Sec. 7. Litigation process oversight and reform
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Part C of chapter II of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4081 et seq.), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section: The Administrator shall monitor and oversee litigation conducted by Write Your Own companies arising under contracts for flood insurance sold pursuant to this title, to ensure that— litigation expenses are reasonable, appropriate, and cost-effective; and Write Your Own companies comply with guidance and procedures established by the Administrator regarding the conduct of litigation.
The Administrator may deny reimbursement for litigation expenses that are determined to be unreasonable, excessive, contrary to guidance issued by the Administrator, or outside the scope of any arrangement entered into with a Write Your Own company. The Administrator may direct litigation strategy for claims arising under a contract for flood insurance sold by a Write Your Own company. If at any time, the Administrator determines there is a conflict of interest between the Write Your Own company and the National Flood Insurance Program, or it is in the best interest of the United States, the Administrator may promptly take any necessary action to be substituted for the WYO company in any action arising out of any claim arising under a contract for flood insurance sold by a Write Your Own company. .
The Administrator of the Federal Emergency Management Agency shall initiate compliance with section 1352(d) of the National Flood Insurance Act of 1968, as added by the amendment made by subsection
(a)of this section, not later than the expiration of the 12-month period beginning on the date of the enactment of this Act.
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Sec. 7
Litigation process oversight and reform
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