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Title 42 — The Public Health and WelfareRelease 119-73

§4051 Industry flood insurance pool; requirements for participation

Title 42 › Chapter CHAPTER 50— - NATIONAL FLOOD INSURANCE › Subchapter SUBCHAPTER II— - ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM › Part Part A— - Industry Program With Federal Financial Assistance › § 4051

Last updated Apr 6, 2026|Official source

Summary

The Administrator can help and encourage insurance companies to join together in a pool so they can offer the flood insurance allowed under subchapter I. The pool may also agree to take on financial responsibility for claims, including serving as reinsurance, using federal help so the companies can assume a fair share of paying losses. The Administrator can set rules for who may join the pool, such as minimum capital, surplus, or asset requirements.

Full Legal Text

Title 42, §4051

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

(a)The Administrator is authorized to encourage and otherwise assist any insurance companies and other insurers which meet the requirements prescribed under subsection (b) to form, associate, or otherwise join together in a pool—
(1)in order to provide the flood insurance coverage authorized under subchapter I; and
(2)for the purpose of assuming, including as reinsurance of coverage provided by the flood insurance program, on such terms and conditions as may be agreed upon, such financial responsibility as will enable such companies and other insurers, with the Federal financial and other assistance available under this chapter, to assume a reasonable proportion of responsibility for the adjustment and payment of claims for losses under the flood insurance program.
(b)In order to promote the effective administration of the flood insurance program under this part, and to assure that the objectives of this chapter are furthered, the Administrator is authorized to prescribe appropriate requirements for insurance companies and other insurers participating in such pool including, but not limited to, minimum requirements for capital or surplus or assets.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a)(2) and (b), 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 under section 4001 of this title and Tables.

Amendments

2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director” in introductory provisions. Subsec. (a)(2). Pub. L. 112–141, § 100232(d)(1), inserted “, including as reinsurance of coverage provided by the flood insurance program” before “, on such terms”. Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director”. 1983—Pub. L. 98–181 substituted “Director” for “Secretary” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.

Transfer of Functions

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 section 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.

Reference

Citations & Metadata

Citation

42 U.S.C. § 4051

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73