PRIA, Government Policy, Made Personal

Summary

If a major disaster may have caused flood damage covered by the National Flood Insurance Program (NFIP) and the State’s insurance regulator asks, the NFIP must send representatives to join a State-run, nonbinding mediation program to help settle flood claims faster. Those representatives must be certified to settle claims up to policy limits, go to State mediation meetings, negotiate in good faith with policyholders, and be able to finalize settlements for the NFIP. They must work with State insurance officials and insurers to speed and combine claim handling. State mediators must be a practicing State lawyer with at least 2 years’ experience (and 1 year of active membership before the participation year) or a retired trial judge who was a bar member for at least 5 years before the participation year. Mediation talks and papers are confidential. Joining mediation does not change anyone’s legal liability, rights, or the exclusive federal court jurisdiction, and NFIP representatives are not required to pay extra mediation fees. If the disaster caused only NFIP flood claims and no personal residential insurance losses, this mediation process does not apply and the NFIP’s standard policy and the appeals process under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 apply instead. “Representatives of the Administrator” means NFIP staff who take part in that section 205 appeals process.

Title 42, §4021

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

(a)Requirement to participate

In the case of the occurrence of a major disaster, as defined in section 5122 of this title, that may have resulted in flood damage covered under the national flood insurance program established under this chapter and other personal lines residential property insurance coverage offered by a State regulated insurer, upon a request made by the insurance commissioner of a State (or such other official responsible for regulating the business of insurance in the State) for the participation of representatives of the Administrator in a program sponsored by such State for nonbinding mediation of insurance claims resulting from a major disaster, the Administrator shall cause representatives of the national flood insurance program to participate in such a State program where claims under the national flood insurance program are involved to expedite settlement of flood damage claims resulting from such disaster.

(b)Extent of participation

In satisfying the requirements of subsection (a), the Administrator shall require that each representative of the Administrator— (1)

(2)attend State-sponsored mediation meetings regarding flood insurance claims resulting from such disaster at such times and places as may be arranged by the State;

(3)participate in good-faith negotiations toward the settlement of such claims with policyholders of coverage made available under the national flood insurance program; and

(4)finalize the settlement of such claims on behalf of the national flood insurance program with such policyholders.

(c)Coordination

Representatives of the Administrator shall at all times coordinate their activities with insurance officials of the State and representatives of insurers for the purposes of consolidating and expediting settlement of claims under the national flood insurance program resulting from such disaster.

(d)Qualifications of mediators

Each State mediator participating in State-sponsored mediation under this section shall be—

(1)(A)a member in good standing of the State bar in the State in which the mediation is to occur with at least 2 years of practical experience; and

(B)an active member of such bar for at least 1 year prior to the year in which such mediator’s participation is sought; or

(2)a retired trial judge from any United States jurisdiction who was a member in good standing of the bar in the State in which the judge presided for at least 5 years prior to the year in which such mediator’s participation is sought.

(e)Mediation proceedings and documents privileged

As a condition of participation, all statements made and documents produced pursuant to State-sponsored mediation involving representatives of the Administrator shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation.

(f)Liability, rights, or obligations not affected

Participation in State-sponsored mediation, as described in this section does not—

(1)affect or expand the liability of any party in contract or in tort; or

(2)affect the rights or obligations of the parties, as established—

(A)in any regulation issued by the Administrator, including any regulation relating to a standard flood insurance policy;

(B)under this chapter; and

(C)under any other provision of Federal law.

(g)Exclusive Federal jurisdiction

Participation in State-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of United States courts, as set forth in this chapter.

(h)Cost limitation

Nothing in this section shall be construed to require the Administrator or a representative of the Administrator to pay additional mediation fees relating to flood insurance claims associated with a State-sponsored mediation program in which such representative of the Administrator participates.

(i)Exception

In the case of the occurrence of a major disaster that results in flood damage claims under the national flood insurance program and that does not result in any loss covered by a personal lines residential property insurance policy—

(1)this section shall not apply; and

(2)the provisions of the standard flood insurance policy under the national flood insurance program and the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) and the regulations issued pursuant to such section shall apply exclusively.

(j)Representatives of the Administrator

For purposes of this section, the term “representatives of the Administrator” means representatives of the national flood insurance program who participate in the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note).

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a), (f)(2)(B), and (g), 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. section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, referred to in subsecs. (i)(2) and (j), is section 205 of Pub. L. 108–264, which is set out in a note under section 4011 of this title.

Prior Provisions

A prior section 4021, Pub. L. 90–448, title XIII, § 1314, Aug. 1, 1968, 82 Stat. 579, which denied Federal disaster assistance after Dec. 31, 1973, to persons who for a period of a year or more could have purchased flood insurance but did not do so, and defined “Federal disaster assistance” and “financial assistance”, was repealed by Pub. L. 93–234, title II, § 203, Dec. 31, 1973, 87 Stat. 982.

§4021 Participation in State Disaster Claims Mediation Programs