[Federal Register Volume 64, Number 146 (Friday, July 30, 1999)]
[Rules and Regulations]
[Pages 41305-41306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19417]


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FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 61

RIN 3067-AC35


National Flood Insurance Program (NFIP); Group Flood Insurance 
Policy

AGENCY: Federal Emergency Management Agency (FEMA).

ACTION: Final rule.

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SUMMARY: We (FEMA) adopt as our final rule the interim rule that we 
published establishing the Group Flood Insurance Policy (GFIP); 
however, we are changing the term of the policy from thirty-six to 
thirty-seven months.

EFFECTIVE DATE: July 30, 1999.

FOR FURTHER INFORMATION CONTACT: Charles M. Plaxico, Jr., Federal 
Emergency Management Agency, Federal Insurance Administration, 
(202)646-3422, (facsimile) (202)646-4327, or (email) 
[email protected].

SUPPLEMENTARY INFORMATION: On May 1, 1996, we published in the Federal 
Register (Vol. 61, page 19197) an interim final rule that establishes a 
Group Flood Insurance Policy (GFIP) and authorizes its use for 
recipients of grant awards under the IFG Program as authorized under 
Sec. 411 of the Stafford Act (42 U.S.C. 5178). The purpose of that 
interim final rule was to provide a temporary mechanism for the 
recipients of IFG grants--often low-income persons or those on fixed 
incomes--to have flood insurance coverage for a period of three years 
following a flood loss so that they would have time to recover from the 
disaster and be in a better position to buy flood insurance for 
themselves after the expiration of their three-year policy term. We 
received no comments during the comment period for the interim final 
rule.
    Under Sec. 582 of the National Flood Insurance Reform Act of 1994, 
disaster victims must buy and maintain flood insurance in order to be 
eligible for future disaster aid to repair damages for flood losses. 
Toward that end, we contacted those States that have current GFIPs 
offering information and our assistance to help current GFIP 
certificate holders transition from group coverage to an individual 
policy. We are aware that at least one State needs more time to work 
with its GFIP certificate holders so that they will continue to be 
eligible for future Federal disaster assistance flood damages to their 
property.
    This final rule will give both State governments and the GFIP 
certificate

[[Page 41306]]

holders an additional month to make arrangements to buy and maintain 
flood insurance beyond the current term for the GFIP of thirty-six 
months.

National Environmental Policy Act

    The requirements of 44 CFR Part 10, Environmental Consideration, 
categorically exclude this final rule. We have not prepared an 
environmental impact assessment.

Executive Order 12866, Regulatory Planning and Review

    This final rule is not a significant regulatory action within the 
meaning of Sec. 2(f) of E.O. 12866 of September 30, 1993, 58 FR 51735, 
but attempts to adhere to the regulatory principles set forth in E.O. 
12866. The Office of Management and Budget has not reviewed this final 
rule under E.O. 12866.

Paperwork Reduction Act

    This final rule does not contain a collection of information and 
therefore is not subject to the provisions of the Paperwork Reduction 
Act of 1995.

Executive Order 12612, Federalism

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

Executive Order 12778, Civil Justice Reform

    This final rule meets the applicable standards of Sec. 2(b)(2) of 
E.O. 12778.

Congressional Review of Agency Rulemaking.

    We have sent this final rule to the Congress and to the General 
Accounting Office under the Congressional Review of Agency Rulemaking 
Act, Pub. L. 104-121. The rule is not a ``major rule'' within the 
meaning of that Act. It is an administrative action in support of 
normal day-to-day activities. It does not result in nor is it likely to 
result in an annual effect on the economy of $100,000,000 or more. It 
will not result in a major increase in costs or prices for consumers, 
individual industries, Federal, State, or local government agencies, or 
geographic regions. It will not have ``significant adverse effects'' on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based enterprises to compete with foreign-
based enterprises. This final rule is exempt (1) from the requirements 
of the Regulatory Flexibility Act, and (2) from the Paperwork Reduction 
Act. The rule is not an unfunded Federal mandate within the meaning of 
the Unfunded Mandates Reform Act of 1995, Pub. L. 104-4. It does not 
meet the $100,000,000 threshold of that Act, and any enforceable duties 
are imposed as a condition of Federal assistance or a duty arising from 
participation in a voluntary Federal program.

List of Subjects in 44 CFR Part 61

    Flood insurance.
    Accordingly, we adopt the interim rule amending 44 CFR Part 61, 
which was published at 61 FR 19197 on May 1, 1996, as the final rule 
with the following change:

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 61.17 is revised to read as follows:


Sec. 61.17  Group Flood Insurance Policy.

    (a) A Group Flood Insurance Policy (GFIP) is a policy covering all 
individuals named by a State as recipients under Sec. 411 of the 
Stafford Act (42 U.S.C. 5178) of an Individual and Family Grant (IFG) 
program award for flood damage as a result of a major disaster 
declaration by the President.
    (b) The premium for the GFIP, initially, is a flat fee of $200 per 
policyholder. Thereafter, the premium may be adjusted to reflect NFIP 
loss experience and any adjustment of benefits under the IFG program.
    (c) The amount of coverage will equal the maximum grant amount 
established under Sec. 411 of the Stafford Act (42 U.S.C. 5178).
    (d) The term of the GFIP will be 37 months and will begin 60 days 
from the date of the disaster declaration.
    (e) Coverage for individual grantees begins on the thirtieth day 
after the NFIP receives the required data for individual grantees and 
their premium payments.
    (f) A Certificate of Flood Insurance will be sent to each 
individual insured under the GFIP.
    (g) The GFIP is the Standard Flood Insurance Policy Dwelling Form 
(a copy of which is included in Appendix A(1) of this part), except 
that:
    (1) The GFIP provides coverage for losses caused by land 
subsidence, sewer backup, or seepage of water without regard to the 
requirement in paragraph B.3. of Article 3 that the structure be 
insured to 80 percent of its replacement cost or the maximum amount of 
insurance available under the NFIP.
    (2) Article 7, Deductibles, does not apply to the GFIP. Instead, a 
special deductible of $200 (applicable separately to any building loss 
and any contents loss) applies to insured flood-damage losses sustained 
by the insured property in the course of any subsequent flooding event 
during the term of the GFIP. The separate deductible applicable to 
Article 3 B.3 does not apply.
    (3) Article 9 E., Cancellation of Policy by You, does not apply to 
the GFIP.
    (4) Article 9 G., Policy Renewal, does not apply to the GFIP.
    (h) A notice will be sent to the GFIP certificate holders 
approximately 60 days before the end of the 3-year term of the GFIP. 
The notice will:
    (1) Encourage them to contact a local insurance agent or producer 
or a private insurance company selling NFIP policies under the Write 
Your Own program of the NFIP to apply for a conventional NFIP Standard 
Flood Insurance Policy; and
    (2) Advise them as to the amount of coverage they must maintain in 
order not to jeopardize their eligibility for future disaster 
assistance. The amount of flood insurance coverage to be maintained by 
certificate holders will be provided to the NFIP by the IFG program or 
the State with its own fully funded disaster assistance program.

(Catalog of Federal Domestic Assistance No. 83.100, ``Flood 
Insurance''; No. 83.516, ``Disaster Assistance'')

    Dated: July 21, 1999.
Jo Ann Howard,
Administrator, Federal Insurance Administration.
[FR Doc. 99-19417 Filed 7-29-99; 8:45 am]
BILLING CODE 6718-03-P