582
PUBLIC LAW 90-448-AUG. 1, 1968
[82 STAT.
PART A—INDUSTRY PROGRAM W I T H FEDERAL FINANCIAL ASSISTANCE I N D U S T R Y FLOOD INSURANCE
Ante, p. 574.
POOL
SEC. 1331. (a) The Secretary is authorized to encourage and otherwise assist any insurance companies and other insurers which meet the requirements prescribed under subsection (b) to form, associate, or otherwise join together in a pool— (1) in order to pix)vide the flood insurance coverage authorized Under chapter I; and (2) for the purpose of assuming, on such terms and conditions as may be agreed upon, such financial responsibility as will enable such companies and other insurers, with the Federal financial and other assistance available under this title, to assume a reasonable proportion of responsibility for the adjustment and payment of claims for losses under the flood insurance program. (b) In order to promote the effective administration of the flood insurance program under this part, and to assure that the objectives of this title are furthered, the Secretary is authorized to prescribe appropriate requirements for insurance companies and other insurers participating in such pool including, but not limited to, minimum requirements for capital or surplus or assets. AGREEMENTS W I T H
FLOOD INSURANCE
POOL
Srx!. 1332. (a) The Secretary is authorized to enter into such agreements with the pool formed or otherwise created under this part as he deems necessary to carry out the purposes of this title. (b) Such agreements shall specify— (1) the terms and conditions under which risk capital will be available for the adjustment and payment of claims, (2) the terms and conditions under which the pool (and the companies and other insurers participating therein) shall participate in premiums received and profits or losses realized or sustained, (3) the maximum amount of profit, established by the Secretary and set forth in the schedules prescribed under section 1311, which may be realized by such pool (and the companies and other insurers participating therein), (4) the terms and conditions under which operating costs and allowances set forth in the schedules prescribed under section 1311 may be paid, and (5) the terms and conditions under which premium equalization payments under section 1334 wall be made and reinsurance claims under section 1335 will be paid. (c) In addition, such agreements shall contain such provisions as the Secretary finds necessary to assure that— (1) no insurance company or other insurer which meets the requirements prescribed under section 1331(b), and which has indicated an intention to participate in the flood insurance program on a risk-sharing basis, will be excluded from participating in the pool, (2) the insurance companies and other insurers participating in the pool will take whatever action may be necessary to provide continuity of flood insurance coverage by the pool, and (3) any insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations will be permitted to cooperate with the pool as fiscal agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable.
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