42 U.S.C. § 4053: Adjustment and payment of…

Summary

Insurers in the flood insurance pool can investigate and pay verified flood-loss claims under this chapter. If an insurer denies or partly denies a claim, or the claimant rejects the amount offered, the claimant may sue within one year after the insurer mails the denial notice. The suit must be filed in the U.S. district court where the insured property (or most of it) was located, and that federal court has the sole right to decide the case first, no matter how much money is involved.

Title 42, §4053

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

The insurance companies and other insurers which form, associate, or otherwise join together in the pool under this part may adjust and pay all claims for proved and approved losses covered by flood insurance in accordance with the provisions of this chapter and, upon the disallowance by any such company or other insurer of any such claim, or upon the refusal of the claimant to accept the amount allowed upon any such claim, the claimant, within one year after the date of mailing of notice of disallowance or partial disallowance of the claim, may institute an action on such claim against such company or other insurer in the United States district court for the district in which the insured property or the major part thereof shall have been situated, and original exclusive jurisdiction is hereby conferred upon such court to hear and determine such action without regard to the amount in controversy.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, 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.

Amendments

1983—Pub. L. 98–181 inserted “original exclusive” before “jurisdiction”.

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.

§4053 Adjustment and Payment of Claims; Judicial Review; Limitations; Jurisdiction