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Title 42 — The Public Health and WelfareRelease 119-73

§4052 Agreements with flood insurance pool

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 › § 4052

Last updated Apr 6, 2026|Official source

Summary

The Administrator can make agreements with the flood insurance pool to run the program. The agreements must explain how reserve money will pay claims, how the pool and participating insurers share premiums, profits, and losses, and the maximum profit allowed (set by the Administrator and listed under section 4018). They must also say how operating costs and allowances (section 4018), premium-equalization payments (section 4054), and reinsurance claims (section 4055) are paid. The agreements must also make sure any insurer that meets the rules in section 4051(b) and wants to join on a risk-sharing basis is not kept out, that coverage and reinsurance stay continuous, and that insurers, agents, brokers, and adjusters can help the pool as fiscal agents or in other non‑risk-sharing roles when practical.

Full Legal Text

Title 42, §4052

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

(a)The Administrator is authorized to enter into such agreements with the pool formed or otherwise created under this part as he deems necessary to carry out the purposes of this chapter.
(b)Such agreements shall specify—
(1)the terms and conditions under which risk capital will be available for the adjustment and payment of claims,
(2)the terms and conditions under which the pool (and the companies and other insurers participating therein) shall participate in premiums received and profits or losses realized or sustained,
(3)the maximum amount of profit, established by the Administrator and set forth in the schedules prescribed under section 4018 of this title, which may be realized by such pool (and the companies and other insurers participating therein),
(4)the terms and conditions under which operating costs and allowances set forth in the schedules prescribed under section 4018 of this title may be paid, and
(5)the terms and conditions under which premium equalization payments under section 4054 of this title will be made and reinsurance claims under section 4055 of this title will be paid.
(c)In addition, such agreements shall contain such provisions as the Administrator finds necessary to assure that—
(1)no insurance company or other insurer which meets the requirements prescribed under section 4051(b) of this title, and which has indicated an intention to participate in the flood insurance program on a risk-sharing basis, will be excluded from participating in the pool,
(2)the insurance companies and other insurers participating in the pool will take whatever action may be necessary to provide continuity of flood insurance coverage or reinsurance by the pool, and
(3)any insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations will be permitted to cooperate with the pool as fiscal agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (a), 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—Subsecs. (a), (b)(3), (c). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director”. Subsec. (c)(2). Pub. L. 112–141, § 100232(d)(2), inserted “or reinsurance” after “flood insurance coverage”. 1983—Subsecs. (a), (b)(3), (c). Pub. L. 98–181 substituted “Director” for “Secretary”.

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. § 4052

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73