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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY MILLER, BAKER, BEAR, BELFANTI, BEYER, BOYD, BUXTON, CAUSER, CLYMER, DePASQUALE, FABRIZIO, FRANKEL, GEORGE, GIBBONS, GINGRICH, GOODMAN, GRUCELA, HARKINS, HESS, KILLION, KOTIK, MAJOR, O'NEILL, PETRI, PHILLIPS, PICKETT, RAPP, REICHLEY, ROCK, SCAVELLO, SIPTROTH, K. SMITH, STABACK, SWANGER, VULAKOVICH AND WALKO, FEBRUARY 10, 2009 |
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| REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 10, 2009 |
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| AN ACT |
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1 | Establishing the Flood Insurance Premium Assistance Program to |
2 | provide premium assistance to eligible Pennsylvania residents |
3 | who purchase flood insurance; and imposing powers and duties |
4 | on the Insurance Department. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Short title. |
8 | This act shall be known and may be cited as the Flood |
9 | Insurance Premium Assistance Program Act. |
10 | Section 2. Legislative findings. |
11 | The General Assembly finds and declares as follows: |
12 | (1) Pennsylvania is the most flood-prone state in the |
13 | nation. |
14 | (2) Many communities in this Commonwealth frequently are |
15 | subject to flooding which adversely affects means of |
16 | livelihood and economic resources and causes significant |
17 | damage and disruption in the life of the community but which |
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1 | is not often of sufficient magnitude to qualify for Federal |
2 | disaster assistance programs. |
3 | (3) The Commonwealth needs a proactive program to |
4 | protect its citizens against the economic damages incurred by |
5 | continued flooding, while maintaining its ability to obtain |
6 | Federal disaster assistance in the future. |
7 | Section 3. Definitions. |
8 | The following words and phrases when used in this act shall |
9 | have the meanings given to them in this section unless the |
10 | context clearly indicates otherwise: |
11 | "Department." The Insurance Department of the Commonwealth. |
12 | "FEMA." The Federal Emergency Management Agency which |
13 | administers the National Flood Insurance Program. |
14 | "Net book premium." The total premium amount for all |
15 | eligible flood insurance policies in this Commonwealth. |
16 | "NFIP." The National Flood Insurance Program, created by |
17 | Congress in response to the rising cost of taxpayer-funded |
18 | disaster relief for flood victims to provide flood insurance to |
19 | anyone living in a participating community that adheres to NFIP |
20 | floodplain management and development regulations. |
21 | "Program." The Flood Insurance Premium Assistance Program |
22 | established in section 4. |
23 | "Providers." National Flood Insurance Program-approved |
24 | insurance providers who sell National Flood Insurance Program |
25 | flood insurance in this Commonwealth. |
26 | Section 4. Flood Insurance Premium Assistance Program. |
27 | There is established under the jurisdiction of the Insurance |
28 | Department the Flood Insurance Premium Assistance Program to |
29 | assist any eligible Pennsylvania resident or business purchasing |
30 | flood insurance with 15% of the cost of premiums for that flood |
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1 | insurance in years in which funds are appropriated or made |
2 | available to the department to administer the program. |
3 | Section 5. Eligibility. |
4 | (a) General rule.--Any Pennsylvania resident or business is |
5 | eligible to participate in the program if either: |
6 | (1) Has purchased flood insurance prior to the initial |
7 | year of the program or purchases flood insurance during or |
8 | after the initial year of the program. |
9 | (2) Lives in a community participating in the National |
10 | Flood Insurance Program. |
11 | (b) Termination of coverage.-- |
12 | (1) Subject to the provisions of paragraphs (2) and (3), |
13 | if a participant in the program drops flood insurance |
14 | coverage on the covered property where the participant |
15 | resides or conducts business, that participant will not be |
16 | eligible for future participation in the program for coverage |
17 | on the same property as long as the participant continues to |
18 | reside at that property or conduct business at that property. |
19 | (2) If a participant moves back to or conducts business |
20 | on a property for which that participant had dropped coverage |
21 | at a prior date, the participant shall be eligible for the |
22 | 15% premium assistance under the program upon purchasing |
23 | flood insurance for that property after the expiration of one |
24 | calendar year. |
25 | (3) If a participant purchases a new policy for a |
26 | different property, the participant shall be eligible for a |
27 | 15% premium discount for the property upon the purchase of |
28 | flood insurance for the property. |
29 | Section 6. Assistance when program not funded. |
30 | If an eligible Pennsylvania resident or business purchases |
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1 | flood insurance after the initial year of enactment but in a |
2 | year in which the program is not funded and administered, the |
3 | participant shall be eligible for a discount in the amount of |
4 | 15% of the premium beginning with the year in which the program |
5 | is reenacted. |
6 | Section 7. Mitigation. |
7 | If a participant resides at a property determined by the |
8 | Director of FEMA to be a severe repetitive loss property as |
9 | defined under section 1361A of the National Flood Insurance Act |
10 | of 1968 (42 U.S.C. § 4102a), the participant shall accept |
11 | mitigation offers provided under that act or be disqualified |
12 | from the Flood Insurance Premium Assistance Program upon the |
13 | refusal to do so. |
14 | Section 8. Administration of program. |
15 | The program shall be administered by the Insurance |
16 | Department, which shall promulgate the necessary rules and |
17 | regulations to implement and administer the program. The |
18 | department shall: |
19 | (1) Enter into a contract with FEMA and NFIP-approved |
20 | insurance providers to administer the program in an agreed- |
21 | upon way. The department is authorized to draft and enter |
22 | into agreements with Federal agencies, other Commonwealth |
23 | agencies and private entities as necessary to implement the |
24 | program. |
25 | (2) Publicize the program through its flood insurance |
26 | consumer education plan. This shall include, but not be |
27 | limited to, informing consumers when the program will be |
28 | available, when the program will be discontinued due to |
29 | unavailability of funding and/or when the program will be |
30 | reenacted. |
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1 | (3) In years in which funding has been made available to |
2 | the department for the program, notify FEMA and insurance |
3 | providers of the department's intent to provide premium |
4 | assistance for the following calendar year and to remit |
5 | payment to FEMA in a projected amount equal to 15% of the net |
6 | book premium to be discounted for all eligible policies in |
7 | effect between January 1 and December 31 of the upcoming |
8 | calendar year. |
9 | (4) In years in which insufficient funding is made |
10 | available to administer the program for the next calendar |
11 | year, notify FEMA and insurance providers by November 1 of |
12 | the department's intent to discontinue premium assistance for |
13 | the following calendar year. |
14 | (5) On or before December 31 of years preceding premium |
15 | assistance, remit payment to FEMA in a projected amount equal |
16 | to 15% of the net book premium for all eligible policies to |
17 | be taken out in the following calendar year. |
18 | (6) Develop an agreement and procedure with FEMA and |
19 | insurance providers to address instances of remittance of |
20 | insufficient funding needed by FEMA to provide premium |
21 | assistance for any given year. This may include, but is not |
22 | limited to, establishing extra payment dates to provide |
23 | supplemental funding to FEMA to cover any instances of |
24 | insufficient funding or discontinuing the program for the |
25 | following calendar year and using those appropriated funds to |
26 | compensate FEMA for funding owed. |
27 | (7) No later than March 1 of each year, submit a report |
28 | to the General Assembly detailing its plan, its |
29 | implementation and the progress of the program. The report |
30 | shall include the number of Commonwealth residents who have |
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1 | purchased flood insurance during the preceding year and |
2 | comparisons to prior years. |
3 | Section 9. Funding. |
4 | The program shall be administered based on nonlapsing funds |
5 | appropriated to the Insurance Department by the General Assembly |
6 | to provide payment to FEMA in an amount equal to 15% of the |
7 | costs of insurance premiums for any eligible Pennsylvania |
8 | resident or business that purchases a flood insurance policy in |
9 | years in which funds are appropriated or made available to the |
10 | department for premium assistance. |
11 | Section 10. Implementation. |
12 | The program shall be implemented by the department in the |
13 | first full calendar year that occurs after funding is made |
14 | available, but no sooner than 90 days after the effective date |
15 | of this act. |
16 | Section 11. Effective date. |
17 | This act shall take effect in 90 days. |
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