42 U.S.C. § 4014 : US Code - Section 4014: Estimates of premium rates

Search 42 U.S.C. § 4014 : US Code - Section 4014: Estimates of premium rates

(a) Studies and investigations
The Director is authorized to undertake and carry out such
studies and investigations and receive or exchange such information
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 4018 of this title
and reflected in such rates,
(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, and
(iii) any remaining administrative expenses incurred in
carrying out the flood insurance and floodplain management
programs (including the costs of mapping activities under
section 4101 of this title) not included under clause (ii),
which shall be recovered by a fee charged to policyholders
and such fee shall not be subject to any agents' commissions,
company expense allowances, or State or local premium taxes,
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 4012(a) of this
title (or is recommended to the Congress under section 4012(b) of
this title);
(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 chapter, and which, together with a fee
charged to policyholders that shall not be not subject to any
agents' commission, company expenses allowances, or State or
local premium taxes, shall include any administrative expenses
incurred in carrying out the flood insurance and floodplain
management programs (including the costs of mapping activities
under section 4101 of this title); and
(3) the extent, if any, to which federally assisted or other
flood protection measures initiated after August 1, 1968, affect
such rates.
(b) Utilization of services of other Departments and agencies
In carrying out subsection (a) of this section, the Director
shall, to the maximum extent feasible and on a reimbursement 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) Priority to studies and investigations in States or areas
evidencing positive interest in securing insurance under program
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) Parishes of Louisiana; premium rates
Notwithstanding any other provision of law, any structure
existing on December 31, 1973, and located within Avoyelles,
Evangeline, Rapides, or Saint Landry Parish in the State of
Louisiana, which the Secretary 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 chapter (if and to the extent it is eligible
for such insurance under the other provisions of this chapter) at
premium rates that shall not exceed those which would be applicable
if such additional hazards did not exist.
(e) Eligibility of community making adequate progress on
construction of flood protection system for rates not exceeding
those applicable to completed flood protection system;
determination of adequate progress
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
chapter (if and to the extent it is eligible for such insurance
under the other provisions of this chapter) 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 least 50 percent
completed.
(f) Availability of flood insurance in communities restoring
disaccredited flood protection systems; criteria; rates
Notwithstanding any other provision of law, this subsection shall
only apply in a community which has been determined by the Director
of the Federal Emergency Management Agency to be in the process of
restoring flood protection afforded by a flood protection system
that had been previously accredited on a Flood Insurance Rate Map
as providing 100-year frequency flood protection but no longer does
so. Except as provided in this subsection, in such a community,
flood insurance shall be made available to those properties
impacted by the disaccreditation of the flood protection system at
premium rates that do not exceed those which would be applicable to
any property located in an area of special flood hazard, the
construction of which was started prior to the effective date of
the initial Flood Insurance Rate Map published by the Director for
the community in which such property is located. A revised Flood
Insurance Rate Map shall be prepared for the community to delineate
as Zone AR the areas of special flood hazard that result from the
disaccreditation of the flood protection system. A community will
be considered to be in the process of restoration if -
(1) the flood protection system has been deemed restorable by a
Federal agency in consultation with the local project sponsor;
(2) a minimum level of flood protection is still provided to
the community by the disaccredited system; and
(3) restoration of the flood protection system is scheduled to
occur within a designated time period and in accordance with a
progress plan negotiated between the community and the Federal
Emergency Management Agency.
Communities that the Director of the Federal Emergency Management
Agency determines to meet the criteria set forth in paragraphs (1)
and (2) as of January 1, 1992, shall not be subject to revised
Flood Insurance Rate Maps that contravene the intent of this
subsection. Such communities shall remain eligible for C zone rates
for properties located in zone AR for any policy written prior to
promulgation of final regulations for this section. Floodplain
management criteria for such communities shall not require the
elevation of improvements to existing structures and shall not
exceed 3 feet above existing grade for new construction, provided
the base flood elevation based on the disaccredited flood control
system does not exceed five feet above existing grade, or the
remaining new construction in such communities is limited to infill
sites, rehabilitation of existing structures, or redevelopment of
previously developed areas.
The Director of the Federal Emergency Management Agency shall
develop and promulgate regulations to implement this subsection,
including minimum floodplain management criteria, within 24 months
after October 28, 1992.