§4052 Agreements with Flood Insurance Pool

Summary

The Administrator may make agreements with the flood insurance pool to run the program and handle money and claims. Those agreements must explain how risk money will be used to pay claims; how the pool and participating insurers share premiums, profits, and losses; the maximum profit allowed (set by the Administrator and shown in schedules under section 4018); how operating costs and allowances from those schedules are paid; and how premium equalization payments and reinsurance claims under sections 4054 and 4055 will be handled. The agreements must also require that any insurer meeting the rules in section 4051(b) that wants to join on a risk-sharing basis is not excluded, that participants keep flood coverage or reinsurance going without gaps, and that insurers, agents, brokers, and adjusters may help the pool as fiscal agents or in other ways whenever practical.