Sec. 5. REQUIREMENTS REGARDING ANNUAL RATE INCREASES
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/statute-compilations/comps-10876/sec-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
## SEC. 5 REQUIREMENTS REGARDING ANNUAL RATE INCREASES Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended— ####
(1)in the matter preceding paragraph (1), by striking “, the chargeable risk premium rates for flood insurance under this title for any properties”; ####
(2)in paragraph (1), by inserting “the chargeable risk premium rates for flood insurance under this title for any properties” before “within any”; ####
(3)in paragraph (2), by inserting “the chargeable risk premium rates for flood insurance under this title for any properties” before “described in”; ####
(4)by redesignating paragraphs
(1)and (2), as so amended, as paragraphs
(3)and (4), respectively; and ####
(5)by inserting before paragraph (3), as so redesignated, the following new paragraphs: > > #### “(1) > > the chargeable risk premium rate for flood insurance under this title for any property may not be increased by more than 18 percent each year, except— > > > ##### “(A) > > as provided in paragraph (4); > > > ##### “(B) > > in the case of property identified under section 1307(g); or > > > ##### “(C) > > in the case of a property that— > > > ###### “(i) > > is located in a community that has experienced a rating downgrade under the community rating system program carried out under section 1315(b); > > > ###### “(ii) > > is covered by a policy with respect to which the policyholder has— > > > ###### “(I) > > decreased the amount of the deductible; or > > > ###### “(II) > > increased the amount of coverage; or > > > ###### “(iii) > > was misrated; > > > #### “(2) > > the chargeable risk premium rates for flood insurance under this title for any properties initially rated under section 1307(a)(2) within any single risk classification, excluding properties for which the chargeable risk premium rate is not less than the applicable estimated risk premium rate under section 1307(a)(1), shall be increased by an amount that results in an average of such rate increases for properties within the risk classification during any 12-month period of not less than 5 percent of the average of the risk premium rates for such properties within the risk classification upon the commencement of such 12-month period;” > ; ####
(6)in paragraph
(3)(as so redesignated by paragraph
(4)of this section), by striking “20 percent” and inserting “15 percent”; and ####
(7)in paragraph
(4)(as so redesignated) by paragraph
(4)of this section), by striking “paragraph (1)” and inserting “paragraph (3)”.
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Sec. 5
REQUIREMENTS REGARDING ANNUAL RATE INCREASES
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