[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2831 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2831
To require the National Flood Insurance Program to accept mid-term
cancellations of flood insurance coverage if the insured acquires
alternative coverage.
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IN THE SENATE OF THE UNITED STATES
September 23, 2021
Mr. Lee (for himself and Mr. Scott of Florida) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
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A BILL
To require the National Flood Insurance Program to accept mid-term
cancellations of flood insurance coverage if the insured acquires
alternative coverage.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Flood Insurance Flexibility Act''.
SEC. 2. REFUND OF PREMIUMS.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) is amended by inserting after section 1307 (42 U.S.C.
4014) the following:
``SEC. 1307A. REFUND OF PREMIUMS.
``(a) Definitions.--In this section--
``(1) the term `new alternate policy', with respect to an
NFIP policy, means another policy for duplicate flood insurance
coverage for the same property obtained from a source other
than the National Flood Insurance Program under this title; and
``(2) the term `NFIP policy' means a policy for flood
insurance coverage for a property that is made available under
this title.
``(b) Required Refund.--Notwithstanding any other provision of law,
if at any time an insured under an NFIP policy cancels the policy
because a new alternate policy has been obtained, the Administrator
shall refund to the former insured a portion of the premiums paid for
the coverage made available under this title, as determined consistent
with industry practice according to the portion of the term of the NFIP
policy for which coverage was in effect, but only if a copy of the
declarations page of the new alternate policy is provided to the
Administrator.
``(c) Effective Date of Cancellation.--For purposes of this
section, a cancellation of an NFIP policy for the reason specified in
subsection (b) shall be effective--
``(1) on the effective date of the new alternate policy, if
the Administrator receives the request for the cancellation
during the 180-day period beginning on the effective date of
the new alternate policy; or
``(2) on the date of the receipt by the Administrator of
the request for cancellation, if the Administrator receives the
request after the 180-day period beginning on the effective
date of the new alternate policy.''.
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