
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: 42USC4055]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
   SUBCHAPTER II--ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE 
                                 PROGRAM
 
       Part A--Industry Program With Federal Financial Assistance
 
Sec. 4055. Reinsurance coverage


(a) Availability for excess losses

    The Director is authorized to take such action as may be necessary 
in order to make available, to the pool formed or otherwise created 
under section 4051 of this title, reinsurance for losses (due to claims 
for proved and approved losses covered by flood insurance) which are in 
excess of losses assumed by such pool in accordance with the excess loss 
agreement entered into under subsection (c) of this section.

(b) Availability pursuant to contract, agreement, or other arrangement; 
        payment of premium, fee, or other charge

    Such reinsurance shall be made available pursuant to contract, 
agreement, or any other arrangement, in consideration of such payment of 
a premium, fee, or other charge as the Director finds necessary to cover 
anticipated losses and other costs of providing such reinsurance.

(c) Excess loss agreement; negotiation

    The Director is authorized to negotiate an excess loss agreement, 
from time to time, under which the amount of flood insurance retained by 
the pool, after ceding reinsurance, shall be adequate to further the 
purposes of this chapter, consistent with the objective of maintaining 
appropriate financial participation and risk sharing to the maximum 
extent practicable on the part of participating insurance companies and 
other insurers.

(d) Submission of excess losses on portfolio basis

    All reinsurance claims for losses in excess of losses assumed by the 
pool shall be submitted on a portfolio basis by such pool in accordance 
with terms and conditions established by the Director.

(Pub. L. 90-448, title XIII, Sec. 1335, Aug. 1, 1968, 82 Stat. 583; Pub. 
L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.)


                               Amendments

    1983--Pub. L. 98-181 substituted ``Director'' for ``Secretary'' 
wherever appearing.

                  Section Referred to in Other Sections

    This section is referred to in sections 4017, 4052, 4054, 4127 of 
this title.
