Sec. 206. GAO study of flood damage savings accounts
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The Comptroller General of the United States shall conduct a study to analyze the feasibility and effectiveness, and problems involved, in reducing flood insurance premiums and eliminating the need for purchase of flood insurance coverage by authorizing owners of residential properties to establish flood damage savings accounts described in subsection
(b)in lieu of complying with the mandatory requirements under section 102 of the Flood Disaster Protection Act of 1973 ( 42 U.S.C. 4012a ) to purchase flood insurance for such properties. A flood damage savings account described in this subsection is a savings account— that would be established by an owner of residential property with respect to such property in accordance with requirements established by the Administrator of the Federal Emergency Management Agency; and the proceeds of which would be available for use only to cover losses to such properties resulting from flooding, pursuant to adjustment of a claim for such losses in the same manner and according to the same procedures as apply to claims for losses under flood insurance coverage made available under the National Flood Insurance Act of 1968. Such study shall include an analysis of, and recommendation regarding, each of the following issues: Whether authorizing the establishment of such flood damage savings accounts would be effective and efficient in reducing flood insurance premiums, eliminating the need for purchase of flood insurance coverage made available under the National Flood Insurance Program, and reducing risks to the financial safety and soundness of the National Flood Insurance Fund. Possible options for structuring such flood damage savings accounts, including— what types of institutions could hold such accounts and the benefits and problems with each such type of institution; considerations affecting the amounts required to be held in such accounts; and options regarding considerations the conditions under which such an account may be terminated. The feasibility and effectiveness, and problems involved in, authorizing the Administrator of the Federal Emergency Management Agency to make secondary flood insurance coverage available under the National Flood Insurance Program to cover the portion of flood losses or damages to properties for which such flood damage savings accounts have been established that exceed the amounts held in such accounts. The benefits and problems involved in authorizing the establishment of such accounts for non-residential properties. Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Administrator that sets forth the analysis, conclusions, and recommendations resulting from the study under this section. Such report shall identify elements that should be taken into consideration by the Administrator in designing and carrying out the demonstration program under section 207.
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Sec. 206
GAO study of flood damage savings accounts
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