42 U.S.C. § 5154: Insurance

Summary

People or groups asking for federal help to repair, restore, or replace damaged facilities must follow rules from the President that make them get and keep insurance that is reasonably available, enough to protect the property, and needed. The President cannot demand more insurance than the State insurance commissioner says is reasonable. You cannot get this federal help for property you already got help for unless the required insurance is in place and kept. That rule cannot be waived. A State can choose to act as its own insurer if it files a written choice and a self-insurance plan the President accepts; that counts as meeting the insurance rule. But a self-insuring State cannot get more help for property it already got help for when private insurance would have been reasonably available.

Title 42, §5154

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

(a)Applicants for replacement of damaged facilities

(1)Compliance with certain regulations

An applicant for assistance under section 5172 of this title (relating to repair, restoration, and replacement of damaged facilities), section 5189 of this title (relating to simplified procedure) or section 3149(c)(2) of this title shall comply with regulations prescribed by the President to assure that, with respect to any property to be replaced, restored, repaired, or constructed with such assistance, such types and extent of insurance will be obtained and maintained as may be reasonably available, adequate, and necessary, to protect against future loss to such property.

(2)Determination

In making a determination with respect to availability, adequacy, and necessity under paragraph (1), the President shall not require greater types and extent of insurance than are certified to him as reasonable by the appropriate State insurance commissioner responsible for regulation of such insurance.

(b)Maintenance of insurance

No applicant for assistance under section 5172 of this title (relating to repair, restoration, and replacement of damaged facilities), section 5189 of this title (relating to simplified procedure), or section 3149(c)(2) of this title may receive such assistance for any property or part thereof for which the applicant has previously received assistance under this chapter unless all insurance required pursuant to this section has been obtained and maintained with respect to such property. The requirements of this subsection may not be waived under section 5141 of this title.

(c)State acting as self-insurer

A State may elect to act as a self-insurer with respect to any or all of the facilities owned by the State. Such an election, if declared in writing at the time of acceptance of assistance under section 5172 or 5189 of this title or section 3149(c)(2) of this title or subsequently and accompanied by a plan for self-insurance which is satisfactory to the President, shall be deemed compliance with subsection (a). No such self-insurer may receive assistance under section 5172 or 5189 of this title for any property or part thereof for which it has previously received assistance under this chapter, to the extent that insurance for such property or part thereof would have been reasonably available.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (b) and (c), was in the original “this Act”, meaning Pub. L. 93–288, May 22, 1974, 88 Stat. 143. For complete classification of this Act to the Code, see

Short Title

note set out under section 5121 of this title and Tables.

Prior Provisions

A prior section 5154, Pub. L. 93–288, title III, § 314, May 22, 1974, 88 Stat. 151, consisted of similar provisions, prior to repeal by Pub. L. 100–707, § 105(h). A prior section 311 of Pub. L. 93–288 was renumbered section 308 by Pub. L. 100–707 and is classified to section 5151 of this title.

Amendments

2000—Subsecs. (a)(1), (b), (c). Pub. L. 106–390 substituted “section 3149(c)(2) of this title” for “section 3233 of this title”. 1994—Subsec. (b). Pub. L. 103–325 inserted at end “The requirements of this subsection may not be waived under section 5141 of this title.”

§5154 Insurance