Bill Text: PA HB178 | 2011-2012 | Regular Session | Introduced

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Bill Title: Establishing the Flood Insurance Premium Assistance Program to provide premium assistance to eligible Pennsylvania residents who purchase flood insurance; and imposing powers and duties on the Insurance Department.

Sponsorship: Moderate Partisan Bill (Republican 13-2)

Status: (Introduced - Dead) 2011-01-24 - Referred to INSURANCE [HB178 Detail]

Download: Pennsylvania-2011-HB178-Introduced.html

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PRINTER'S NO. 121
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 178 Session of2011
INTRODUCED BY MILLER, BOYD, CLYMER, GINGRICH, HARHART, HESS, MAJOR, O'NEILL, PYLE, READSHAW, ROCK, SCAVELLO, K. SMITH, SWANGER AND QUINN, JANUARY 24, 2011
REFERRED TO COMMITTEE ON INSURANCE, JANUARY 24, 2011
AN ACT
Establishing the Flood Insurance Premium Assistance Program to
provide premium assistance to eligible Pennsylvania residents
who purchase flood insurance; and imposing powers and duties
on the Insurance Department.
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 Premium Assistance Program Act.
Section 2. Legislative findings.
The General Assembly finds and declares as follows:
(1) Pennsylvania is the most flood-prone state in the
nation.
(2) Many communities in this Commonwealth frequently are
subject to flooding which adversely affects means of
livelihood and economic resources and causes significant
damage and disruption in the life of the community but which
is not often of sufficient magnitude to qualify for Federal
disaster assistance programs.
(3) The Commonwealth needs a proactive program to
protect its citizens against the economic damages incurred by
continued flooding, while maintaining its ability to obtain
Federal disaster assistance in the future.
Section 3. 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:
"Department." The Insurance Department of the Commonwealth.
"FEMA." The Federal Emergency Management Agency, which
administers the National Flood Insurance Program.
"Net book premium." The total premium amount for all
eligible flood insurance policies in this Commonwealth.
"NFIP." The National Flood Insurance Program, created by
Congress in response to the rising cost of taxpayer-funded
disaster relief for flood victims to provide flood insurance to
anyone living in a participating community that adheres to NFIP
floodplain management and development regulations.
"Program." The Flood Insurance Premium Assistance Program
established in section 4.
"Providers." National Flood Insurance Program-approved
insurance providers who sell National Flood Insurance Program
flood insurance in this Commonwealth.
Section 4. Flood Insurance Premium Assistance Program.
There is established under the jurisdiction of the Insurance
Department the Flood Insurance Premium Assistance Program to
assist any eligible Pennsylvania resident or business purchasing
flood insurance with 15% of the cost of premiums for that flood
insurance in years in which funds are appropriated or made
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available to the department to administer the program.
Section 5. Eligibility.
(a) General rule.--Any Pennsylvania resident or business is
eligible to participate in the program if either:
(1) Has purchased flood insurance prior to the initial
year of the program or purchases flood insurance during or
after the initial year of the program.
(2) Lives in a community participating in the National
Flood Insurance Program.
(b) Termination of coverage.--
(1) Subject to the provisions of paragraphs (2) and (3),
if a participant in the program drops flood insurance
coverage on the covered property where the participant
resides or conducts business, that participant will not be
eligible for future participation in the program for coverage
on the same property as long as the participant continues to
reside at that property or conduct business at that property.
(2) If a participant moves back to or conducts business
on a property for which that participant had dropped coverage
at a prior date, the participant shall be eligible for the
15% premium assistance under the program upon purchasing
flood insurance for that property after the expiration of one
calendar year.
(3) If a participant purchases a new policy for a
different property, the participant shall be eligible for a
15% premium discount for the property upon the purchase of
flood insurance for the property.
Section 6. Assistance when program not funded.
If an eligible Pennsylvania resident or business purchases
flood insurance after the initial year of enactment but in a
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year in which the program is not funded and administered, the
participant shall be eligible for a discount in the amount of
15% of the premium beginning with the year in which the program
is reenacted.
Section 7. Mitigation.
If a participant resides at a property determined by the
Director of FEMA to be a severe repetitive loss property as
defined under section 1361A of the National Flood Insurance Act
of 1968 (Public Law 90-448, 42 U.S.C. § 4102a), the participant
shall accept mitigation offers provided under that act or be
disqualified from the Flood Insurance Premium Assistance Program
upon the refusal to do so.
Section 8. Administration of program.
The program shall be administered by the Insurance
Department, which shall promulgate the necessary rules and
regulations to implement and administer the program. The
department shall:
(1) Enter into a contract with FEMA and NFIP-approved
insurance providers to administer the program in an agreed-
upon way. The department is authorized to draft and enter
into agreements with Federal agencies, other Commonwealth
agencies and private entities as necessary to implement the
program.
(2) Publicize the program through its flood insurance
consumer education plan. This shall include, but not be
limited to, informing consumers when the program will be
available, when the program will be discontinued due to
unavailability of funding and/or when the program will be
reenacted.
(3) In years in which funding has been made available to
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the department for the program, notify FEMA and insurance
providers of the department's intent to provide premium
assistance for the following calendar year and to remit
payment to FEMA in a projected amount equal to 15% of the net
book premium to be discounted for all eligible policies in
effect between January 1 and December 31 of the upcoming
calendar year.
(4) In years in which insufficient funding is made
available to administer the program for the next calendar
year, notify FEMA and insurance providers by November 1 of
the department's intent to discontinue premium assistance for
the following calendar year.
(5) On or before December 31 of years preceding premium
assistance, remit payment to FEMA in a projected amount equal
to 15% of the net book premium for all eligible policies to
be taken out in the following calendar year.
(6) Develop an agreement and procedure with FEMA and
insurance providers to address instances of remittance of
insufficient funding needed by FEMA to provide premium
assistance for any given year. This may include, but is not
limited to, establishing extra payment dates to provide
supplemental funding to FEMA to cover any instances of
insufficient funding or discontinuing the program for the
following calendar year and using those appropriated funds to
compensate FEMA for funding owed.
(7) No later than March 1 of each year, submit a report
to the General Assembly detailing its plan, its
implementation and the progress of the program. The report
shall include the number of Commonwealth residents who have
purchased flood insurance during the preceding year and
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comparisons to prior years.
Section 9. Funding.
The program shall be administered based on nonlapsing funds
appropriated to the Insurance Department by the General Assembly
to provide payment to FEMA in an amount equal to 15% of the cost
of insurance premiums for any eligible Pennsylvania resident or
business that purchases a flood insurance policy in years in
which funds are appropriated or made available to the department
for premium assistance.
Section 10. Implementation.
The program shall be implemented by the department in the
first full calendar year that occurs after funding is made
available, but no sooner than 90 days after the effective date
of this act.
Section 11. Effective date.
This act shall take effect in 90 days.
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