42 U.s.c. 4001

§ 4001

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Sec.

4025.
4026.
4027.
4028.

Flood insurance advisory committee.
Expiration of program.
Biennial report to President.
John H. Chafee Coastal Barrier Resources
System.
Colorado River Floodway.
Grants for repetitive insurance claims properties.
Treatment of certain payments.

4029.
4030.
4031.

SUBCHAPTER II—ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM
4041.

Implementation of program.
PART A—INDUSTRY PROGRAM WITH FEDERAL
FINANCIAL ASSISTANCE

4051.

Industry flood insurance pool; requirements
for participation.
Agreements with flood insurance pool.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction.
Premium equalization payments; basis; aggregate amount; establishment of designated periods.
Reinsurance coverage.
Emergency implementation of flood insurance program; applicability of other provisions of law.

4052.
4053.
4054.

4055.
4056.

PART B—GOVERNMENT PROGRAM WITH INDUSTRY
ASSISTANCE
4071.

Federal operation of program; determination
by Director; fiscal agents; report to Congress.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction.

4072.

PART C—GENERAL PROVISIONS
4081.

Services by insurance industry; contracts,
agreements, or other arrangements.
Use of insurance pool, companies, or other
private organizations for certain payments.
Settlement of claims; arbitration.
Records and audits.

4082.
4083.
4084.

SUBCHAPTER III—COORDINATION OF FLOOD INSURANCE
WITH
LAND-MANAGEMENT
PROGRAMS IN FLOOD-PRONE AREAS
4101.
4102.
4102a
4103.
4104.
4104a.
4104b.
4104c.
4104d.
4105.
4106.
4107.

Identification of flood-prone areas.
Criteria for land management and use.
Pilot program for mitigation of severe repetitive loss properties.
Repealed.
Flood elevation determinations.
Notice requirements.
Standard hazard determination forms.
Mitigation assistance.
National Flood Mitigation Fund.
Disaster mitigation requirements; notification to flood-prone areas.
Nonparticipation in flood insurance program.
Consultation with local officials; scope.

SUBCHAPTER IV—GENERAL PROVISIONS
4121.
4122.

4123.
4124.
4125.
4126.
4127.
4128.
4129.

Definitions.
Studies of other natural disasters; cooperation and consultation with other departments and agencies.
Advance payments.
Applicability of fiscal controls.
Finality of certain financial transactions.
Administrative expenses.
Authorization of appropriations; availability.
Rules and regulations.
Federal Insurance Administrator; establishment of position.

Page 5148

§ 4001. Congressional findings and declaration of
purpose
(a) Necessity and reasons for flood insurance
program
The Congress finds that (1) from time to time
flood disasters have created personal hardships
and economic distress which have required unforeseen disaster relief measures and have
placed an increasing burden on the Nation’s resources; (2) despite the installation of preventive
and protective works and the adoption of other
public programs designed to reduce losses
caused by flood damage, these methods have not
been sufficient to protect adequately against
growing exposure to future flood losses; (3) as a
matter of national policy, a reasonable method
of sharing the risk of flood losses is through a
program of flood insurance which can complement and encourage preventive and protective measures; and (4) if such a program is initiated and carried out gradually, it can be expanded as knowledge is gained and experience is
appraised, thus eventually making flood insurance coverage available on reasonable terms and
conditions to persons who have need for such
protection.
(b) Participation of Federal Government in flood
insurance program carried out by private insurance industry
The Congress also finds that (1) many factors
have made it uneconomic for the private insurance industry alone to make flood insurance
available to those in need of such protection on
reasonable terms and conditions; but (2) a program of flood insurance with large-scale participation of the Federal Government and carried
out to the maximum extent practicable by the
private insurance industry is feasible and can be
initiated.
(c) Unified national program for flood plain management
The Congress further finds that (1) a program
of flood insurance can promote the public interest by providing appropriate protection against
the perils of flood losses and encouraging sound
land use by minimizing exposure of property to
flood losses; and (2) the objectives of a flood insurance program should be integrally related to
a unified national program for flood plain management and, to this end, it is the sense of Congress that within two years following the effective date of this chapter the President should
transmit to the Congress for its consideration
any further proposals necessary for such a unified program, including proposals for the allocation of costs among beneficiaries of flood protection.
(d) Authorization of flood insurance program;
flexibility in program
It is therefore the purpose of this chapter to
(1) authorize a flood insurance program by
means of which flood insurance, over a period of
time, can be made available on a nationwide
basis through the cooperative efforts of the Federal Government and the private insurance industry, and (2) provide flexibility in the program
so that such flood insurance may be based on
workable methods of pooling risks, minimizing

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TITLE 42—THE PUBLIC HEALTH AND WELFARE

costs, and distributing burdens equitably among
those who will be protected by flood insurance
and the general public.
(e) Land use adjustments by State and local governments; development of proposed future
construction; assistance of lending and credit institutions; relation of Federal assistance
to all flood-related programs; continuing
studies
It is the further purpose of this chapter to (1)
encourage State and local governments to make
appropriate land use adjustments to constrict
the development of land which is exposed to
flood damage and minimize damage caused by
flood losses, (2) guide the development of proposed future construction, where practicable,
away from locations which are threatened by
flood hazards, (3) encourage lending and credit
institutions, as a matter of national policy, to
assist in furthering the objectives of the flood
insurance program, (4) assure that any Federal
assistance provided under the program will be
related closely to all flood-related programs and
activities of the Federal Government, and (5) authorize continuing studies of flood hazards in
order to provide for a constant reappraisal of
the flood insurance program and its effect on
land use requirements.
(f) Mudslides
The Congress also finds that (1) the damage
and loss which results from mudslides is related
in cause and similar in effect to that which results directly from storms, deluges, overflowing
waters, and other forms of flooding, and (2) the
problems involved in providing protection
against this damage and loss, and the possibilities for making such protection available
through a Federal or federally sponsored program, are similar to those which exist in connection with efforts to provide protection
against damage and loss caused by such other
forms of flooding. It is therefore the further purpose of this chapter to make available, by means
of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood
insurance program, protection against damage
and loss resulting from mudslides that are
caused by accumulations of water on or under
the ground.
(Pub. L. 90–448, title XIII, § 1302, Aug. 1, 1968, 82
Stat. 572; Pub. L. 91–152, title IV, § 409(a), Dec. 24,
1969, 83 Stat. 397; Pub. L. 93–234, title I, § 108(a),
Dec. 31, 1973, 87 Stat. 979; Pub. L. 103–325, title V,
§ 552(d), Sept. 23, 1994, 108 Stat. 2269.)
REFERENCES IN TEXT
For effective date of this chapter, referred to in subsec. (c), see section 1377 of Pub. L. 90–448, set out as an
Effective Date note below.
This chapter, referred to in subsecs. (d) to (f), was in
the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out below and Tables.

§ 4001

(1) the damage and loss which may result from the erosion and undermining of shorelines by waves or currents in lakes and other bodies of water exceeding anticipated cyclical levels is related in cause and similar
in effect to that which results directly from storms,
deluges, overflowing waters, and other forms of flooding, and (2) the problems involved in providing protection against this damage and loss, and the possibilities
for making such protection available through a Federal
or federally sponsored program, are similar to those
which exist in connection with efforts to provide protection against damage and loss caused by such other
forms of flooding. It is therefore the further purpose of
this chapter to make available, by means of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood insurance program, protection
against damage and loss resulting from the erosion and
undermining of shorelines by waves or currents in
lakes and other bodies of water exceeding anticipated
cyclical levels.’’
1973—Subsec. (g). Pub. L. 93–234 added subsec. (g).
1969—Subsec. (f). Pub. L. 91–152 added subsec. (f).
EFFECTIVE DATE
Section 1377 of title XIII of Pub. L. 90–448 provided
that: ‘‘This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and
2415 to 2421 of this title, and enacting provisions set out
as notes under this section] shall take effect one hundred and twenty days following the date of its enactment [Aug. 1, 1968], except that the Secretary, on the
basis of a finding that conditions exist necessitating
the prescribing of an additional period, may prescribe
a later effective date which in no event shall be more
than one hundred and eighty days following such date
of enactment.’’
SHORT TITLE OF 2010 AMENDMENT
Pub. L. 111–250, § 1, Sept. 30, 2010, 124 Stat. 2630, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title] may be cited as the ‘National Flood Insurance Program Reextension Act of 2010’.’’
Pub. L. 111–196, § 1, July 2, 2010, 124 Stat. 1352, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title and enacting provisions set out as a note
under section 4016 of this title] may be cited as the ‘National Flood Insurance Program Extension Act of
2010’.’’
SHORT TITLE OF 2006 AMENDMENT
Pub. L. 109–208, § 1, Mar. 23, 2006, 120 Stat. 317, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Enhanced Borrowing Authority Act of 2006’.’’
SHORT TITLE OF 2005 AMENDMENTS
Pub. L. 109–106, § 1, Nov. 21, 2005, 119 Stat. 2288, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Further Enhanced Borrowing Authority Act
of 2005’.’’
Pub. L. 109–65, § 1, Sept. 20, 2005, 119 Stat. 1998, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Enhanced Borrowing Authority Act of 2005’.’’
SHORT TITLE OF 2004 AMENDMENT
Pub. L. 108–264, § 1(a), June 30, 2004, 118 Stat. 712, provided that: ‘‘This Act [enacting sections 4030 and 4102a
of this title, amending sections 4011, 4015 to 4017, 4022,
4026, 4056, 4104c, 4104d, 4121, and 4127 of this title, and
enacting provisions set out as notes under this section
and sections 4011 and 4101 of this title] may be cited as
the ‘Bunning-Bereuter-Blumenauer Flood Insurance
Reform Act of 2004’.’’

AMENDMENTS

SHORT TITLE OF 2003 AMENDMENTS

1994—Subsec. (g). Pub. L. 103–325 struck out subsec.
(g) which read as follows: ‘‘The Congress also finds that

Pub. L. 108–171, § 1, Dec. 6, 2003, 117 Stat. 2064, provided
that: ‘‘This Act [amending sections 4016, 4026, 4056, and

§ 4002

TITLE 42—THE PUBLIC HEALTH AND WELFARE

4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2004’.’’
Pub. L. 108–3, § 1, Jan. 13, 2003, 117 Stat. 7, provided
that: ‘‘This Act [amending sections 4016, 4026, 4056, and
4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2003’.’’
SHORT TITLE OF 1994 AMENDMENT
Section 501 of title V of Pub. L. 103–325 provided that:
‘‘This title [enacting sections 4104b to 4104d and 5154a of
this title, amending this section, sections 4003, 4011,
4012a, 4013, 4015, 4017, 4022, 4026, 4027, 4029, 4056, 4081, 4101,
4104a, 4106, 4121, and 5154 of this title, and sections 1784,
1820, 3305, and 4521 of Title 12, Banks and Banking, repealing section 4103 of this title, enacting provisions
set out as notes under this section and sections 4011,
4013, 4014, 4101 to 4103, and 4104c of this title, and repealing provisions set out as a note under section 4015 of
this title] may be cited as the ‘National Flood Insurance Reform Act of 1994’.’’
SHORT TITLE OF 1973 AMENDMENT
Pub. L. 93–234, § 1, Dec. 31, 1973, 87 Stat. 975, provided:
‘‘That this Act [enacting sections 4002, 4003, 4012a, 4104,
4105 to 4107, and 4128 of this title, amending this section, sections 4013 to 4016, 4026, 4054, 4056, 4101, and 4121
of this title, and sections 24 and 1709–1 of Title 12,
Banks and Banking, and repealing section 4021 of this
title] may be cited as the ‘Flood Disaster Protection
Act of 1973’.’’
SHORT TITLE
Section 1301 of title XIII of Pub. L. 90–448 provided
that: ‘‘This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and
2415 to 2421 of this title, and enacting provisions set out
as a note under this section] may be cited as the ‘National Flood Insurance Act of 1968’.’’
REGULATIONS
Pub. L. 103–325, title V, § 583, Sept. 23, 1994, 108 Stat.
2287, as amended by Pub. L. 109–295, title VI, § 612(c),
Oct. 4, 2006, 120 Stat. 1410, provided that: ‘‘The Administrator of the Federal Emergency Management Agency
and any appropriate Federal agency may each issue
any regulations necessary to carry out the applicable
provisions of this title [see Short Title of 1994 Amendment note above] and the applicable amendments made
by this title.’’
[For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.]
[For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]
EVALUATION OF EROSION HAZARDS
Pub. L. 103–325, title V, § 577(a)–(g), Sept. 23, 1994, 108
Stat. 2281–2283, required the Director of the Federal
Emergency Management Agency to submit a report no
later than two years after Sept. 23, 1994, evaluating erosion hazards and estimating the impact of erosion on
flood insurance claims.

Page 5150

RELATION OF TITLE V OF PUB. L. 103–325 TO STATE
AND LOCAL LAWS
Section 584 of title V of Pub. L. 103–325 provided that:
‘‘This title [see Short Title of 1994 Amendment note
above] and the amendments made by this title may not
be construed to preempt, annul, alter, amend, or exempt any person from compliance with any law, ordinance, or regulation of any State or local government
with respect to land use, management, or control.’’
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951, set out as a note under section 4321 of this
title.

§ 4002. Additional Congressional findings and
declaration of purpose
(a) The Congress finds that—
(1) annual losses throughout the Nation from
floods and mudslides are increasing at an
alarming rate, largely as a result of the accelerating development of, and concentration of
population in, areas of flood and mudslide hazards;
(2) the availability of Federal loans, grants,
guaranties, insurance, and other forms of financial assistance are often determining factors in the utilization of land and the location
and construction of public and of private industrial, commercial, and residential facilities;
(3) property acquired or constructed with
grants or other Federal assistance may be exposed to risk of loss through floods, thus frustrating the purpose for which such assistance
was extended;
(4) Federal instrumentalities insure or
otherwise provide financial protection to
banking and credit institutions whose assets
include a substantial number of mortgage
loans and other indebtedness secured by property exposed to loss and damage from floods
and mudslides;
(5) the Nation cannot afford the tragic losses
of life caused annually by flood occurrences,
nor the increasing losses of property suffered
by flood victims, most of whom are still inadequately compensated despite the provision of
costly disaster relief benefits; and
(6) it is in the public interest for persons already living in flood-prone areas to have both
an opportunity to purchase flood insurance
and access to more adequate limits of coverage, so that they will be indemnified, for
their losses in the event of future flood disasters.
(b) The purpose of this Act, therefore, is to—
(1) substantially increase the limits of coverage authorized under the national flood insurance program;
(2) provide for the expeditious identification
of, and the dissemination of information concerning, flood-prone areas;
(3) require States or local communities, as a
condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plan ordinances with effective enforcement provisions