§1436c — Title 42 The Public Health and Welfare | U.S. Code

Summary

Beginning October 28, 1991, public housing agencies and Indian housing authorities may buy insurance from nonprofit insurance companies they own and control, if those companies are approved by the Secretary. They do not have to use competitive bidding for those purchases. The Secretary must write rules, after public notice and comment under subchapter II of chapter 5 of title 5, and those rules must take effect no later than one year after October 28, 1991. To approve a nonprofit insurer, the Secretary must make sure it has enough surplus money for likely losses, reliable accounting, sound actuarial plans, and experienced insurance staff. If a nonprofit is regulated by a State insurance department, the Secretary will not limit its investments; if not, the Secretary will set similar investment rules. No new nonprofit insurers may be approved until the standards are final. The Secretary may only revoke prior approval for cause and after a due process hearing. Until the Department of Housing and Urban Development issues rules about insurance for personal injury liability from testing and removing lead-based paint in federally subsidized public and Indian housing (including liability for contractors, architects, and engineers), those authorities may buy such insurance as a modernization capital expense. That insurance must be chosen through competition and the authority must certify that the policy reasonably covers the liability risks, given the testing, abatement, and related management and quality assurance duties.

Title 42, §1436c

The Public Health and Welfare — Source: USLM XML via OLRC

On and after October 28, 1991, notwithstanding any other provision of State or Federal law, regulation or other requirement, any public housing agency or Indian housing authority that purchases any line of insurance from a nonprofit insurance entity, owned and controlled by public housing agencies or Indian housing authorities, and approved by the Secretary, may purchase such insurance without regard to competitive procurement. On and after October 28, 1991, the Secretary shall establish standards as set forth herein, by regulation, adopted after notice and comment rulemaking pursuant to subchapter II of chapter 5 of title 5, which will become effective not later than one year from October 28, 1991. On and after October 28, 1991, in establishing standards for approval of such nonprofit insurance entities, the Secretary shall be assured that such entities have sufficient surplus capital to meet reasonably expected losses, reliable accounting systems, sound actuarial projections, and employees experienced in the insurance industry. The Secretary shall not place restrictions on the investment of funds of any such entity that is regulated by the insurance department of any State that describes the types of investments insurance companies licensed in such State may make. With regard to such entities that are not so regulated, the Secretary shall establish investment guidelines that are comparable to State law regulating the investments of insurance companies. On and after October 28, 1991, the Secretary shall not approve additional nonprofit insurance entities until such standards have become final, nor shall the Secretary revoke the approval of any nonprofit insurance entity previously approved by the Department unless for cause and after a due process hearing. On and after October 28, 1991, until the Department of Housing and Urban Development has adopted regulations specifying the nature and quality of insurance covering the potential personal injury liability exposure of public housing authorities and Indian housing authorities (and their contractors, including architectural and engineering services) as a result of testing and abatement of lead-based paint in federally subsidized public and Indian housing units, said authorities shall be permitted to purchase insurance for such risk, as an allowable expense against amounts available for capital improvements (modernization): Provided, That such insurance is competitively selected and that coverage provided under such policies, as certified by the authority, provides reasonable coverage for the risk of liability exposure, taking into consideration the potential liability concerns inherent in the testing and abatement of lead-based paint, and the managerial and quality assurance responsibilities associated with the conduct of such activities.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Herein, referred to in text, probably means Pub. L. 102–139, Oct. 28, 1991, 105 Stat. 736, known as the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992. For complete classification of this Act to the Code, see Tables. Codification In the second undesignated par., “subchapter II of chapter 5 of title 5” was substituted for “the Administrative Procedures Act” on authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees. Section was enacted as part of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992, and not as part of the United States Housing Act of 1937 which comprises this chapter.

§1436c Insurance for public housing agencies and Indian housing authorities

Summary

Title 42, §1436c

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata