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Title 42 — The Public Health and WelfareRelease 119-73

§4082 Use of insurance pool, companies, or other private organizations for certain payments

Title 42 › Chapter CHAPTER 50— - NATIONAL FLOOD INSURANCE › Subchapter SUBCHAPTER II— - ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM › Part Part C— - General Provisions › § 4082

Last updated Apr 6, 2026|Official source

Summary

The Administrator may hire a pool formed under section 4051 of this title, an insurance company, or another private group to get reinsurance or to carry out work for the flood insurance program. Contracts can cover five kinds of work, including estimating and deciding payment amounts, receiving and paying out funds and keeping records, auditing insurers and agents, placing reinsurance, and other help the contract says. The Administrator can set the contract terms and pay costs that are part of the work. Such contracts do not have to follow section 6101 of title 41 or other laws that require competitive bidding. A contract can only be made if the Administrator finds the pool, company, or group will perform efficiently and meet financial, legal, and other requirements. The Administrator can require surety bonds in amounts he chooses for people who certify or pay out funds. Anyone who certifies payments or who pays funds will not be personally liable for those payments unless there is gross negligence or intent to defraud the United States; the same protection applies to an officer who pays funds based on a voucher signed by an approved certifier. Each contract runs for one year and can renew automatically unless either party gives notice. The Administrator may end a contract after reasonable notice if the contractor seriously fails to do the work or hurts the efficient and effective administration of the program.

Full Legal Text

Title 42, §4082

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

(a)In order to provide for maximum efficiency in the administration of the flood insurance program and in order to facilitate the expeditious payment of any Federal funds under such program, the Administrator may enter into contracts with pool formed or otherwise created under section 4051 of this title, or any insurance company or other private organizations, for the purpose of securing reinsurance of insurance coverage provided by the program or for the purpose of securing performance by such pool, company, or organization of any or all of the following responsibilities:
(1)Estimating and later determining any amounts of payments to be made.
(2)Receiving from the Administrator, disbursing, and accounting for funds in making such payments.
(3)Making such audits of the records of any insurance company or other insurer, insurance agent or broker, or insurance adjustment organization as may be necessary to assure that proper payments are made.
(4)Placing reinsurance coverage on insurance provided by such program.
(5)Otherwise assisting in such manner as the contract may provide to further the purposes of this chapter.
(b)Any contract with the pool or an insurance company or other private organization under this section may contain such terms and conditions as the Administrator finds necessary or appropriate for carrying out responsibilities under subsection (a), and may provide for payment of any costs which the Administrator determines are incidental to carrying out such responsibilities which are covered by the contract.
(c)Any contract entered into under subsection (a) may be entered into without regard to section 6101 of title 41 or any other provision of law requiring competitive bidding.
(d)No contract may be entered into under this section unless the Administrator finds that the pool, company, or organization will perform its obligations under the contract efficiently and effectively, and will meet such requirements as to financial responsibility, legal authority, and other matters as he finds pertinent.
(e)(1)Any such contract may require the pool, company, or organization or any of its officers or employees certifying payments or disbursing funds pursuant to the contract, or otherwise participating in carrying out the contract, to give surety bond to the United States in such amount as the Administrator may deem appropriate.
(2)No individual designated pursuant to a contract under this section to certify payments shall, in the absence of gross negligence or intent to defraud the United States, be liable with respect to any payment certified by him under this section.
(3)No officer disbursing funds shall in the absence of gross negligence or intent to defraud the United States, be liable with respect to any payment by him under this section if it was based upon a voucher signed by an individual designated to certify payments as provided in paragraph (2) of this subsection.
(f)Any contract entered into under this section shall be for a term of one year, and may be made automatically renewable from term to term in the absence of notice by either party of an intention to terminate at the end of the current term; except that the Administrator may terminate any such contract at any time (after reasonable notice to the pool, company, or organization involved) if he finds that the pool, company, or organization has failed substantially to carry out the contract, or is carrying out the contract in a manner inconsistent with the efficient and effective administration of the flood insurance program authorized under this chapter.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a)(5) and (f), 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. Codification In subsec. (c), “section 6101 of title 41” substituted for “section 3709 of the Revised Statute (41 U.S.C. 5)” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

Amendments

2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director” in introductory provisions. Pub. L. 112–141, § 100232(d)(4)(A), inserted “securing reinsurance of insurance coverage provided by the program or for the purpose of” after “for the purpose of” in introductory provisions. Subsec. (a)(1). Pub. L. 112–141, § 100232(d)(4)(B), substituted “Estimating” for “estimating” and period for semicolon at end. Subsec. (a)(2). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director”. Pub. L. 112–141, § 100232(d)(4)(C), substituted “Receiving” for “receiving” and period for semicolon at end. Subsec. (a)(3). Pub. L. 112–141, § 100232(d)(4)(D)(ii), which directed substitution of period for “ ‘; and’ ” was executed by making the substitution for “; and” to reflect the probable intent of Congress. Pub. L. 112–141, § 100232(d)(4)(D)(i), substituted “Making” for “making”. Subsec. (a)(4). Pub. L. 112–141, § 100232(d)(4)(G), added par. (4). Former par. (4) redesignated (5). Subsec. (a)(5). Pub. L. 112–141, § 100232(d)(4)(E), (F), redesignated par. (4) as (5) and substituted “Otherwise” for “otherwise”. Subsecs. (b), (d), (e)(1), (f). Pub. L. 112–141, § 100238(b)(1), substituted “Administrator” for “Director” wherever appearing. 1983—Subsecs. (a), (b), (d), (e)(1), (f). 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. § 4082

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73