42 U.S.C. § 4055 — Reinsurance coverage
submitted 58 years ago by Pub. L. 90-448 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 295 words · no verdicts yet
The Administrator may provide reinsurance for flood-insurance losses above the pool's retained losses and may obtain private reinsurance. The pool must submit excess-loss claims on a portfolio basis under the Administrator's terms.
(a) Excess losses. (1) The Administrator* may take needed action to make reinsurance available to the pool for proved and approved flood-insurance losses above the losses the pool assumes under the excess-loss agreement. (2) The Administrator may obtain private-market reinsurance for flood-program coverage at rates and terms the Administrator finds reasonable and appropriate, in an amount sufficient to keep the program able to pay claims.
(b) Contract and payment. Reinsurance must be made available by contract, agreement, or another arrangement, in return for a premium, fee, or other charge the Administrator finds necessary to cover expected losses and other reinsurance costs.
(c) Excess-loss agreement. The Administrator may negotiate such an agreement from time to time. After giving up reinsurance, the pool must retain enough flood-insurance risk to further this chapter while, as far as practicable, preserving appropriate financial participation and risk sharing by participating insurers.
(d) Portfolio claims. The pool must submit all claims for losses above its assumed losses as a portfolio, under the Administrator's terms and conditions.
The Administrator* is authorized to take such action as may be necessary in order to make available, to the pool formed or otherwise created under section 4051 of this title, reinsurance for losses (due to claims for proved and approved losses covered by flood insurance) which are in excess of losses assumed by such pool in accordance with the excess loss agreement entered into under subsection (c).
The Administrator is authorized to secure reinsurance of coverage provided by the flood insurance program from the private market at rates and on terms determined by the Administrator to be reasonable and appropriate, in an amount sufficient to maintain the ability of the program to pay claims.
Such reinsurance shall be made available pursuant to contract, agreement, or any other arrangement, in consideration of such payment of a premium, fee, or other charge as the Administrator finds necessary to cover anticipated losses and other costs of providing such reinsurance.
The Administrator is authorized to negotiate an excess loss agreement, from time to time, under which the amount of flood insurance retained by the pool, after ceding reinsurance, shall be adequate to further the purposes of this chapter, consistent with the objective of maintaining appropriate financial participation and risk sharing to the maximum extent practicable on the part of participating insurance companies and other insurers.
All reinsurance claims for losses in excess of losses assumed by the pool shall be submitted on a portfolio basis by such pool in accordance with terms and conditions established by the Administrator.
Source credit: (Pub. L. 90–448, title XIII, § 1335, Aug. 1, 1968, 82 Stat. 583; 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)(3), 100238(b)(1), July 6, 2012, 126 Stat. 954, 958.)
- 1968Enacted · Pub. L. 90-448 · 82 Stat. 583
- 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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