§4121 Definitions

Summary

Defines words used for the federal flood insurance rules so people know what counts as a flood, who counts as an insurer or lender, and what other key terms mean. It says floods can mean lots of kinds of water damage (rising or overflowing waters, storm surges, abnormally high tides, tidal waves, tsunamis, hurricanes, and other severe storms). It also says floods include mudslides caused by water buildup and shoreline collapse or sinking from erosion or undermining by waves or currents that go beyond normal cycles. The Federal Emergency Management Agency (FEMA) Administrator can write rules to set exact meanings and to make the law work for mudslides and shoreline collapse. Flood — water inundation from rising or overflowing waters, storm surges, tides, tsunamis, hurricanes, or similar events; FEMA can set the exact definition. United States/State (geographic) — includes the States, the District of Columbia, U.S. territories and possessions, Puerto Rico, and the Trust Territory of the Pacific Islands. Insurance company/other insurer/agent or broker — any person or organization allowed to do insurance under state law, certain entities subject to Securities Exchange Act reporting rules, or those FEMA authorizes to take reinsurance. Insurance adjustment organization — people or groups that handle insurance loss claims. Person — any individual, group, company, association, or government body. Administrator — the FEMA Administrator. Repetitive loss structure — a building with flood insurance that had flood damage twice, where each repair cost averaged at least 25 percent of the building’s value, and the policy had increased cost of compliance coverage at the time of the second flood. Federal agency lender — a federal agency that makes direct loans secured by improved real estate or a mobile home when acting as a lender. Federal entity for lending regulation — the Federal Reserve Board, FDIC, Comptroller of the Currency, NCUA, Farm Credit Administration, or the agency that mainly supervises a particular lender. Improved real estate — land with a building on it. Lender — a regulated lending institution or a federal agency lender. Regulated lending institution — banks, savings and loans, credit unions, farm credit banks, Federal land bank associations, production credit associations, or similar supervised institutions. Servicer — the person who takes the borrower’s payments and makes required payments like principal, interest, taxes, and insurance. Substantially damaged structure — a building with flood insurance whose repair costs exceed the amount set by FEMA rules or a community ordinance, whichever is lower.