated risk premium rates under section 1307(a)(1) and the estimated rates under
section 1307(a)(2). (c) Notwithstanding any other provision of this title, the chargeable rate with respect to any property, the construction or substantial improvement of which the Director determines has been started after December 31, 1974, or the effective date of the initial rate map published by the Director under paragraph (2) of section 1360 for the area in which such property is located, whichever is later, shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under section 1307(a)(1).
(d) In the event any chargeable premium rate prescribed under this section
(1) is a rate which is not less than the applicable estimated risk premium rate under section 1307(a)(1), and (2) includes any amount for administrative expenses
of carrying out the flood insurance program which have been estimat
ed under clause (ii) of section 1307(a)(1)(B), a sum equal to such amount shall be paid to the Director, and he shall deposit such sum in the National Flood Insurance Fund established under section 1310.
FINANCING Sec. 1309. (a) All authority which was vested in the Housing and Home Finance Administrator by virtue of section 15(e) of the Federal Flood Insurance Act of 1956 (70 Stat. 1084) (pertaining to the issue of notes or other obligations or the Secretary of the Treasury), as amended by subsections (a) and (b) of section 1303 of this Act, shall be available to the Director for the purpose of carrying out the flood insurance program under this title; except that the total amount of notes and obligations which may be issued by the Director pursuant to such authority (1) without the approval of the President, may not exceed $500,000,000, and (2) with the approval of the President, may not exceed $1,000,000,000. The Director shall report to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate at any time when he requests the approval of the President in accordance with the preceding sentence.
(b) Any funds borrowed by the Director under this authority shall, from time to time, be deposited in the National Flood Insurance Fund established under section 1310.
NATIONAL FLOOD INSURANCE FUND SEC. 1310. (a) To carry out the flood insurance program authorized by this title, the Director is authorized to establish in the Treasury of the United States a National Flood Insurance Fund (hereinafter referred to as the "fund”) which shall be available as described in subsection (f), without fiscal year limitation
(1) for making such payments as may, from time to time, be required under section 1334;
(2) to pay reinsurance claims under the excess loss reinsurance coverage provided under section 1335;
(3) to repay to the Secretary of the Treasury such sums as may be borrowed from him (together with interest) in accordance with the authority provided in section 1309;
(4) to pay such administrative expenses (or portion of such expenses) of carrying out the flood insurance program as he may deem necessary; and
(5) for the purposes specified in subsection (d) under the conditions provided therein. (b) The fund shall be credited with
(1) such funds borrowed in accordance with the authority provided in section 1309 as may from time to time be deposited in the fund;
(2) premiums, fees, or other charges which may be paid or collected in connection with the excess loss reinsurance coverage provided under section 1335;
(3) such amounts as may be advanced to the fund from appropriations in order to maintain the fund in an operative condition adequate to meet its liabilities;
(4) interest which may be earned on investments of the fund pursuant to subsection (c);
(5) such sums as are required to be paid to the Director under section 1308(d); and
(6) receipts from any other operations under this title (including premiums under the conditions specified in subsection (d), and salvage proceeds, if any, resulting from reinsurance coverage). (c) If, after
(1) all outstanding obligations of the fund have been liquidated, and
(2) any outstanding amounts which may have been advanced to the fund from appropriations authorized under section 1376(a)(2XB) have been credited to the appropriation from which advanced, with interest accrued at the rate, prescribed under section 15(e) of the Federal Flood Insurance Act of 1956,
as in effect immediately prior to the enactment of this title. the Director determines that the moneys of the fund are in excess of current needs, he may request the investment of such amounts as he deems advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States.
(d) In the event the Director makes a determination in accordance with the provisions of section 1340 that operation of the flood insurance program, in whole or in part, should be carried out through the facilities of the Federal Government, the fund shall be available for all purposes incident thereto, including
(1) cost incurred in the adjustment and payment of any claims for losses, and
(2) payment of applicable operating costs set forth in the
schedules prescribed under section 1311, for so long as the program is so carried out, and in such event any premiums paid shall be deposited by the Director to the credit of the fund.
(e) An annual business-type budget for the fund shall be prepared, transmitted to the Congress, considered, and enacted in the manner prescribed by sections 9103 and 9104 of title 31, United States Code for wholly-owned Government corporations.
(f) The Fund shall be available, with respect to any fiscal year beginning on or after October 1, 1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purpose described in subsection (dX1) without such approval.
Comma omitted in original.
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