110th CONGRESS
1st Session
H. R. 920
To amend the National Flood Insurance Act of 1968 to provide for
the national flood insurance program to make available multiperil coverage
for damage resulting from windstorms or floods, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 8, 2007
Mr. TAYLOR (for himself, Ms. WATERS, Mr. JINDAL, Mr. MELANCON, Mr. JONES
of North Carolina, Mr. JEFFERSON, Mr. BONNER, Mrs. MALONEY of New York,
Mr. CLEAVER, Mr. AL GREEN of Texas, Mr. CLAY, Mr. MARKEY, Mr. LINCOLN DAVIS
of Tennessee, and Mr. ALEXANDER) introduced the following bill; which was
referred to the Committee on Financial Services
A BILL
To amend the National Flood Insurance Act of 1968 to provide for
the national flood insurance program to make available multiperil coverage
for damage resulting from windstorms or floods, 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. SHORT TITLE.
This Act may be cited as the `Multiple Peril Insurance Act of 2007'.
SEC. 2. FLOOD AND WINDSTORM MULTIPERIL COVERAGE.
Section 1304 of the National Flood Insurance Act of 1968 (42 U.S.C. 4011)
is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new subsection:
`(c) Multiperil Coverage for Damage From Flood or Windstorm-
`(1) IN GENERAL- The national flood insurance program established pursuant
to subsection (a) shall enable the purchase of optional insurance against
loss resulting from physical damage to or loss of real property or personal
property related thereto located in the United States arising from any
flood or windstorm, subject to the limitations in this subsection and
section 1306(b).
`(2) COMMUNITY PARTICIPATION REQUIREMENT- Multiperil coverage pursuant
to this subsection may not be provided in any area (or subdivision thereof)
unless an appropriate public body shall have adopted adequate land use
and control measures (with effective enforcement provisions) which the
Director finds are consistent with the comprehensive criteria for land
management and use relating to windstorms establish pursuant to section
1361(d)(2).
`(3) PROHIBITION AGAINST DUPLICATIVE COVERAGE- Multiperil coverage pursuant
to this subsection may not be provided with respect to any structure (or
the personal property related thereto) for any period during which such
structure is covered, at any time, by flood insurance coverage made available
under this title.
`(4) NATURE OF COVERAGE- Multiperil coverage pursuant to this subsection
shall--
`(A) cover losses only from physical damage resulting from flooding
or windstorm; and
`(B) provide for approval and payment of claims under such coverage
upon proof that such loss must have resulted from either windstorm or
flooding, but shall not require for approval and payment of a claim
that the specific cause of the loss, whether windstorm or flooding,
be distinguished or identified.
`(5) ACTUARIAL RATES- Multiperil coverage pursuant to this subsection
shall be made available for purchase for a property only at chargeable
risk premium rates that, based on consideration of the risks involved
and accepted actuarial principles, and including operating costs and allowance
and administrative expenses, are required in order to make such coverage
available on an actuarial basis for the type and class of properties covered.
`(6) TERMS OF COVERAGE- The Director shall, after consultation with persons
and entities referred to in section 1306(a), provide by regulation for
the general terms and conditions of insurability which shall be applicable
to properties eligible for multiperil coverage under this subsection,
subject to the provisions of this subsection, including--
`(A) the types, classes, and locations of any such properties which
shall be eligible for such coverage, which shall include residential
and nonresidential properties;
`(B) subject to paragraph (7), the nature and limits of loss or damage
in any areas (or subdivisions thereof) which may be covered by such
coverage;
`(C) the classification, limitation, and rejection of any risks which
may be advisable;
`(D) appropriate minimum premiums;
`(E) appropriate loss deductibles; and
`(F) any other terms and conditions relating to insurance coverage or
exclusion that may be necessary to carry out this subsection.
`(7) LIMITATIONS ON AMOUNT OF COVERAGE- The regulations issued pursuant
to paragraph (6) shall provide that the aggregate liability under multiperil
coverage made available under this subsection shall not exceed the lesser
of the replacement cost for covered losses or the following amounts, as
applicable:
`(A) RESIDENTIAL STRUCTURES- In the case of residential properties--
`(i) for any single-family dwelling, $500,000; and
`(ii) for any structure containing more than one dwelling unit, $500,000
for each separate dwelling unit in the structure; and
`(iii) $150,000 per dwelling unit for--
`(I) any contents related to such unit; and
`(II) any necessary increases in living expenses incurred by the
insured when losses from flooding or windstorm make the residence
unfit to live in.
`(B) NONRESIDENTIAL PROPERTIES- In the case of nonresidential properties
(including church properties)--
`(i) $1,000,000 for any single structure; and
`(I) any contents related to such structure;
`(II) in the case of any nonresidential property that is a business
property, any losses resulting from any partial or total interruption
of the insured's business caused by damage to, or loss of, such
property from flooding or windstorm, except that for purposes of
such coverage, losses shall be determined based on the profits the
covered business would have earned, based on previous financial
records, had the flood or windstorm not occurred.'.
SEC. 3. PROHIBITION AGAINST DUPLICATIVE COVERAGE.
The National Flood Insurance Act of 1968 is amended by inserting after section
1313 (42 U.S.C. 4020) the following new section;
`PROHIBITION AGAINST DUPLICATIVE COVERAGE
`Sec. 1314. Flood insurance under this title may not be provided with respect
to any structure (or the personal property related thereto) for any period
during which such structure is covered, at any time, by multiperil insurance
coverage made available pursuant to section 1304(c).'.
SEC. 4. COMPLIANCE WITH STATE AND LOCAL LAW.
Section 1316 of the National Flood Insurance Act of 1968 (42 U.S.C. 4023)
is amended--
(1) by inserting `(a) Flood Protection Measures- ' before `No new'; and
(2) by adding at the end the following new subsection:
`(b) Windstorm Protection Measures- No new multiperil coverage shall be
provided under section 1304(c) for any property that the Director finds
has been declared by a duly constituted State or local zoning authority,
or other authorized public body to be in violation of State or local laws,
regulations, or ordinances, which are intended to reduce damage caused by
windstorms.'.
SEC. 5. CRITERIA FOR LAND MANAGEMENT AND USE.
Section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102)
is amended by adding at the end the following new subsection:
`(1) STUDIES AND INVESTIGATIONS- The Director shall carry out studies
and investigations under this section to determine appropriate measures
in windstorm-prone areas as to land management and use, windstorm zoning,
and windstorm damage prevention, and may enter into contracts, agreements,
and other appropriate arrangements to carry out such activities. Such
studies and investigations shall include laws, regulations, and ordinance
relating to the orderly development and use of areas subject to damage
from windstorm risks, and zoning building codes, building permits, and
subdivision and other building restrictions for such areas.
`(2) CRITERIA- On the basis of the studies and investigations pursuant
to paragraph (1) and such other information as may be appropriate, the
Direct shall establish comprehensive criteria designed to encourage, where
necessary, the adoption of adequate State and local measures which, to
the maximum extent feasible, will assist in reducing damage caused by
windstorms.
`(3) COORDINATION WITH STATE AND LOCAL GOVERNMENTS- The Director shall
work closely with and provide any necessary technical assistance to State,
interstate, and local governmental agencies, to encourage the application
of criteria established under paragraph (2) and the adoption and enforcement
of measures referred to in such paragraph .'.
SEC. 6. DEFINITIONS.
Section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 4121)
is amended--
(1) in paragraph (14), by striking `and' at the end;
(2) in paragraph (15) by striking the period at the end and inserting
`; and'; and
(3) by adding at the end the following new paragraph:
`(16) the term `windstorm' means any hurricane, tornado, cyclone, typhoon,
or other wind event.'.
END
