§ 4081. Services by insurance industry

1,858 words·~8 min read·/usc/title-42/section-4081

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(a)Contracting for services and facilities In administering the flood insurance program under this subchapter, the Administrator is authorized to enter into any contracts, agreements, or other appropriate arrangements which may, from time to time, be necessary for the purpose of utilizing, on such terms and conditions as may be agreed upon, the facilities and services of any insurance companies or other insurers, insurance agents and brokers, or insurance adjustment organizations; and such contracts, agreements, or arrangements may include provision for payment of applicable operating costs and allowances for such facilities and services as set forth in the schedules prescribed under section 4018 of this title.

(b)Certain laws inapplicable to contracting Any such contracts, agreements, or other arrangements may be entered into without regard to the provisions of section 6101 of title 41 or any other provision of law requiring competitive bidding and without regard to the provisions of chapter 10 of title 5.

(c)Hold harmless The Administrator of the Federal Emergency Management Agency shall hold any agent or broker selling or undertaking to sell flood insurance under this chapter harmless from any judgment for damages against such agent or broker as a result of any court action by a policyholder or applicant arising out of an error or omission on the part of the Federal Emergency Management Agency, and shall provide any such agent or broker with indemnification, including court costs and reasonable attorney fees, arising out of and caused by an error or omission on the part of the Federal Emergency Management Agency and its contractors. The Administrator of the Federal Emergency Management Agency may not hold harmless or indemnify an agent or broker for his or her error or omission.

(d)FEMA authority on transfer of policies Notwithstanding any other provision of this chapter, the Administrator may, at the discretion of the Administrator, refuse to accept the transfer of the administration of policies for coverage under the flood insurance program under this chapter that are written and administered by any insurance company or other insurer, or any insurance agent or broker.

(e)Risk transfer The Administrator may secure reinsurance of coverage provided by the flood insurance program from the private reinsurance and capital markets at rates and on terms determined by the Administrator to be reasonable and appropriate, in an amount sufficient to maintain the ability of the program to pay claims.

(Pub. L. 90–448, title XIII, § 1345, Aug. 1, 1968, 82 Stat. 585; Pub. L. 97–35, title III, § 341(e), Aug. 13, 1981, 95 Stat. 419; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title V, § 574, Sept. 23, 1994, 108 Stat. 2278; Pub. L. 112–141, div. F, title II, §§ 100238(b)(1), 100245, July 6, 2012, 126 Stat. 958, 966; Pub. L. 113–89, § 10, Mar. 21, 2014, 128 Stat. 1025; Pub. L. 117–286, § 4(a)(263), Dec. 27, 2022, 136 Stat. 4334.)

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