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Code · BILL · 115th Congress · H.R. 1423 (Introduced in House) — To reauthorize and improve the national flood insurance program, and for other purposes. · Sec. 5

Sec. 5. Improvement of administrative and litigation process for claims adjudication

472 words·~2 min read·/bill/115/hr/1423/ih/section-5

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Section 1333 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4053 ) is amended— by striking mailing of notice of disallowance or partial disallowance by the Administrator and inserting the final determination by the Administrator disallowing or partially disallowing the claim ; and by adding after the period at the end the following: If the claimant prevails in an action under this section, the court may award costs of litigation, including attorneys fee, litigation expenses, and engineering and other expert expenses, to the claimant.
Any such award shall be paid by the Administrator and, upon such payment, the Administrator shall be subrogated to the rights of the claimant to recover such costs for which the Administrator has compensated the claimant from any company or other insurer responsible for the disallowance of the claim. . Section 1341 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4072 ) is amended— by striking mailing of notice of disallowance or partial disallowance of and inserting the final determination disallowing or partially disallowing ; and by adding after the period at the end the following:
If the claimant prevails in an action under this section, the court may award costs of litigation, including attorneys fee, litigation expenses, and engineering and other expert expenses, to the claimant. Any such award shall be paid by the Administrator and, upon such payment, the Administrator shall be subrogated to the rights of the claimant to recover such costs for which the Administrator has compensated the claimant from any insurance company or other insurer or insurance adjustment organization that may be responsible for the disallowance of the claim. .
Section 1312 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4019 ) is amended by adding at the end the following new subsection: If the claimant prevails in any appeal to the Administrator of the disallowance of a claim for losses covered by flood insurance made available under this title, the Administrator shall award costs of the appeal, including attorneys fee, any proceeding expenses, and engineering and other expert expenses, to the claimant. . Section 1347 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4083 ) is amended by adding at the end the following new subsection:
The Administrator shall establish a fee schedule for payment of private counsel used to represent the Administrator in controversies, actions, and proceedings in connection with the National Flood Insurance Program under this title. The Administrator shall require any private counsel obtained in connection with any controversy, action, or proceeding in connection with the National Flood Insurance Program under this title to obtain authorization from the Administrator before taking any major action associated with such controversy, action, or proceeding, which shall include settlement, hiring experts, and such other actions as the Administrator shall specify. .
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