S 2143 — National Flood Insurance Program Consultant Accountability Act of 2021

Summary

National Flood Insurance Program Consultant Accountability Act of 2021 This bill allows the Federal Emergency Management Agency (FEMA) to terminate certain contracts under the National Flood Insurance Program on the basis of detrimental conduct to the program by a covered entity (an attorney, law firm, consultant, or third-party company that provides certain services under the contract). Specifically, on such basis, FEMA may terminate a contract between a covered entity and a Write Your Own company (a property and casualty company that writes and services federal standard flood insurance policies in its own name). FEMA shall establish a process for a covered entity to appeal such a termination. Neither FEMA nor a Write Your Own company is required to make an early-termination payout to a covered entity with respect to a contract terminated under the bill.

Bill Text

• Introduced Introduced in Senate Current html June 21, 2021

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill adds a new section allowing the termination of contracts with certain entities that engage in detrimental conduct to the National Flood Insurance Program.

• 42 U.S.C. 4081

  SEC. 1349. TERMINATION OF CONTRACTS. (a) Definitions.--In this section-- (1) the term `covered entity' means any attorney, law firm, consultant, or third-party company that provides services to a Write Your Own company; and (2) the term `Write Your Own company' means a company participating in the cooperative undertaking between the insurance industry and the Federal Insurance and Mitigation Administration that allows participating property and casualty insurance companies to write and service standard flood insurance policies. (b) Termination.-- (1) In general.--Notwithstanding any other provision of law, the Administrator may terminate a contract or other agreement between a covered entity and a Write Your Own company if the Administrator-- (A) determines that the covered entity has engaged in conduct that is detrimental to the flood insurance program authorized under chapter I; and (B) not later than 14 days before terminating the contract or other agreement, provides notice to the covered entity of the termination. (2) Appeal.--The Administrator shall establish a process for a covered entity to appeal a termination of a contract or other agreement under paragraph (1). (3) Early termination payouts.--The Administrator or a Write Your Own company is not required to make any early termination payout to a covered entity with respect to a contract or agreement with the Write Your Own company that the Administrator terminates under paragraph (1).

  This establishes new rules for terminating contracts with entities that perform detrimental actions related to flood insurance.

Action History

1. June 21, 2021

   Introduced in Senate

2. June 21, 2021

   Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsors

• John Kennedy · Primary

Subjects