HR-2875 : Still Just a Bill

National Flood Insurance Program Administrative Reform Act of 2017

This bill amends the National Flood Insurance Act of 1968 to direct the Federal Emergency Management Agency (FEMA) to revise the appeals process for National Flood Insurance Program (NFIP) policyholders seeking review of a flood insurance claim denial by their insurer. The bill also establishes penalties for "Write Your Own" companies that knowingly underpay NFIP claims. (A Write Your Own company writes and services federal standard flood insurance policies in its own name.) Civil enforcement actions, penalties, and suspension from the program may result from fraud and false statements in connection with a flood insurance claim under NFIP.

Claims under NFIP must be approved or denied no later than 90 days after the claim is made, with provisions for an extension in extraordinary cases.

The bill gives FEMA litigation oversight, strategy authority, and substitution powers in litigation conducted by Write Your Own companies. FEMA may not hire in connection with NFIP any disbarred or suspended attorney.

FEMA must make additional coverage available under its Increased Cost of Compliance program. Currently, the program provides coverage to insure the cost of mitigating future flood damage to an NFIP-insured structure that has been substantially or repetitively damaged by floods.

This bill directs FEMA to ensure sufficient staff for the Flood Insurance Advocate, authorizes FEMA to credit reserve funds to the National Flood Insurance Fund, and establishes pilot programs and committees.

The Government Accountability Office must report on claims adjustment practices under NFIP and NFIP coverage of earth movement and subsidence.