Sec. 101. Risk transfer
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Section 1345 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4081 ) is amended by striking subsection
(e)and inserting the following: The Administrator shall annually transfer a portion of the risk associated with the flood insurance program to the private reinsurance or capital markets— if the Administrator has determined that the rates and terms of the transfer are reasonable and appropriate; and in an amount that is sufficient to— maintain the ability of the program to pay claims; and limit the exposure of the program to potential catastrophic losses from extreme events. In carrying out paragraph (1), the Administrator shall consider all forms of risk transfer, including traditional reinsurance, catastrophe bonds, collateralized reinsurance, resilience bonds, and other insurance-linked securities, in order to— maximize pricing competition and the diversity of sources of capital; and secure the best value for the flood insurance program. .
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