[Federal Register Volume 68, Number 28 (Tuesday, February 11, 2003)]
[Notices]
[Pages 6919-6921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3330]


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FEDERAL EMERGENCY MANAGEMENT AGENCY


Agency Information Collection Activities: Proposed Collection; 
Comment Request

ACTION: Notice and request for comments.

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SUMMARY: The Federal Emergency Management Agency, as part of its 
continuing effort to reduce paperwork and respondent burden, invites 
the general public and other Federal agencies to take this opportunity 
to comment on proposed revised collection of information. In accordance 
with the Paperwork Reduction Act of 1995 (44 U.S.C. 3506(c)(2)(A)), 
this notice seeks comments concerning the information collection 
outlined in 44 CFR Part 61, as it pertains to application for National 
Flood Insurance Program (NFIP) insurance.

SUPPLEMENTARY INFORMATION: The National Flood Insurance Program (NFIP) 
is authorized by Pub. L. 90-448 (1968) and expanded by Pub. L. 93-234 
(1973). The National Flood Insurance Act of 1968 requires that the 
Federal Emergency Management Agency (FEMA) provide flood insurance at 
full actuarial rates reflecting the complete flood risk to structures 
built or

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substantially improved on or after the effective date for the initial 
Flood Insurance Rate Map (FIRM) for the community, or after December 
31, 1974, whichever is later, so that the risks associated with 
buildings in flood-prone areas are borne by those located in such areas 
and not by the taxpayers at large. In accordance with Pub. L. 93-234, 
the purchase of flood insurance is mandatory when Federal or federally 
related financial assistance is being provided for acquisition or 
construction of buildings located, or to be located, within FEMA-
identified special flood hazard areas of communities that are 
participating in the NFIP.

Collection of Information

    Title: National Flood Insurance Program Policy Forms.
    Type of Information Collection: Revision of a currently approved 
collection.
    OMB Number: 3067-0022.
    Forms: FEMA Form 81-16, Flood Insurance Application; FEMA Form 81-
17, Cancellation/Nullification Request; FEMA Form 81-18, General Change 
Endorsement; Request for Policy Processing and Renewal Information 
Letter (RPPRI Letter); FEMA Form 81-25, V-Zone Risk Factor Rating; FEMA 
Form 81-67, Preferred Risk Application; and the Renewal Premium Notice.
    Abstract: In order to provide for the availability of policies for 
flood insurance, policies are marketed through the facilities of 
licensed insurance agents or brokers in the various States. 
Applications from agents or brokers are forwarded to a servicing 
company designated as fiscal agent by Federal Insurance Administration 
(FIA). Upon receipt and examination of the application and required 
premium, the servicing company issues the appropriate Federal flood 
insurance policy.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions; Farms; Federal Government; State, 
Local or Tribal Government.
    Estimated Total Annual Burden Hours:

----------------------------------------------------------------------------------------------------------------
                                                                     Number of       Per form      Total burden
                      FEMA NFIP policy form                          responses     burden hours        hours
----------------------------------------------------------------------------------------------------------------
81-16 Flood Insurance Application...............................          20,000          12 min      4,000 hrs.
81-67 Preferred Risk Application................................           5,000          15 min      1,000 hrs.
81-17 Cancellation..............................................           8,000         7.5 min      1,000 hrs.
81-18 Endorsement...............................................          75,000           9 min     11,250 hrs.
RPPRI Letters (to obtain missing information required for the
 applications, endorsements, and renewals)......................       Because this format is used to obtain
                                                                     information requested but missing on, and
                                                                        required to process, applications,
                                                                    endorsements and renewals, its burden hours
                                                                   are not counted separately, but are included
                                                                      in burden hour totals for those forms.
81-25 V-Zone Risk Factor Rating Form............................              50         6 hours        300 hrs.
Renewal Premium Notice..........................................         146,000           3 min      7,300 hrs.
Coastal Construction Manual--CD Version.........................              50          30 min         25 hrs.
                                                                 -----------------
    Total.......................................................         254,100  ..............     24,875 hrs.
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    Estimated Cost: The average annual estimated dollar cost to the 
respondent applying for or renewing an NFIP policy is $55.50. This is 
the average commission amount paid by the NFIP to the insurance agent 
who completes the paperwork in conjunction with the applicant and 
submits it on his/her behalf to the NFIP. The NFIP pays the insurance 
agent 15 percent of the annual premium paid by the applicant. The 
average annual premium for flood insurance written through the NFIP is 
$370.
    In addition, flood insurance applicants who opt to submit the V-
Zone Risk Factor Rating Form certified by a licensed engineer or 
architect may incur an additional cost of approximately $720 per 
insured structure. The V-Zone Risk Factor Rating Form is used by the 
NFIP to evaluate the building site condition, support system, and 
general building details to determine if rate discount is warranted. 
The NFIP offers insurance rate discount from 5 to 40 percent if the 
design and construction of the building exceeds the NFIP minimum 
requirements. In the past year, applicants submitting the V-Zone Risk 
Factor rating Form received an average of 20 percent discount on their 
annual premium. Based on this average percentage premium discount, 
property owners were able to recoup the additional cost within a one to 
two year period.
    The total annual cost to all respondents is approximately 
$9,526,500, which is the sum of $9,490,500 for policy applications and 
renewals and $36,000 for V-Zone Risk Factor Rating.
    The projected Operating Expenses (not including claims and claim 
adjustment expenses) of the NFIP are estimated at approximately 
$6,800,000 for fiscal year 2003. This amount includes all 
administrative expenses such as processing flood applications, 
endorsements, cancellations, and customer service.
    Comments: Written comments are solicited to (a) evaluate whether 
the proposed data collection is necessary for the proper performance of 
the agency, including whether the information shall have practical 
utility; (b) evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used; (c) evaluate the 
accuracy of the estimated costs to respondents to provide the 
information to the agency; (d) enhance the quality, utility, and 
clarity of the information to be collected; and (e) minimize the burden 
of the collection of information on those who are to respond, including 
through the use of appropriate automated, electronic, mechanical, or 
other technological collection techniques or other forms of information 
technology, e.g., permitting electronic submission of responses. 
Comments should be received within 60 days of the date of this notice.

ADDRESSES: Interested persons should submit written comments to Muriel 
B. Anderson, Chief, Records Management Branch, Information Resources 
Management Division, Information Technology Services Directorate, 
Federal Emergency Management

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Agency, 500 C Street, SW., Room 316, Washington, DC 20472.

FOR FURTHER INFORMATION CONTACT: Jhun de la Cruz, Senior Underwriter, 
Federal Insurance and Mitigation Administration at (202) 646-2650 for 
additional information. You may contact Ms. Anderson for copies of the 
proposed collection of information at facsimile number (202) 646-3347 
or email address [email protected].

    Dated: February 5, 2003.
Edward W. Kernan,
Division Director, Information Resources Management Division, 
Information Technology Services Directorate.
[FR Doc. 03-3330 Filed 2-10-03; 8:45 am]
BILLING CODE 6718-01-P