[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1091 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1091

 To amend the National Flood Insurance Act of 1968 to include a system 
    for indeterminate loss insurance claims, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 26, 2011

  Mr. Wicker introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the National Flood Insurance Act of 1968 to include a system 
    for indeterminate loss insurance claims, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
                          TITLE I--COASTAL ACT

Sec. 101. Short title.
Sec. 102. Assessing and modeling named storms over coastal lands.
Sec. 103. Alternative loss allocation system for indeterminate claims.
               TITLE II--FLOOD INSURANCE REAUTHORIZATION

Sec. 201. Short title.
Sec. 202. Extensions.
Sec. 203. Reform of premium rates for newly insured and lapsed 
                            policies.
Sec. 204. Premium rate adjustment for current policyholders.
Sec. 205. State chartered financial institutions.
Sec. 206. Enforcement.
Sec. 207. Escrow of flood insurance payments.
Sec. 208. Removal of limitation on State contributions for updating 
                            flood maps.
Sec. 209. Notice of flood insurance availability under RESPA.
Sec. 210. Reiteration of FEMA responsibilities under the 2004 Reform 
                            Act.

                          TITLE I--COASTAL ACT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Consumer Option for an Alternative 
System To Allocate Losses Act of 2011'' or the ``COASTAL Act of 2011''.

SEC. 102. ASSESSING AND MODELING NAMED STORMS OVER COASTAL LANDS.

    Subtitle C of title XII of the Omnibus Public Land Management Act 
of 2009 (33 U.S.C. 3601 et seq.) (also known as the ``Integrated 
Coastal and Ocean Observation System Act of 2009'') is amended by 
adding at the end the following:

``SEC. 12312. ASSESSING AND MODELING NAMED STORMS OVER COASTAL LANDS.

    ``(a) Definitions.--In this section:
            ``(1) Coastal waters.--The term `coastal waters' has the 
        meaning given the term in section 304 of the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1453).
            ``(2) Coastal zone.--The term `coastal zone'--
                    ``(A) means the shorelands adjacent to coastal 
                waters; and
                    ``(B) includes lands for which States have 
                developed a management program as such term is defined 
                in such section 304 (16 U.S.C. 1453).
            ``(3) Covered data.--The term `covered data' means, with 
        respect to a named storm in the coastal zone, empirical data 
        that are--
                    ``(A) collected before, during, or after such storm 
                in coastal waters and in the coastal zone; and
                    ``(B) necessary to determine magnitude and timing 
                of wind speeds, the barometric pressure, river flows, 
                the extent, height, and timing of storm surge, 
                topographic and bathymetric data, and other measures 
                required to accurately model and assess damage from 
                such storm.
            ``(4) Named storm.--The term `named storm' means any 
        organized weather system with a defined surface circulation and 
        maximum winds of at least 39 miles per hour which the National 
        Hurricane Center of the United States National Weather Service 
        names as a tropical storm, or a hurricane, that threatens any 
        portion of the coastal zone.
            ``(5) Named storm event model.--The term `Named Storm Event 
        Model' means the official meteorological and oceanographic 
        computerized model, developed by the Administrator under 
        subsection (b)(1)(A), which utilizes covered data to replicate 
        the magnitude, timing, and spatial variations of winds and 
        storm surges associated with named storms in the coastal zone.
            ``(6) Participant.--The term `participant' means a Federal, 
        State, or private entity that chooses to cooperate with the 
        Administrator in carrying out the provisions of this section by 
        collecting, contributing, and maintaining covered data.
            ``(7) Post-event assessment.--The term `post-event 
        assessment' means a scientific assessment produced and 
        certified by the Administrator to determine the magnitude, 
        timing, and spatial variations of winds and storm surges 
        associated with a specific named storm to be used in the loss 
        allocation formula established by the Secretary of Homeland 
        Security under section 1333(b)(2) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4053(b)(2)).
            ``(8) State.--The term `State' means each of the several 
        States of the United States or the District of Columbia.
    ``(b) Named Storm Event Model and Post-event Assessment.--
            ``(1) Establishment of named storm event model.--
                    ``(A) In general.--Not later than 540 days after 
                the date of the enactment of the COASTAL Act of 2011, 
                the Administrator shall develop by regulation and 
                employ a generalized assessment model for determining 
                the magnitude and temporal and spatial variations of 
                storm surges and wind speeds associated with named 
                storms.
                    ``(B) Designation.--The model developed and 
                employed under subparagraph (A) shall be known as the 
                `Named Storm Event Model'.
                    ``(C) Accuracy.--The Named Storm Event Model shall 
                be designed to generate post-event assessments, as 
                provided in paragraph (2), that have a degree of 
                accuracy of not less than 90 percent for every 
                indeterminate loss for which a post-event assessment is 
                utilized.
            ``(2) Post-event assessment.--
                    ``(A) Identification of named storms threatening 
                coastal zone.--After the establishment of the loss 
                allocation formula under section 1333(b)(2) of the 
                National Flood Insurance Act of 1968 (42 U.S.C. 
                4053(b)(2)), the Administrator shall, in consultation 
                with the Secretary of Homeland Security, identify named 
                storms that may reasonably constitute a threat to any 
                portion of the coastal zone.
                    ``(B) Post-event assessment required.--Upon 
                identification of a named storm under subparagraph (A), 
                the Administrator shall develop a post-event assessment 
                for such named storm using the Named Storm Event Model 
                and covered data collected for such named storm 
                pursuant to the protocol established under subsection 
                (c)(1).
                    ``(C) Submittal of post-event assessment.--Not 
                later than 90 days after an identification of a named 
                storm is made under subparagraph (A), the Administrator 
                shall submit to the Secretary of Homeland Security the 
                post-event assessment developed for such storm under 
                subparagraph (B).
            ``(3) Accuracy.--The Administrator shall ensure, to the 
        greatest extent practicable, that each post-event assessment 
        developed under paragraph (2) has a degree of accuracy of not 
        less than 90 percent.
            ``(4) Certification.--For each post-event assessment, the 
        Administrator shall--
                    ``(A) certify the degree of accuracy for such 
                assessment, including specific reference to any 
                segments or geographic areas for which the assessment 
                is less than 90 percent accurate; and
                    ``(B) report such certification to the Secretary of 
                Homeland Security for the purposes of settling 
                indeterminate loss claims under section 3(c)(1) of the 
                COASTAL Act of 2011.
            ``(5) Finality of determinations.--A certification of, or 
        determination not to certify, the degree of accuracy of a post-
        event assessment under this subsection by the Administrator 
        shall be final and shall not be subject to judicial review.
            ``(6) Availability.--The Administrator shall make available 
        to the public the Named Storm Event Model and any post-event 
        assessment developed under this subsection.
    ``(c) Establishment of a Protocol for Post-Event Assessment.--
            ``(1) In general.--Not later than 540 days after the date 
        of the enactment of the COASTAL Act of 2011, the Administrator 
        shall establish a protocol, based on the plan submitted under 
        subsection (d)(3), to collect and assemble all covered data 
        required by the Administrator to produce post-event assessments 
        required by subsection (b), including assembling data collected 
        by participants and stored in the database established under 
        subsection (f) and from such other sources as the Administrator 
        considers appropriate.
            ``(2) Acquisition of sensors and structures.--If the 
        Administrator is unable to use a public or private asset to 
        obtain covered data as part of the protocol established under 
        paragraph (1), the Administrator may acquire such sensors and 
        structures for the placement of sensors as may be necessary to 
        obtain such data.
            ``(3) Use of federal assets.--If the protocol requires 
        placement of a sensor to develop assessments pursuant to 
        subsection (b), the Administrator shall, to the extent 
        practicable, use Federal assets for the placement of such 
        sensors.
            ``(4) Use of acquired structures.--
                    ``(A) In general.--If the Administrator acquires a 
                structure for the placement of a sensor for purposes of 
                such protocol, the Administrator shall to the extent 
                practical permit other public and private entities to 
                place sensors on such structure to collect--
                            ``(i) meteorological data;
                            ``(ii) national security-related data;
                            ``(iii) navigation-related data;
                            ``(iv) hydrographic data; or
                            ``(v) such other data as the Administrator 
                        considers appropriate.
                    ``(B) Receipt of consideration.--The Administrator 
                may receive consideration for the placement of a sensor 
                on a structure under subparagraph (A).
                    ``(C) In-kind consideration.--Consideration 
                received under subparagraph (B) may be received in-
                kind.
                    ``(D) Use of consideration.--To the extent 
                practicable, consideration received under subparagraph 
                (B) shall be used for the maintenance of sensors used 
                to collect covered data.
            ``(5) Coordinated deployments and data collection 
        practices.--The Administrator shall, in consultation with the 
        Office of the Federal Coordinator for Meteorology, coordinate 
        the deployment of sensors as part of the protocol established 
        under paragraph (1) and related data collection carried out by 
        Federal, State, academic, and private entities who choose to 
        cooperate with the Administrator in carrying out this 
        subsection.
            ``(6) Priority acquisition and deployment.--The 
        Administrator shall give priority in the acquisition for and 
        deployment of sensors under the protocol required by paragraph 
        (1) to areas of the coastal zone that have the highest risk of 
        being harmed by named storms.
    ``(d) Assessment of Systems and Efforts To Collect Covered Data.--
            ``(1) Identification of systems and efforts to collect 
        covered data.--Not later than 180 days after the date of the 
        enactment of the COASTAL Act of 2011, the Administrator shall, 
        in consultation with the Office of the Federal Coordinator for 
        Meteorology--
                    ``(A) carry out a survey to identify all Federal 
                and State efforts and systems that are capable of 
                collecting covered data; and
                    ``(B) work with private and academic sector 
                entities to identify domestic private and academic 
                systems that are capable of collecting covered data.
            ``(2) Identification of gaps.--The Administrator shall, in 
        consultation with the Office of the Federal Coordinator for 
        Meteorology and individuals and entities consulted under 
        subsection (e)(3), assess the systems identified under 
        paragraph (1) and identify which systems meet the needs of the 
        National Oceanic and Atmospheric Administration for the 
        collection of covered data, including with respect to the 
        accuracy requirement for post-event assessment under subsection 
        (b)(3).
            ``(3) Plan.--Not later than 270 days after the date of the 
        enactment of the COASTAL Act of 2011, the Administrator shall, 
        in consultation with the Office of the Federal Coordinator for 
        Meteorology, submit to Congress a plan for the collection of 
        covered data necessary to develop the Named Storm Event Model 
        and post-event assessment required by subsection (b) that 
        addresses any gaps identified in paragraph (2).
    ``(e) Coordination of Covered Data Collection and Maintenance by 
Participants.--
            ``(1) In general.--The Administrator shall, in consultation 
        with the Office of the Federal Coordinator for Meteorology, 
        coordinate the collection and maintenance of covered data by 
        participants under this section--
                    ``(A) to streamline the process of collecting 
                covered data in accordance with the protocol 
                established under subsection (c)(1); and
                    ``(B) to maintain transparency of such process and 
                the database established under subsection (f).
            ``(2) Sharing information.--The Administrator shall 
        establish a process for sharing among participants information 
        relevant to collecting and using covered data for--
                    ``(A) academic research;
                    ``(B) private sector use;
                    ``(C) public outreach; and
                    ``(D) such other purposes as the Administrator 
                considers appropriate.
            ``(3) Consultation.--In carrying out paragraphs (1) and 
        (2), the Administrator shall consult with the following:
                    ``(A) The Commanding General of the United States 
                Army Corps of Engineers.
                    ``(B) The Administrator of the Federal Emergency 
                Management Agency.
                    ``(C) The Commandant of the Coast Guard.
                    ``(D) The Director of the United States Geological 
                Survey.
                    ``(E) The Office of the Federal Coordinator for 
                Meteorology.
                    ``(F) The Director of the National Science 
                Foundation.
                    ``(G) The Administrator of the National Aeronautics 
                and Space Administration.
                    ``(H) Such public, private, and academic sector 
                entities as the Administrator considers appropriate for 
                purposes of carrying out the provisions of this 
                section.
    ``(f) Establishment of Coastal Wind and Water Event Database.--
            ``(1) In general.--Not later than 365 days after the date 
        of the enactment of the COASTAL Act of 2011, the Administrator 
        shall establish a database for the collection and compilation 
        of covered data--
                    ``(A) to support the protocol established under 
                subsection (c)(1); and
                    ``(B) for the purposes listed in subsection (e)(2).
            ``(2) Designation.--The database established under 
        paragraph (1) shall be known as the `Coastal Wind and Water 
        Event Database'.
    ``(g) Comptroller General Study.--Not later than 365 days after the 
date of the enactment of the COASTAL Act of 2011, the Comptroller 
General of the United States shall--
            ``(1) complete an audit of Federal efforts to collect 
        covered data, which audit shall--
                    ``(A) examine duplicated Federal efforts to collect 
                covered data; and
                    ``(B) determine the cost effectiveness of such 
                efforts; and
            ``(2) submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Science, 
        Space, and Technology of the House of Representatives a report 
        on the findings of the Comptroller General with respect to the 
        audit completed under paragraph (1).''.

SEC. 103. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE CLAIMS.

    Section 1333 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4053) is amended--
     (a) by striking ``The insurance companies'' and inserting ``(a) In 
General.--The insurance companies''; and
    (b) by adding at the end the following:
    ``(b) Alternative Loss Allocation System for Indeterminate 
Claims.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Indeterminate loss.--
                            ``(i) In general.--The term `indeterminate 
                        loss' means, as determined by an insurance 
                        claims adjuster, a loss resulting from physical 
                        damage to or loss of property related thereto 
                        located in any State arising from the combined 
                        perils of flood and wind associated with a 
                        named storm.
                            ``(ii) Requirements.--An insurance claims 
                        adjuster shall only determine that a loss is an 
                        indeterminate loss if the claims adjuster 
                        determines that--
                                    ``(I) no material remnant of 
                                physical buildings or man-made 
                                structures remain except building 
                                foundations for the specific property 
                                for which the indeterminate claim is 
                                made; and
                                    ``(II) there is insufficient or no 
                                tangible evidence created, yielded, or 
                                otherwise left behind as a result of 
                                the named storm.
                            ``(iii) Resolution of disputes regarding 
                        indeterminate loss determinations.--For any 
                        determination of, or determination not to 
                        qualify, a loss as an indeterminate loss by an 
                        insurance claims adjuster, or any dispute 
                        between a policyholder and an insurance claims 
                        adjuster regarding such a determination, or any 
                        dispute between insurance claims adjusters 
                        regarding such a determination, the 
                        policyholder or insurer may, not later than 30 
                        days after receiving notice of such 
                        determination, file an appeal with the 
                        arbitration panel established under paragraph 
                        (6).
                            ``(iv) Civil penalty.--In carrying out any 
                        determination relating to an indeterminate 
                        loss, any insurance claims adjuster that 
                        knowingly and willfully makes a false or 
                        inaccurate determination shall be subject to a 
                        civil penalty in an amount not to exceed 
                        $10,000.
                    ``(B) Named storm.--The term `named storm' has the 
                meaning given the term in section 12312(a) of the 
                Omnibus Public Land Management Act of 2009.
                    ``(C) Property.--The term `property' means real or 
                personal property that is insured under a standard 
                insurance policy for loss or damage to structure and 
                contents.
                    ``(D) Secretary.--The term `Secretary' means the 
                Secretary of Homeland Security.
                    ``(E) Standard insurance policy.--The term 
                `standard insurance policy' means any insurance policy 
                that covers loss or damage to an insured structure or 
                contents resulting from wind peril (including a State 
                wind pool), water peril (including insurance provided 
                under this title and private insurance that covers 
                water peril), or both wind and water perils.
                    ``(F) State wind pool.--The term `State wind pool' 
                means an entity sponsored, run, or controlled by a 
                State for the purposes of selling wind insurance in a 
                standard insurance policy.
                    ``(G) Under secretary.--The term `Under Secretary' 
                means the Under Secretary for Oceans and Atmosphere.
            ``(2) Establishment of loss allocation formula.--
                    ``(A) In general.--Not later than 180 days after 
                the establishment of the protocol established in 
                subsection (c)(1) of section 12312 of the Omnibus 
                Public Land Management Act of 2009, the Secretary 
                shall, in consultation with the Under Secretary, 
                establish by rule a system for allocating losses 
                among--
                            ``(i) any insurer (including a State wind 
                        pool) that insures losses due to wind peril, or 
                        both wind and water peril; and
                            ``(ii) any insurer (including the Federal 
                        Emergency Management Agency and NFIP Direct) 
                        issuing a standard insurance policy that 
                        insures losses due to water peril for 
                        properties that may also be insured against 
                        losses caused by wind peril through another 
                        insurer, solely with respect to the amount of 
                        losses due to flood insured under this title.
                    ``(B) Use of post-event assessment.--The loss 
                allocation system established under subparagraph (A) 
                shall--
                            ``(i) incorporate data available from the 
                        Coastal Wind and Water Event Database 
                        established under subsection (f) of section 
                        12312 of the Omnibus Public Land Management Act 
                        of 2009; and
                            ``(ii) for each indeterminate loss, utilize 
                        the post-event assessment developed under 
                        subsection (b)(2) of such section 12312, to 
                        allocate water damage (flood or storm surge), 
                        associated with a named storm, and wind damage 
                        associated with the same named storm if the 
                        Under Secretary certifies such post-event 
                        assessment as having a degree of accuracy of 
                        not less than 90 percent in connection with the 
                        specific indeterminate loss for which such 
                        assessment is utilized.
                    ``(C) Application of post-event assessment.--In 
                applying the post-event assessment developed under 
                subsection (b)(2) of section 12312 of the Omnibus 
                Public Land Management Act of 2009 in accordance with 
                subparagraph (B), the Secretary shall develop a 
                standard formula to determine the loss allocation for a 
                specific property. Such formula shall consider--
                            ``(i) relevant data provided on the FEMA 
                        Elevation Certificate for each indeterminate 
                        loss determined under this subsection;
                            ``(ii) any sufficient and credible 
                        evidence, approved by the Secretary, of the 
                        pre-event condition of a specific property, 
                        including the findings of any policyholder or 
                        insurance claims adjuster in connection with 
                        the indeterminate loss to that specific 
                        property; and
                            ``(iii) other measures required to 
                        determine and allocate, by mathematical 
                        formula, property damage caused by wind and 
                        property damage caused by water associated with 
                        the same named storm.
                    ``(D) Consultation.--In carrying out subparagraph 
                (A), the Secretary shall consult with the following:
                            ``(i) The Director of the National 
                        Institute of Standards and Technology.
                            ``(ii) Such public, private, and academic 
                        sector entities as the Secretary considers 
                        appropriate for purposes of carrying out 
                        provisions of such paragraph.
                    ``(E) Requirement.--Each consideration and measure 
                the Secretary determines necessary to carry out the 
                requirements of subparagraph (A), pursuant to 
                subparagraph (C), shall be provided for on the National 
                Flood Insurance Program Elevation Certificate, or 
                maintained otherwise on record if approved by the 
                Secretary, for any properties that qualify for the 
                alternative loss allocation for indeterminate losses 
                under this subsection.
                    ``(F) Administrative procedure.--The loss 
                allocation system established under subparagraph (A) 
                shall be promulgated by rule in accordance with section 
                553 of title 5, United States Code.
            ``(3) Allocation of indeterminate claims.--For each 
        indeterminate loss--
                    ``(A) any insurer (including the Federal Emergency 
                Management Agency and NFIP Direct) issuing a standard 
                insurance policy that insures losses due to water peril 
                for properties that may also be insured against losses 
                caused by wind peril through another insurer, solely 
                with respect to the amount of losses due to flood 
                insured under this title, shall allocate payments to 
                policyholders in accordance with the method or methods 
                established by the Secretary pursuant to paragraph 
                (2)(A);
                    ``(B) any insurer required to allocate losses due 
                to flood under subparagraph (A) that also insures 
                losses due to wind peril under a standard insurance 
                policy shall, with respect to any property for which it 
                issues both flood and wind coverage, allocate payments 
                to policyholders for losses due to wind peril in 
                accordance with the method or methods established by 
                the Secretary pursuant to paragraph 2(A);
                    ``(C) any insurer that utilizes the services of 
                insurance agents who--
                            ``(i) work exclusively or predominately for 
                        that insurer, and
                            ``(ii) service flood insurance business 
                        directly through the National Flood Insurance 
                        Program Servicing Agent,
                shall allocate payments to policyholders that purchase 
                flood coverage through such agents in accordance with 
                the method or methods established by the Secretary 
                pursuant to paragraph (2)(A);
                    ``(D) all other insurers may elect to allocate 
                losses to policyholders in accordance with the system 
                established by the Secretary pursuant to paragraph 
                (2)(A) if--
                            ``(i) such election is made by an insurer 
                        prior to the time of purchase or renewal of the 
                        applicable policy by the policy holder; and
                            ``(ii) the policyholder is given notice of 
                        such election by the insurer; and
                    ``(E) the amount of any claim settled by any 
                insurer of a standard insurance policy with regard to 
                an allocation of payments made pursuant to 
                subparagraphs (A), (B), (C), or (D) shall be final and 
                not subject to judicial review.
            ``(4) Appeal of loss allocation determination.--
                    ``(A) In general.--If a policyholder or an insurer 
                of a standard insurance policy participating in the 
                loss allocation system established under paragraph (2) 
                is unsatisfied with the allocation of losses made 
                pursuant to subparagraphs (A), (B), (C), or (D) of 
                paragraph (3), due to sufficient and credible evidence 
                not considered in such allocation of losses, the 
                policyholder or insurer may, not later than 30 days 
                after receiving notice of such allocation, file an 
                appeal with the arbitration panel established under 
                paragraph (6).
                    ``(B) Limitation.--An appeal filed under 
                subparagraph (A) may only be filed with respect to the 
                amount of any claim determined pursuant to this 
                subsection, and no appeal shall be heard or accepted 
                with respect to the validity, efficacy, applicability, 
                or use of the loss allocation formula established under 
                paragraph (2).
            ``(5) Loss allocation and payment of policyholder claims 
        prior to determination.--
                    ``(A) Good faith allocations.--Nothing in this 
                subsection shall be construed to prohibit an insurer 
                (including a State wind pool) from--
                            ``(i) allocating losses in good faith with 
                        respect to a specific property prior to the 
                        determination of the indeterminate loss 
                        allocation for such property under this 
                        subsection;
                            ``(ii) paying policyholder claims for 
                        losses to such property based on the good faith 
                        allocation under clause (i), provided that such 
                        payment does not exceed the lowest coverage 
                        limit amount for a loss under the standard 
                        insurance policy of the policyholder; and
                            ``(iii) immediately after the determination 
                        of the indeterminate loss allocation for such 
                        property under this subsection reconciling 
                        amounts paid to the policyholder to conform 
                        with such indeterminate loss allocation 
                        determination.
                    ``(B) Settlement of claims not determined to be 
                indeterminate losses.--
                            ``(i) In general.--If a claim with respect 
                        to a specific property is settled by an insurer 
                        (including a State wind pool or an insurer of a 
                        standard insurance policy) pursuant to 
                        subparagraph (A), and it is later determined 
                        the specific property does not qualify for the 
                        loss allocation formula pursuant to this 
                        subsection, the insurer and the Secretary shall 
                        work in good faith to settle the claim.
                            ``(ii) Resolution of disputes.--If during 
                        the process of settling a claim under clause 
                        (i) there arises a dispute between any of the 
                        parties involved in that claim, any such party 
                        may file an action to have such dispute settled 
                        by the arbitration panel established under 
                        paragraph (6).
            ``(6) Arbitration panel.--
                    ``(A) Establishment.--The Administrator of the 
                Federal Emergency Management Agency shall establish an 
                arbitration panel to efficiently and clearly resolve--
                            ``(i) appeals relating to the loss 
                        allocation system for resolving indeterminate 
                        claims established under this subsection; and
                            ``(ii) any other actions brought to the 
                        panel pursuant to this subsection.
                    ``(B) Membership.--The arbitration panel 
                established under subparagraph (A) shall be comprised 
                of 5 members.
                    ``(C) Administrative law expertise required.--At 
                least 1 member of the arbitration panel established 
                under subparagraph (A) shall have expertise in 
                administrative law.
                    ``(D) No fema employees.--No member of the 
                arbitration panel established under subparagraph (A) 
                may be a current employee of the Federal Emergency 
                Management Agency.
                    ``(E) Independence.--Each member of the arbitration 
                panel established under subparagraph (A) shall be 
                independent and neutral.
            ``(7) Opt-out.--After the date of enactment of this 
        subsection, and only after the occurrence of a named storm, if 
        there is mutual agreement between an insurer and its insured 
        policyholder, such parties may elect to opt out of the 
        requirements of this subsection, provided that the document or 
        form used to represent such agreement is approved in advance by 
        the Secretary.
            ``(8) Opt-in.--Nothing in this subsection shall be 
        construed to prevent or prohibit an insurer (including a State 
        wind pool or an insurer of a standard insurance policy) from 
        allocating all losses associated with a named storm pursuant to 
        the requirements of this subsection.
            ``(9) Rule of construction.--Nothing in this subsection 
        shall be construed to negate, set aside, or void any policy 
        limit, including any loss limitation, set forth in a standard 
        insurance policy (including such policies covering wind and 
        water, State wind pool, and any insurance policy provided in 
        accordance with this title).
            ``(10) Applicability.--Paragraph (3) shall apply with 
        respect to named storms that occur after the establishment of 
        the indeterminate loss allocation formula pursuant to paragraph 
        (2).''.

               TITLE II--FLOOD INSURANCE REAUTHORIZATION

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Flood Insurance Reauthorization 
Act of 2011''.

SEC. 202. EXTENSIONS.

    (a) Extension of Program.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2011'' and inserting ``September 30, 2016''.
    (b) Extension of Financing.--Section 1309(a) of such Act (42 U.S.C. 
4016(a)) is amended by striking ``September 30, 2011'' and inserting 
``September 30, 2016''.

SEC. 203. REFORM OF PREMIUM RATES FOR NEWLY INSURED AND LAPSED 
              POLICIES.

    (a) In General.--Section 1307 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4014) is amended by adding at the end the following:
    ``(g) No Extension of Subsidy to New Policies or Lapsed Policies.--
The Director shall not provide flood insurance to prospective insureds 
at rates less than those estimated under subsection (a)(1), as required 
by paragraph (2) of that subsection, for--
            ``(1) any property not insured by the flood insurance 
        program as of the date of enactment of the Flood Insurance 
        Reauthorization Act of 2011; and
            ``(2) any policy under the flood insurance program that has 
        lapsed in coverage, as a result of the deliberate choice of the 
        holder of such policy.''.
    (b) Effective Date.--The amendment made by paragraph (1) shall 
become effective 90 days after the date of the enactment of this title.

SEC. 204. PREMIUM RATE ADJUSTMENT FOR CURRENT POLICYHOLDERS.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended by adding at the end the following:
    ``(g) Premium Adjustment To Reflect Current Risk of Flood.--
Notwithstanding subsection (f), and upon completion of the updating of 
any flood insurance rate map under this Act or the Flood Disaster 
Protection Act of 1973, any property located in an area that is 
participating in the national flood insurance program shall have the 
risk premium rate charged for flood insurance on such property adjusted 
to accurately reflect the current risk of flood to such property, 
subject to any other provision of this Act. Any increase in the risk 
premium rate charged for flood insurance on any property that is 
covered by a flood insurance policy on the date of completion of such 
updating or remapping that is a result of such updating or remapping 
shall be phased in over a 5-year period at the rate of 20 percent per 
year.''.

SEC. 205. STATE CHARTERED FINANCIAL INSTITUTIONS.

    Section 1305(c) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4012(c)) is amended--
            (1) in paragraph (1), by striking ``; and'' and inserting a 
        semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) given satisfactory assurance that by December 31, 
        2012, lending institutions chartered by a State, and not 
        insured by the Federal Deposit Insurance Corporation or by the 
        National Credit Union Share Insurance Fund administered by the 
        National Credit Union Administration, shall be subject to 
        regulations by that State that are consistent with the 
        requirements of section 102 of the Flood Disaster Protection 
        Act of 1973 (42 U.S.C. 4012a).''.

SEC. 206. ENFORCEMENT.

    Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(f)(5)) is amended--
            (1) in the first sentence, by striking ``$350'' and 
        inserting ``$2,000''; and
            (2) by striking the second sentence.

SEC. 207. ESCROW OF FLOOD INSURANCE PAYMENTS.

    (a) In General.--Section 102(d) of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a(d)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Regulated lending institutions.--
                    ``(A) Federal entities responsible for lending 
                regulations.--Each Federal entity for lending 
                regulation (after consultation and coordination with 
                the Federal Financial Institutions Examination Council) 
                shall, by regulation, direct that any premiums and fees 
                for flood insurance under the National Flood Insurance 
                Act of 1968, on any property for which a loan has been 
                made for acquisition or construction purposes, shall be 
                paid to the mortgage lender, with the same frequency as 
                payments on the loan are made, for the duration of the 
                loan. Upon receipt of any premiums or fees, the lender 
                shall deposit such premiums and fees in an escrow 
                account on behalf of the borrower. Upon receipt of a 
                notice from the Director or the provider of the flood 
                insurance that insurance premiums are due, the 
                remaining balance of an escrow account shall be paid to 
                the provider of the flood insurance.
                    ``(B) State entities responsible for lending 
                regulations.--In order to continue to participate in 
                the flood insurance program, each State shall direct 
                that its entity or agency with primary responsibility 
                for the supervision of lending institutions in that 
                State require that premiums and fees for flood 
                insurance under the National Flood Insurance Act of 
                1968, on any property for which a loan has been made 
                for acquisition or construction purposes shall be paid 
                to the mortgage lender, with the same frequency as 
                payments on the loan are made, for the duration of the 
                loan. Upon receipt of any premiums or fees, the lender 
                shall deposit such premiums and fees in an escrow 
                account on behalf of the borrower. Upon receipt of a 
                notice from such State entity or agency, the Director, 
                or the provider of the flood insurance that insurance 
                premiums are due, the remaining balance of an escrow 
                account shall be paid to the provider of the flood 
                insurance.''; and
            (2) by adding at the end the following:
            ``(6) Notice upon loan termination.--Upon final payment of 
        the mortgage, a regulated lending institution shall provide 
        notice to the policyholder that insurance coverage may cease 
        with such final payment. The regulated lending institution 
        shall also provide direction as to how the homeowner may 
        continue flood insurance coverage after the life of the 
        loan.''.
    (b) Applicability.--The amendment made by subsection (a)(1) shall 
apply to any mortgage outstanding or entered into on or after the 
expiration of the 2-year period beginning on the date of enactment of 
this title.

SEC. 208. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR UPDATING 
              FLOOD MAPS.

    Section 1360(f)(2) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(f)(2)) is amended by striking ``, but which may not exceed 
50 percent of the cost of carrying out the requested revision or 
update''.

SEC. 209. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

    Section 5(b) of the Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2604(b)), as amended by section 1450 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Public Law 11-203; 124 Stat. 
2174), is amended by inserting the following after paragraph (13):
            ``(14) An explanation of flood insurance and the 
        availability of flood insurance under the National Flood 
        Insurance Program, whether or not the real estate is located in 
        an area having special flood hazards.''.

SEC. 210. REITERATION OF FEMA RESPONSIBILITIES UNDER THE 2004 REFORM 
              ACT.

    (a) Minimum Training and Education Requirements.--The Administrator 
of the Federal Emergency Management Agency shall continue to work with 
the insurance industry, State insurance regulators, and other 
interested parties to implement the minimum training and education 
standards for all insurance agents who sell flood insurance policies, 
as such standards were determined by the Administrator in the notice 
published in the Federal Register on September 1, 2005 (70 Fed. Reg. 
52117), pursuant to section 207 of the Bunning-Bereuter-Blumenauer 
Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note).
    (b) Report on the Overall Implementation of the Reform Act of 
2004.--Not later than 3 months after the date of the enactment of this 
title, the Administrator of the Federal Emergency Management Agency 
shall submit a report to Congress--
            (1) describing the implementation of each provision of the 
        Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
        (Public Law 108-264; 118 Stat. 712);
            (2) identifying each regulation, order, notice, and other 
        material issued by the Administrator in implementing each 
        provision of that Act;
            (3) explaining any statutory or implied deadlines that have 
        not been met; and
            (4) providing an estimate of when the requirements of such 
        missed deadlines will be fulfilled.
                                 <all>