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Title 42 — The Public Health and WelfareRelease 119-73

§4054 Premium equalization payments; basis; aggregate amount; establishment of designated periods

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 › § 4054

Last updated Apr 6, 2026|Official source

Summary

The Administrator must make regular payments into the pool set up under section 4051. These payments make up for times when the chargeable premium rates set under section 4015 are lower than the estimated rates in section 4014(a)(1), when those lower rates are needed so flood insurance can be offered on reasonable terms. The Administrator will also set the specific time periods covered and the method for adding up the total premiums paid or owed during those periods.

Full Legal Text

Title 42, §4054

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

(a)The Administrator, on such terms and conditions as he may from time to time prescribe, shall make periodic payments to the pool formed or otherwise created under section 4051 of this title, in recognition of such reductions in chargeable premium rates under section 4015 of this title below estimated premium rates under section 4014(a)(1) of this title as are required in order to make flood insurance available on reasonable terms and conditions.
(b)Designated periods under this section and the methods for determining the sum of premiums paid or payable during such periods shall be established by the Administrator.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2012—Pub. L. 112–141 substituted “Administrator” for “Director” in subsecs. (a) and (b). 1983—Pub. L. 98–181 substituted “Director” for “Secretary” in subsecs. (a) and (b). 1973—Subsecs. (b), (c). Pub. L. 93–234 redesignated subsec. (c) as (b) and struck out former subsec. (b) prescribing formula for sharing losses between Government and industry and permit necessary flexibility in loss sharing to take into account longer-term loss experience trends and to compensate for lack of precision in actuarial computations.

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. § 4054

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73