Page:United States Statutes at Large Volume 82.djvu/625

 82 STAT. ]

PUBLIC LAW 90-448-AUG. 1, 1968

ADJUSTMENT AND P A Y M E N T OF CLAIMS AND J U D I C I A L

583 REVIEW

SEC. 18H3. 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 title 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 jurisdiction is hereby conferred upon such court to hear and determine such action without regard to the amount in controversy. P R E M I U M EQUALIZATION P A Y M E N T S

SEC. 1334. (a) The Secretary, on such terms and conditions as he may from time to time prescribe, shall make periodic payments to the pool formed or otherwise created under section 1331, in recognition of such reductions in chargeable premium rates under section 1308 below estimated premium rates under section 1307(a)(1) as are required in order to make flood insurance available on reasonable termsi and conditions. (b) Such payments shall be based only on the aggregate amount of flood insurance retained by the pool after ceding reinsurance in accordance with the provisions of section 1335, and shall not exceed an aggregate amount in any payment period equal to the sum of the following: (1) an amount for los.ses which bears the same ratio to the amount of all proved and approved claims for losses under this title during any designated j^eriod as the amount equal to the difference between— (A) the sum of all premium payments for flood insurance coverage in force under this title during such designated period which would have been payable during such period if all.such coverage were based on estimated risk premium rates under section 1307(a)(1) (excluding any administrative exj^enses which may be reflected in such rates, as specified in clause (ii) of section 1307(a) (^1)(B)), and (B) the sum of the premium payments actually paid or payable for such insurance under this title during.such period, bears to the amount specified in clause (A); and (2) subject to the terms and conditions specified in the agreements entered into with the pool under section 1332, a proportionate amount for appropriate operating costs and allowances (a.s set forth in the schedules prescribed under section 1311) during any designated period which bears the same ratio to the total amount of such operating costs and allowances during.such period as the ratio specified in paragraph (1). (c) Designated periods under this section and the methods for determining the sum of premiums paid or payable during such periods .shall be established by the Secretary. REINSURANCE

COVERAGE

SEC. 1335. (a) The Secretary is authorized to take such action as may be necessary in order to make available, to the pool formed or otherwise created under section 1331, reinsurance for losses (due to claims for proved and approved losses covered by flood insurance)

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