(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
Multiple Peril Insurance Act of 2009 - (Sec. 2) Amends the National Flood Insurance Act of 1968 to require the national flood insurance program to enable the purchase of multiperil coverage and optional separate windstorm coverage to protect against loss resulting from physical damage or loss of real or related personal property located in the United States.
Defines windstorm as any hurricane, tornado, cyclone, typhoon, or other wind event.
Restricts multiperil coverage to areas (or their subdivisions) where an appropriate public body has adopted adequate mitigation measures, including effective enforcement provisions, which the Director of the Federal Emergency Management Agency (FEMA) finds are consistent with the criteria for construction described in the International Code Council building codes relating to wind mitigation.
Prohibits provision of multiperil coverage to any structure (or related personal property ) covered, at any time, by flood insurance under the Act.
Requires maintenance of flood insurance coverage under this Act as a prerequisite to windstorm coverage of any structure (or related personal property). States that separate windstorm coverage only covers losses from physical damages from windstorm.
Prescribes the nature and terms of coverage and actuarial rates.
(Sec. 3) Prohibits duplicative coverage.
(Sec. 4) Prohibits new multiperil coverage for property declared by a governmental authority to be in violation of state or local laws, regulations, or ordinances intended to reduce windstorm damage.
(Sec. 5) Instructs the Director to: (1) carry out studies and investigations to determine measures for wind hazard prevention; and (2) provide technical assistance to state, interstate, and local governmental agencies to encourage adoption and enforcement of laws, regulations, and ordinances relating to the orderly development and use of areas subject to damage from windstorm risks, and zoning building codes, building permits, and subdivision and other building restrictions for such areas.
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1264 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1264
To amend the National Flood Insurance Act of 1968 to provide for the
national flood insurance program to make available multiperil coverage
for damage resulting from windstorms or floods, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 3, 2009
Mr. Taylor (for himself, Ms. Waters, Mr. Melancon, Mr. Scalise, Mr.
Childers, Mr. Hastings of Florida, Ms. Ros-Lehtinen, Ms. Jackson-Lee of
Texas, Mr. Barrow, Mrs. Maloney, Mrs. Christensen, Mr. Berry, Mr.
Cleaver, Mr. Cohen, and Ms. Kilpatrick of Michigan) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To amend the National Flood Insurance Act of 1968 to provide for the
national flood insurance program to make available multiperil coverage
for damage resulting from windstorms or floods, and for other purposes.
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 ``Multiple Peril Insurance Act of
2009''.
SEC. 2. COVERAGE FOR WINDSTORMS.
Section 1304 of the National Flood Insurance Act of 1968 (42 U.S.C.
4011) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Multiperil Coverage for Damage From Flood or Windstorm and
Separate Coverage for Windstorm.--
``(1) In general.--The national flood insurance program
established pursuant to subsection (a) shall enable the
purchase of the following coverages:
``(A) Multiperil coverage.--Optional insurance
against loss resulting from physical damage to or loss
of real property or personal property related thereto
located in the United States arising from any flood or
windstorm, subject to the limitations in this
subsection and section 1306(b); and
``(B) Separate windstorm coverage.--Optional
insurance against loss resulting from physical damage
to or loss of real property or personal property
related thereto located in the United States arising
from any windstorm, subject to the limitations in this
subsection and section 1306(b).
``(2) Community participation requirement.--Multiperil
coverage pursuant to paragraph (1)(A) and windstorm coverage
pursuant to paragraph (1)(B) may not be provided in any area
(or subdivision thereof) unless an appropriate public body
shall have adopted adequate mitigation measures (with effective
enforcement provisions) which the Director finds are consistent
with the criteria for construction described in the
International Code Council building codes relating to wind
mitigation.
``(3) Relationship to flood insurance coverage.--
``(A) Prohibition against duplicative coverage.--
Multiperil coverage pursuant to paragraph (1)(A) may
not be provided with respect to any structure (or the
personal property related thereto) for any period
during which such structure is covered, at any time, by
flood insurance coverage made available under this
title.
``(B) Requirement to maintain flood insurance
coverage.--Windstorm coverage pursuant to paragraph
(1)(B) may be provided only with respect to a structure
(and the personal property related thereto) that is
covered by flood insurance coverage made available
under this title and only during the period that such
structure (and personal property) are so covered.
``(4) Nature of coverage.--
``(A) Multiperil coverage.--Multiperil coverage
pursuant to paragraph (1)(A) shall--
``(i) cover losses only from physical
damage resulting from flooding or windstorm;
and
``(ii) provide for approval and payment of
claims under such coverage upon proof that such
loss must have resulted from either windstorm
or flooding, but shall not require for approval
and payment of a claim that the specific cause
of the loss, whether windstorm or flooding, be
distinguished or identified.
``(B) Separate windstorm coverage.--Windstorm
coverage pursuant to paragraph (1)(B) shall--
``(i) cover losses only from physical
damage resulting from windstorm; and
``(ii) provide for approval and payment of
claims under such coverage or under the flood
insurance coverage required to be maintained
under paragraph (3)(B) upon a determination
that such loss from windstorm or flooding,
respectively, but shall not require for
approval and payment of a claim that the
insured distinguish or identify the specific
cause of the loss, whether windstorm or
flooding.
``(5) Actuarial rates.--Multiperil coverage pursuant to
paragraph (1)(A) and windstorm coverage pursuant to paragraph
(1)(B) shall be made available for purchase for a property only
at chargeable risk premium rates that, based on consideration
of the risks involved and accepted actuarial principles, and
including operating costs and allowance and administrative
expenses, are required in order to make such coverage available
on an actuarial basis for the type and class of properties
covered.
``(6) Terms of coverage.--The Director shall, after
consultation with persons and entities referred to in section
1306(a), provide by regulation for the general terms and
conditions of insurability applicable to properties eligible
for multiperil coverage pursuant to paragraph (1)(A) and such
terms and conditions applicable to properties eligible for
windstorm coverage pursuant to paragraph (1)(B), subject to the
provisions of this subsection, including--
``(A) the types, classes, and locations of any such
properties which shall be eligible for such coverages,
which shall include residential and nonresidential
properties;
``(B) subject to paragraph (7), the nature and
limits of loss or damage in any areas (or subdivisions
thereof) which may be covered by such coverages;
``(C) the classification, limitation, and rejection
of any risks which may be advisable;
``(D) appropriate minimum premiums;
``(E) appropriate loss deductibles; and
``(F) any other terms and conditions relating to
insurance coverage or exclusion that may be necessary
to carry out this subsection.
``(7) Limitations on amount of coverage.--
``(A) Multiperil coverage.--The regulations issued
pursuant to paragraph (6) shall provide that the
aggregate liability under multiperil coverage made
available under this subsection shall not exceed the
lesser of the replacement cost for covered losses or
the following amounts, as applicable:
``(i) Residential structures.--In the case
of residential properties, which shall include
structures containing multiple dwelling units
that are made available for occupancy by rental
(notwithstanding any treatment or
classification of such properties for purposes
of section 1306(b))--
``(I) for any single-family
dwelling, $500,000;
``(II) for any structure containing
more than one dwelling unit, $500,000
for each separate dwelling unit in the
structure, which limit, in the case of
such a structure containing multiple
dwelling units that are made available
for occupancy by rental, shall be
applied so as to enable any insured or
applicant for insurance to receive
coverage for the structure up to a
total amount that is equal to the
product of the total number of such
rental dwelling units in such property
and the maximum coverage limit per
dwelling unit specified in this clause;
and
``(III) $150,000 per dwelling unit
for--
``(aa) any contents related
to such unit; and
``(bb) any necessary
increases in living expenses
incurred by the insured when
losses from flooding or
windstorm make the residence
unfit to live in.
``(ii) Nonresidential properties.--In the
case of nonresidential properties (including
church properties)--
``(I) $1,000,000 for any single
structure; and
``(II) $750,000 for--
``(aa) any contents related
to such structure; and
``(bb) in the case of any
nonresidential property that is
a business property, any losses
resulting from any partial or
total interruption of the
insured's business caused by
damage to, or loss of, such
property from flooding or
windstorm, except that for
purposes of such coverage,
losses shall be determined
based on the profits the
covered business would have
earned, based on previous
financial records, had the
flood or windstorm not
occurred.
``(B) Separate windstorm coverage.--The regulations
issued pursuant to paragraph (6) shall provide that
windstorm coverage pursuant to paragraph (1)(B) for a
property shall not exceed the amount such that the
aggregate liability under flood insurance coverage
required to be maintained under paragraph (3)(B) for
the property and such windstorm coverage for the
property does not exceed the applicable coverage limit
for the property set forth in subparagraph (A) of this
paragraph.
``(8) Effective date.--This subsection shall take effect
on, and shall apply beginning on, the expiration of the 6-month
period that begins on the date of the enactment of the Multiple
Peril Insurance Act of 2009.''.
SEC. 3. PROHIBITION AGAINST DUPLICATIVE COVERAGE.
The National Flood Insurance Act of 1968 is amended by inserting
after section 1313 (42 U.S.C. 4020) the following new section:
``prohibition against duplicative coverage
``Sec. 1314. Flood insurance under this title may not be provided
with respect to any structure (or the personal property related
thereto) for any period during which such structure is covered, at any
time, by multiperil insurance coverage made available pursuant to
section 1304(c)(1)(A).''.
SEC. 4. COMPLIANCE WITH STATE AND LOCAL LAW.
Section 1316 of the National Flood Insurance Act of 1968 (42 U.S.C.
4023) is amended--
(1) by inserting ``(a) Flood Protection Measures.--''
before ``No new''; and
(2) by adding at the end the following new subsection:
``(b) Windstorm Protection Measures.--No new multiperil coverage
shall be provided under section 1304(c) for any property that the
Director finds has been declared by a duly constituted State or local
zoning authority, or other authorized public body to be in violation of
State or local laws, regulations, or ordinances, which are intended to
reduce damage caused by windstorms.''.
SEC. 5. CRITERIA FOR LAND MANAGEMENT AND USE.
Section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C.
4102) is amended by adding at the end the following new subsection:
``(d) Windstorms.--
``(1) Studies and investigations.--The Director shall carry
out studies and investigations under this section to determine
appropriate measures in wind events as to wind hazard
prevention, and may enter into contracts, agreements, and other
appropriate arrangements to carry out such activities. Such
studies and investigations shall include laws, regulations, and
ordinance relating to the orderly development and use of areas
subject to damage from windstorm risks, and zoning building
codes, building permits, and subdivision and other building
restrictions for such areas.
``(2) Coordination with state and local governments.--The
Director shall work closely with and provide any necessary
technical assistance to State, interstate, and local
governmental agencies, to encourage the application of measures
identified pursuant to paragraph (1) and the adoption and
enforcement of such measures.''.
SEC. 6. DEFINITIONS.
Section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C.
4121) is amended--
(1) in paragraph (14), by striking ``and'' at the end;
(2) in paragraph (15) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(16) the term `windstorm' means any hurricane, tornado,
cyclone, typhoon, or other wind event.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by the Yeas and Nays: 40 - 25.
Reported by the Committee on Financial Services. H. Rept. 111-551.
Reported by the Committee on Financial Services. H. Rept. 111-551.
Placed on the Union Calendar, Calendar No. 315.
Rules Committee Resolution H. Res. 1549 Reported to House. Rule provides for consideration of H.R. 1264 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI.
Rule H. Res. 1549 passed House.
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