Sec. 404. Fees and surcharges for private flood insurance policies
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Section 1308A(a) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4015a(a) ) is amended— by striking The Administrator and inserting the following: The Administrator ; and by adding at the end the following: An insurance company that issues a policy for private flood insurance shall impose and collect an annual surcharge, in the amount provided in subsection (b), on a private flood insurance policy. The surcharge imposed under subparagraph
(A)shall be in addition to the surcharge imposed under section 1304(c) and any other assessments and surcharges applied to such coverage. Not later than 180 days after the date on which an insurance company collects a surcharge under subparagraph (A), the insurance company shall transfer the amount of the surcharge to the Administrator, who shall deposit the amount in the National Flood Insurance Fund established under section 1310. The Administrator may require the provision of such information as the Administrator decides is necessary to verify that a surcharge imposed and collected under subparagraph
(A)has been imposed and collected at the proper time and in the proper amount. No portion of the surcharge collected under subparagraph
(A)may be retained by the insurance company for the costs of collecting, handling, or remitting the surcharge except for interest accruing to the company after collection and before remittance. . Section 1307(a) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4014(a) ) is amended— in paragraph (1)(B)(iii), by striking shall be recovered by and all that follows and inserting “shall be recovered— in the case of a policy under the national flood insurance program, by a fee that— shall be charged to policyholders; and shall not be subject to any agents’ commissions, company expense allowances, or State or local premium taxes; and in the case of a private flood insurance policy, by a fee— that shall be— charged to policyholders; collected by the insurance company that issued the policy; and transferred, not later than 180 days after the date on which the fee is collected, to the Administrator, who shall deposit the amount of the fee in the National Flood Insurance Fund established under section 1310; that shall not be subject to any agents’ commissions, company expense allowances, or State or local premium taxes; and with respect to which— the Administrator may require the provision of such information as the Administrator decides is necessary to verify that the fee has been imposed and collected at the proper time and in the proper amount; and no portion may be retained by the insurance company that collected the fee for the costs of collecting, handling, or remitting the fee except for interest accruing to the company after collection and before remittance; and ; and in paragraph (2), in the matter preceding subparagraph (A), by inserting , including a fee charged to policyholders of private flood insurance in a manner that is consistent with paragraph (1)(B)(iii)(II), after policyholders . Section 102(b)(7)(C) of the Flood Disaster Protection Act of 1973 ( 42 U.S.C. 4012a(b)(7)(C) ), as amended by section 401 of this Act, is amended— in clause (ii), by striking and at the end; in clause (iii), by striking the period at the end and inserting ; and ; and by adding at the end the following: provides ordinance and law coverage that meets or exceeds increased cost of compliance coverage provided under a standard flood insurance policy under the national flood insurance program . The amendments made by subsections (a), (b), and
(c)shall apply with respect to a private flood insurance policy that is newly issued or renewed after the date of enactment of this Act. Section 1308A(a)(1) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4015a(a)(1) ), as so designated by subsection (a)(1) of this section, is amended, in the second sentence, by striking section 1304(b) and inserting section 1304(c) . Section 1310(b) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4017(b) ), as amended by section 403(c)(1)(B)(ii) of this Act, is amended— in paragraph (6), as so designated, by striking and at the end; by redesignating paragraph
(7)as paragraph (9); and by inserting after paragraph
(6)the following: surcharges collected under section 1308A(a)(2); fees collected under section 1307(a)(1)(B)(iii); and .
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Sec. 404
Fees and surcharges for private flood insurance policies
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