[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12628]


[[Page Unknown]]

[Federal Register: May 24, 1994]


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FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 61

RIN 3067-AC24

 

National Flood Insurance Program; Insurance Rates

AGENCY: Federal Insurance Administration, FEMA.

ACTION: Final rule.

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SUMMARY: This final rule increases the National Flood Insurance Program 
(NFIP) chargeable (subsidized) rates, which apply to all structures 
located in communities participating in the Emergency Program of the 
NFIP and to certain structures in communities in the Regular Program of 
the NFIP. The rule is to help the NFIP satisfy the premium requirements 
for the historical average loss year and to reduce the general 
taxpayers' burden with a more equitable sharing of the costs of flood 
losses between general taxpayers and the insureds.

EFFECTIVE DATE: October 1, 1994.

FOR FURTHER INFORMATION CONTACT: Charles M. Plaxico, Federal Emergency 
Management Agency, Federal Insurance Administration, 500 C Street, SW., 
Washington, DC 20472, (202) 646-3422.

SUPPLEMENTARY INFORMATION: On March 21, 1994, the Federal Emergency 
Management Agency (FEMA) published in the Federal Register (Vol. 59, 
Page 13298) a proposed rule to increase the chargeable (subsidized) 
rates. The chargeable (subsidized) rates, for which an increase was 
proposed, are the rates applicable to structures located in communities 
participating in the Emergency Program of the NFIP and to certain 
structures in communities in the Regular Program of the NFIP. They are 
countrywide rates for two broad building type classifications which, 
when applied to the amount of insurance purchased and added to the 
expense constant and Federal policy fee, produce a premium income 
somewhat less than the expense and loss payments incurred on the flood 
insurance policies issued on that basis. The funds needed to supplement 
the inadequate premium income are provided by the National Flood 
Insurance Fund. The subsidized rates are promulgated by the 
Administrator for use under the Emergency Program (added to the NFIP by 
the Congress in Section 408 of the Housing and Urban Development Act of 
1969) and for use in the Regular Program on construction or substantial 
improvements started before the effective date of the initial Flood 
Insurance Rate Map (FIRM) or on or before December 31, 1974 (this 
additional grandfathering was added to the NFIP by Congress in section 
103 of the Flood Disaster Protection Act of 1973), whichever is later.
    FEMA proposed to increase the chargeable or subsidized rates as 
follows: 

------------------------------------------------------------------------
                                                      Rates per year per
                                                       $100 coverage on 
                 Type of structure                  --------------------
                                                     Structure  Contents
------------------------------------------------------------------------
(1) Residential....................................     $0.60      $0.70
(2) All other (including hotels and motels with                         
 normal occupancy of less than 6 months in                              
 duration).........................................       .70       1.40
------------------------------------------------------------------------

    For comparison, the current subsidized rates are as follows:

------------------------------------------------------------------------
                                                      Rates per year per
                                                       $100 coverage on 
                 Type of structure                  --------------------
                                                     Structure          
                                                                Contents
------------------------------------------------------------------------
(1) Residential....................................     $0.55      $0.65
(2) All other (including hotels and motels with                         
 normal occupancy of less than 6 months in                              
 duration).........................................       .65       1.30
------------------------------------------------------------------------

    A 45-day period (ending on May 5, 1994) was provided for review and 
comment on the proposed changes. No comments were received during the 
comment period. Therefore, the revision increasing the chargeable 
(subsidized) rates is incorporated into the final rule as proposed, 
without change.

National Environmental Policy Act

    Pursuant to section 102(2)(C) of the National Environmental Policy 
Act of 1969, 42 U.S.C. 4371 et seq., and the implementing regulations 
of the Council on Environmental Quality, 40 CFR parts 1500-1508, FEMA 
has prepared an environmental assessment of the issuance by FEMA of 
this final rule. The assessment concludes that there will be no 
significant impact on the human environment as a result of the issuance 
of the final rule. It is, therefore, found that the action does not 
constitute a major Federal action significantly affecting the quality 
of the human environment. On this basis, an Environmental Impact 
Statement will not be prepared. Copies of the environmental assessment 
are available for inspection at the Federal Emergency Management 
Agency, room 840, 500 C St., SW., Washington, DC 20472.

Executive Order 12866, Regulatory Planning and Review

    This final rule is not a significant regulatory action as defined 
under Executive Order 12866 of September 30, 1993, Regulatory Planning 
and Review, 58 FR 51735, October 4, 1993. To the extent possible, this 
rule adheres to the principles of regulation set forth in this 
Executive Order.

Paperwork Reduction Act

    This final rule does not contain a collection of information 
requirement as described in section 3504(h) of the Paperwork Reduction 
Act.

Executive Order 12612, Federalism

    This final rule involves no policies that have federalism 
implications under Executive Order 12612, Federalism, dated October 26, 
1987.

Executive Order 12778, Civil Justice Reform

    This rule meets the applicable standards of section 2(b)(2) of 
Executive Order 12778.

List of Subjects in 44 CFR Part 61

    Flood Insurance.

    Accordingly, 44 CFR part 61 is amended as follows:

PART 61--INSURANCE COVERAGE AND RATES

    1. The authority citation for part 61 continues to read as follows:

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.


    2. Section 61.9 is revised to read as follows: 
Sec. 61.9  Establishment of chargeable rates.

    (a) Pursuant to section 1308 of the Act, chargeable rates per year 
per $100 of flood insurance are established as follows for all areas 
designated by the Administrator under part 64 of this subchapter for 
the offering of flood insurance. 

                   Rates for New and Renewal Policies                   
------------------------------------------------------------------------
                                                      Rates per year per
                                                       $100 coverage on 
                 Type of structure                  --------------------
                                                     Structure          
                                                                Contents
------------------------------------------------------------------------
(1) Residential....................................     $0.60      $0.70
(2) All other (including hotels and motels with                         
 normal occupancy of less than 6 months in                              
 duration).........................................       .70       1.40
------------------------------------------------------------------------

    (b) The contents rate shall be based upon the use of the individual 
premises for which contents coverage is purchased.


(Catalog of Federal Domestic Assistance No. 83.100, ``Flood 
Insurance.'')

    Dated: May 18, 1994.
Elaine A. McReynolds,
Administrator, Federal Insurance Administration.
[FR Doc. 94-12628 Filed 5-23-94; 8:45 am]
BILLING CODE 6718-05-P