THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HANNA, BOYD, CARROLL, CONKLIN, FABRIZIO, FAIRCHILD, FRANKEL, GEIST, HALUSKA, KORTZ, KOTIK, MAHONEY, McGEEHAN, MURT, PALLONE, SIPTROTH, K. SMITH, SOLOBAY AND WHITE, MARCH 13, 2009

REFERRED TO COMMITTEE ON INSURANCE, MARCH 13, 2009  

AN ACT

Regulating the amount of flood insurance coverage required by

persons purchasing mortgages from lenders.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Flood

Insurance Coverage Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Flood insurance coverage."  Flood insurance covering owner-

occupied private residential properties against losses caused by

floods.

"Lender."  Any bank, savings bank, savings and loan

association, credit union, mortgage bank, mortgage broker,

finance company, consumer discount company or other financial

institution or person that lends money to a borrower and secures

the loan by a mortgage given by the borrower on real property or

by placing a lien against real property.

Section 3.  Restriction.

No person who purchases a mortgage from a lender may require

the borrower, as a condition of maintaining the secured loan, to

obtain flood insurance coverage which exceeds the amount

required by the lender at the time during which the loan was

originated.

Section 4.  Effective date.

This act shall take effect immediately.