
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC4015]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
           SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM
 
Sec. 4015. Chargeable premium rates


(a) Establishment; terms and conditions

    On the basis of estimates made under section 4014 of this title, and 
such other information as may be necessary, the Director shall from time 
to time, after consultation with the advisory committee authorized under 
section 4025 of this title, appropriate representatives of the pool 
formed or otherwise created under section 4051 of this title, and 
appropriate representatives of the insurance authorities of the 
respective States, prescribe by regulation--
        (1) chargeable premium rates for any types and classes of 
    properties for which insurance coverage shall be available under 
    section 4012 of this title (at less than the estimated risk premium 
    rates under section 4014(a)(1) of this title, where necessary), and
        (2) the terms and conditions under which, and the areas 
    (including subdivisions thereof) within which, such rates shall 
    apply.

(b) Considerations for rates

    Such rates shall, insofar as practicable, be--
        (1) based on a consideration of the respective risks involved, 
    including differences in risks due to land use measures, flood-
    proofing, flood forecasting, and similar measures.
        (2) adequate, on the basis of accepted actuarial principles, to 
    provide reserves for anticipated losses, or, if less than such 
    amount, consistent with the objective of making flood insurance 
    available where necessary at reasonable rates so as to encourage 
    prospective insureds to purchase such insurance and with the 
    purposes of this chapter,
        (3) adequate, together with the fee under paragraph (1)(B)(iii) 
    or (2) of section 4014(a) of this title, to provide for any 
    administrative expenses of the flood insurance and floodplain 
    management programs (including the costs of mapping activities under 
    section 4101 of this title), and
        (4) stated so as to reflect the basis for such rates, including 
    the differences (if any) between the estimated risk premium rates 
    under section 4014(a)(1) of this title and the estimated rates under 
    section 4014(a)(2) of this title.

(c) Rate with respect to property the construction or substantial 
        improvement of which has been started after December 31, 1974, 
        or effective date of initial rate map published for area in 
        which property is located, whichever is later

    Subject only to the limitation under subsection (e) of this section, 
the chargeable rate with respect to any property, the construction or 
substantial improvements of which the Director determines has been 
started after December 31, 1974, or the effective date of the initial 
rate map published by the Director under paragraph (2) of section 4101 
of this title for the area in which such property is located, whichever 
is later, shall not be less than the applicable estimated risk premium 
rate for such area (or subdivision thereof) under section 4014(a)(1) of 
this title.

(d) Payment of certain sums to Director; deposits in Fund

    With respect to any chargeable premium rate prescribed under this 
section, a sum equal to the portion of the rate that covers any 
administrative expenses of carrying out the flood insurance and 
floodplain management programs which have been estimated under 
paragraphs (1)(B)(ii) and (1)(B)(iii) of section 4014(a) of this title 
or paragraph (2) of such section (including the fees under such 
paragraphs), shall be paid to the Director. The Director shall deposit 
the sum in the National Flood Insurance Fund established under section 
4017 of this title.

(e) Annual limitation on premium increases

    Notwithstanding any other provision of this chapter, the chargeable 
risk premium rates for flood insurance under this chapter for any 
properties within any single risk classification may not be increased by 
an amount that would result in the average of such rate increases for 
properties within the risk classification during any 12-month period 
exceeding 10 percent of the average of the risk premium rates for 
properties within the risk classification upon the commencement of such 
12-month period.

(Pub. L. 90-448, title XIII, Sec. 1308, Aug. 1, 1968, 82 Stat. 576; Pub. 
L. 93-234, title I, Sec. 103, Dec. 31, 1973, 87 Stat. 978; Pub. L. 98-
181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 
101-508, title II, Sec. 2302(e)(2), Nov. 5, 1990, 104 Stat. 1388-24; 
Pub. L. 103-325, title V, Sec. 572(a), Sept. 23, 1994, 108 Stat. 2277.)


                               Amendments

    1994--Subsec. (c). Pub. L. 103-325, Sec. 572(a)(1), substituted 
``Subject only to the limitation under subsection (e) of this section'' 
for ``Notwithstanding any other provision of this chapter''.
    Subsec. (e). Pub. L. 103-325, Sec. 572(a)(2), added subsec. (e).
    1990--Subsec. (b)(3), (4). Pub. L. 101-508, Sec. 2302(e)(2)(A), 
added par. (3) and redesignated former par. (3) as (4).
    Subsec. (d). Pub. L. 101-508, Sec. 2302(e)(2)(B), added subsec. (d) 
and struck out former subsec. (d) which read as follows: ``In the event 
any chargeable premium rate prescribed under this section--
        ``(1) is a rate which is not less than the applicable estimated 
    risk premium rate under section 4014(a)(1) of this title, and
        ``(2) includes any amount for administrative expenses of 
    carrying out the flood insurance program which have been estimated 
    under clause (ii) of section 4014(a)(1)(B) of this title,
a sum equal to such amount shall be paid to the Director, and he shall 
deposit such sum in the National Flood Insurance Fund established under 
section 4017 of this title.''
    1983--Subsecs. (a), (c), (d). Pub. L. 98-181 substituted 
``Director'' for ``Secretary'' wherever appearing.
    1973--Subsec. (c). Pub. L. 93-234 substituted ``started after 
December 31, 1974, or the effective date of the initial rate map 
published by the Secretary under paragraph (2) of section 4101 of this 
title for the area in which such property is located, whichever is 
later'' for ``started after the identification of the area in which such 
property is located has been published under paragraph (1) of section 
4101 of this title''.


                         Limitation on Premiums

    Section 2302(e)(5) of Pub. L. 101-508 provided that, notwithstanding 
section 541(d) of Pub. L. 100-242, formerly set out below, premium rates 
charged for flood insurance under any program established pursuant to 
this chapter could be increased by more than 10 percent during fiscal 
year 1991, with certain exceptions.
    Pub. L. 100-242, title V, Sec. 541(d), Feb. 5, 1988, 101 Stat. 1939, 
as amended by Pub. L. 101-137, Sec. 1(d), Nov. 3, 1989, 103 Stat. 824; 
Pub. L. 101-508, title II, Sec. 2302(c), Nov. 5, 1990, 104 Stat. 1388-
23, limited increases in premium rates charged for flood insurance under 
programs established pursuant to this chapter during period beginning 
Feb. 5, 1988, and ending Sept. 30, 1995, to prorated annual rate of 10 
percent, prior to repeal by Pub. L. 103-325, title V, Sec. 572(b), Sept. 
23, 1994, 108 Stat. 2278.
    Section 451(g)(1) of Pub. L. 98-181 provided that premium rates 
charged for flood insurance under any program established pursuant to 
this chapter could not be increased during the period beginning Nov. 30, 
1983, and ending Sept. 30, 1984.


                   Termination of Advisory Committees

    Advisory committees in existence on Jan. 5, 1973, to terminate not 
later than the expiration of the 2-year period following Jan. 5, 1973, 
unless, in the case of a committee established by the President or an 
officer of the Federal Government, such committee is renewed by 
appropriate action prior to the expiration of such 2-year period, or in 
the case of a committee established by the Congress, its duration is 
otherwise provided by law. Advisory committees established after Jan. 5, 
1973, to terminate not later than the expiration of the 2-year period 
beginning on the date of their establishment, unless, in the case of a 
committee established by the President or an officer of the Federal 
Government, such committee is renewed by appropriate action prior to the 
expiration of such 2-year period, or in the case of a committee 
established by the Congress, its duration is otherwise provided by law. 
See section 14 of Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 776, set out in 
the Appendix to Title 5, Government Organization and Employees.

                  Section Referred to in Other Sections

    This section is referred to in sections 4013, 4017, 4020, 4022, 4054 
of this title.
