[Congressional Record Volume 153, Number 135 (Wednesday, September 12, 2007)]
[Senate]
[Pages S11511-S11512]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COLEMAN (for himself and Ms. Klobuchar):
  S. 2047. A bill to require enhanced disclosures to consumers 
purchasing flood insurance and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. COLEMAN. Mr. President, I rise today to introduce the Flood 
Insurance Disclosure Act of 2007. I thank my Minnesota colleague, 
Senator Klobuchar, for her cosponsorship of this bill.
  Last month, the southeastern part of my State of Minnesota was the 
scene of devastating, historic flooding that claimed seven lives, 
caused widespread damage to the area's homes, businesses and 
infrastructure and disrupted the day-to-day lives of countless 
Minnesotans.
  As I traveled in the flood ravaged areas, I was troubled to hear and 
learn that only a few residents had flood insurance. Even more 
troubling were reports that some residents had been told they could not 
get flood insurance.
  One telling statistic is that in the seven Federally declared 
disaster counties, which include Olmsted and Winona counties, less than 
1 percent of all households had flood insurance. Certainly we can do 
better and must do better.

[[Page S11512]]

  In an effort to increase the number of residents with flood insurance 
and to make sure residents get the information they need about flood 
insurance, today I am introducing legislation to amend the National 
Flood Insurance Act of 1968 to require insurance companies to disclose 
noncoverage of flood insurance in homeowner's and renter's policies, as 
well as the resident's eligibility for flood insurance.
  The Federal Government long ago recognized the importance of flood 
insurance and that is why we have the National Flood Insurance Program 
which makes available, in partnership with insurance companies, flood 
insurance to households. At the end of day, flood insurance can serve 
as a financial life saver in flood disasters, while federal disaster 
assistance is, at best, a lifeline.
  At the end of the day flood insurance is really about an ounce of 
prevention being worth a pound of cure. It is my hope that through this 
legislation more Minnesotans and Americans will obtain flood insurance 
in order to protect their financial well-being in the event of a flood 
disaster.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2047

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Flood Insurance Disclosure 
     Act of 2007''.

     SEC. 2. ADDITIONAL REQUIREMENTS OF INSURERS.

       Part A of Chapter II of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4051 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 1337. ADDITIONAL REQUIREMENTS OF INSURERS.

       ``(a) Disclosure of Noncoverage.--
       ``(1) In general.--Each insurance company or other insurer 
     shall disclose, in writing, to any homeowner or renter who 
     purchases a homeowner's or renter's insurance policy from 
     such company or insurer that such policy does not include 
     flood insurance coverage as described under chapter I.
       ``(2) Placement of disclosure.--The disclosure required 
     under paragraph (1) shall be--
       ``(A) in English;
       ``(B) composed in a clear and conspicuous manner; and
       ``(C) displayed on the insurance policy described under 
     such paragraph.
       ``(b) Disclosure of Eligibility.--Each insurance company or 
     other insurer shall disclose, in writing, at the time of sale 
     of any homeowner's or renter's insurance policy to the 
     purchaser of such policy--
       ``(1) that such person may be eligible to purchase flood 
     insurance coverage as described under chapter I; and
       ``(2) the telephone number and Internet address by which 
     the purchaser can contact the National Flood Insurance 
     Program in order to obtain such flood insurance coverage.
       ``(c) Record Keeping.--Each insurance company or other 
     insurer shall keep and maintain an accurate record of each 
     disclosure provided under this section.''.
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