42 U.S.C. § 4052 — Agreements with flood insurance pool
submitted 58 years ago by Pub. L. 90-448 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 319 words · no verdicts yet
The Administrator may make agreements with the flood-insurance pool. The agreements must address risk capital, premiums, profits and losses, costs, equalization payments, reinsurance, and participation and cooperation requirements.
(a) Authorization. The Administrator* may enter agreements with the pool formed under this part that the Administrator considers necessary to carry out this chapter.
(b) Required terms. The agreements must state*: (1) when and how risk capital will be available to adjust and pay claims; (2) how the pool and participating insurers will share premiums and realized or sustained profits and losses; (3) the maximum profit the Administrator sets and includes in the schedules under section 4018; (4) when operating costs and scheduled allowances may be paid; and (5) when premium-equalization payments under section 4054 and reinsurance claims under section 4055 will be paid.
(c) Additional provisions. The agreements must also ensure that: (1) no insurer meeting section 4051(b)'s requirements and intending to participate on a risk-sharing basis is excluded from the pool; (2) participating insurers take needed action to keep flood-insurance coverage or pool reinsurance continuous; and (3) insurers, agents, brokers, and claims-adjustment organizations may cooperate with the pool as fiscal agents or otherwise, on a non-risk-sharing basis, as far as practicable.
The Administrator* is authorized to enter into such agreements with the pool formed or otherwise created under this part as he deems necessary to carry out the purposes of this chapter.
Such agreements shall specify—
the terms and conditions under which risk capital will be available for the adjustment and payment of claims,
the terms and conditions under which the pool (and the companies and other insurers participating therein) shall participate in premiums received and profits or losses realized or sustained,
the maximum amount of profit, established by the Administrator and set forth in the schedules prescribed under section 4018 of this title, which may be realized by such pool (and the companies and other insurers participating therein),
the terms and conditions under which operating costs and allowances set forth in the schedules prescribed under section 4018 of this title may be paid, and
the terms and conditions under which premium equalization payments under section 4054 of this title will be made and reinsurance claims under section 4055 of this title will be paid.
In addition, such agreements shall contain such provisions as the Administrator finds necessary to assure that—
no insurance company* or other insurer* which meets the requirements prescribed under section 4051(b) of this title, and which has indicated an intention to participate in the flood insurance program on a risk-sharing basis, will be excluded from participating in the pool,
the insurance companies and other insurers participating in the pool will take whatever action may be necessary to provide continuity of flood insurance coverage or reinsurance by the pool, and
any insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations will be permitted to cooperate with the pool as fiscal agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable.
Source credit: (Pub. L. 90–448, title XIII, § 1332, Aug. 1, 1968, 82 Stat. 582; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, §§ 100232(d)(2), 100238(b)(1), July 6, 2012, 126 Stat. 954, 958.)
- 1968Enacted · Pub. L. 90-448 · 82 Stat. 582
- 1983Amended · Pub. L. 98-181 · 97 Stat. 1229
- 2012Amended · Pub. L. 112-141 · 126 Stat. 954, 958
A history note hasn’t been published yet. The record shows enactment by Pub. L. 90-448 on 1968-08-01.
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