Sec. 303. Agreed Value Flood Protection Pilot Program
432 words·~2 min read·
/bill/115/s/1313/is/section-303·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Administrator may establish and carry out an optional Agreed Value Flood Protection Pilot Program for the 8-year period beginning on the date of enactment of this Act, or during the period beginning on the date of enactment of this Act and ending on the date on which authorization for the National Flood Insurance Program expires, whichever is shorter, under which— an eligible participant may purchase an agreed value flood protection policy to protect against losses resulting from physical damage to, or loss of, a covered structure, including any personal property related thereto, owned by the eligible participant arising from a flood occurring in the United States during the period for which the policy is in force; a covered agent may issue an agreed value flood protection policy to an eligible participant; and an eligible participant may not be denied the opportunity to purchase an agreed value flood protection policy solely on the basis of the geographic location of the eligible participant.
In order to purchase an agreed value flood protection policy, an eligible participant shall demonstrate that the value of the covered structure to be covered under the policy, including any contents within the covered structure, is not less than the coverage amount of the policy. Except as provided in paragraph (2), any covered agent may issue an agreed value flood protection policy to an eligible participant under the Program. A covered agent may not issue a policy under paragraph
(1)if the structure with respect to which the policy would apply is insured under the National Flood Insurance Program. The Administrator shall publish a brochure that compares the premium rates charged under the National Flood Insurance Program with the premium rates charged under the Program. A covered agent shall explain to an eligible participant the risks associated with an agreed value flood protection policy before the eligible participant purchases a policy. If a covered agent delivers the brochure published under paragraph
(1)to an eligible participant before the eligible participant purchases an agreed value flood protection policy, the delivery shall constitute prima facie evidence that the covered agent has satisfied the requirement under subparagraph (A). Not later than 1 year after the date on which the Program ends, the Administrator shall submit to Congress a report— containing data that was collected during the administration of the Program relating to underinsurance factors, claims statistics, claims disputes (including how such disputes were adjudicated), and actuarial rate reviews; and that compares premium rates charged under the Program with comparable premium rates charged under the standard flood insurance policy, controlling for comparable risk factors.