Sec. 1203. definitions

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## Sec. 1203 definitions **[**[12 U.S.C. 1749bbb–2](/us/usc/t12/s1749bbb–2)**]** ###

(a)When used in this title, unless the context otherwise requires, the term— ####

(1)“**affordable rate**” means premium rate as the Director determines would permit the purchase of a specific type of insurance coverage by a reasonably prudent person in similar circumstances with due regard to the costs and benefits involved; ####

(2)“**crime insurance**” means insurance against losses resulting from robbery, burglary, larceny, and similar crimes, and may include broad form personal theft insurance, mercantile open stock insurance, mercantile robbery and mercantile safe burglary insurance, storekeeping burglary and robbery insurance, office burglary and robbery insurance, and may include business interruption insurance as the Director may designate; the term does not include automobile insurance or losses resulting from embezzlement; ####

(3)“**directly insured losses**” means losses on direct insurance claims and all direct expenses incurred in connection therewith, including but not limited to expenses for processing, verifying, and paying such losses; ####

(4)“**environmental hazard**” means any hazardous condition that might give rise to loss under an insurance contract, but which is beyond the control of the property owner; ####

(5)“**essential property insurance**” means insurance against direct loss to property as defined and limited in standard fire policies and extended coverage endorsement thereon, as approved by the State insurance authority, and insurance for such types, classes, and locations of property against the perils of vandalism, malicious mischief, burglary, or theft, as the Director by rule shall designate. Such insurance shall not include automobile insurance and shall not include insurance on such types of manufacturing risks as may be excluded by the State insurance authority; ####

(6)“**inspection facility**”, with respect to any State, means any rating bureau or other person designated by the State insurance authority to perform inspections under fair access to insurance requirements plan under part A; ####

(7)“**insurer**” includes any insurance company or group of companies under common ownership which is authorized to engage in the insurance business under the laws of any State; ####

(8)“**pool**” means any pool or association of insurance companies in any State which is formed, associated, or otherwise created for the purpose of making property insurance more readily available; ####

(9)“**losses resulting from riots or civil disorders**” means losses resulting from riots or civil disorders under policies for standard lines of property insurance for which reinsurance is offered under section 1221, as determined under regulations of the Director; ####

(10)“**property owner**”, with respect to any real, personal, or mixed real and personal property, means any person having an insurable interest in such property; ####

(11)“**person**” includes any individual or group of individuals, corporation, partnership, or association, or any other organized group of persons; ####

(12)“**reinsured losses**” means losses on reinsurance claims and all direct expenses incurred in connection therewith including, but not limited to, expenses for processing, verifying, and paying such losses; ####

(13)“**standard line of property insurance**” includes— #####

(A)fire and extended coverage; #####

(B)vandalism and malicious mischief; #####

(C)other allied lines of fire insurance; #####

(D)burglary and theft; #####

(E)those portions of multiple peril policies covering perils similar to those provided for in subparagraphs (A), (B), (C), and (D); #####

(F)inland marine; #####

(G)glass; #####

(H)boiler and machinery; #####

(I)ocean marine; #####

(J)aircraft physical damage; and #####

(K)such other lines generally offered to the public which include protection against damage from riot or civil commotion as the Director by regulation may designate; ####

(14)“**State**” means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions, and the Trust Territory of the Pacific Islands; ####

(15)“**urban area**” includes any municipality or other political subdivision of a State, subject to population or other limitations defined in rules and regulations of the Director and such additional areas as may be designated by the State insurance authority; ####

(16)“**year**” means a calendar year, fiscal year of a company, or such other period of twelve months as may be designated by the Director; and ####

(17)“**Director**” means the Director of the Federal Emergency Management Agency. ###

(b)The Director is authorized to define, by rules and regulations, any technical or trade term, insofar as such definition is not inconsistent with the provisions of this title ### Part A Statewide Plans to Assure Fair Access to Insurance Requirements

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12 USC 1749bbb–2

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Sec. 1203

definitions

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