42 U.S.C. § 4018 : US Code - Section 4018: Operating costs and allowances; definitions

Search 42 U.S.C. § 4018 : US Code - Section 4018: Operating costs and allowances; definitions

(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
subchapter II of this chapter, and such schedules shall from time
to time be prescribed in regulations.
(b) For purposes of subsection (a) of this section -
(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 chapter.