National Flood Insurance Program Reauthorization and Reform Act of 2023

# Summary of National Flood Insurance Program Reform Bill This comprehensive legislation proposes significant reforms to the National Flood Insurance Program (NFIP) with a focus on policyholder protections, program transparency, and program solvency. ## Key Provisions: ### Policyholder Protections (Sections 401-416) - **Enhanced Appeals Process**: Creates an Independent Office for Policyholder Appeals with a 90-day deadline for final decisions - **Foundation Damage Presumption**: Establishes a rebuttable presumption that foundation/structural damage was caused by flood, not earth movement - **Mold Remediation Guidance**: Requires FEMA to provide policyholders with guidance on mold prevention after floods - **Transparency in Claims**: Mandates disclosure of all claim documents to policyholders upon request - **Training Requirements**: Requires continuing education for insurance agents every 2 years - **Prohibition on Report Manipulation**: Prevents alteration of engineer reports before providing them to policyholders - **Agent Advisory Council**: Establishes a council with diverse representation to advise FEMA on policyholder experience ### Solvency Measures (Sections 301-306) - **Interest Forbearance**: Forbids interest on NFIP debt for 5 years - **Write Your Own Company Compensation Cap**: Limits reimbursement to 22.46% of premiums - **Third-Party Cost Transparency**: Requires public disclosure of vendor costs - **Mitigation Assistance**: Requires policyholders to accept mitigation offers or face 25% premium increases ### Flood Risk Disclosure (Section 416) - Requires property flood hazard disclosure before property transfer, including flood risk information and insurance cost estimates - Sets a deadline of October 1, 2024 for adoption of disclosure requirements ### Additional Key Provisions - **Appeals Process**: Creates formal appeals for map changes and levee protection assessments - **Levee Protection**: Requires proper assessment of levee systems and mandates flood insurance purchase only in unprotected areas - **Premium Calculator**: Requires public tool to estimate flood insurance rates and show impact of mitigation - **Grace Period**: Allows policyholders to renew within 90 days of lapse at the original renewal rate This legislation aims to balance program solvency with improved consumer protections, increased transparency, and better risk management for flood insurance policyholders.