[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12628]
[[Page Unknown]]
[Federal Register: May 24, 1994]
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FEDERAL EMERGENCY MANAGEMENT AGENCY
44 CFR Part 61
RIN 3067-AC24
National Flood Insurance Program; Insurance Rates
AGENCY: Federal Insurance Administration, FEMA.
ACTION: Final rule.
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SUMMARY: This final rule increases the National Flood Insurance Program
(NFIP) chargeable (subsidized) rates, which apply to all structures
located in communities participating in the Emergency Program of the
NFIP and to certain structures in communities in the Regular Program of
the NFIP. The rule is to help the NFIP satisfy the premium requirements
for the historical average loss year and to reduce the general
taxpayers' burden with a more equitable sharing of the costs of flood
losses between general taxpayers and the insureds.
EFFECTIVE DATE: October 1, 1994.
FOR FURTHER INFORMATION CONTACT: Charles M. Plaxico, Federal Emergency
Management Agency, Federal Insurance Administration, 500 C Street, SW.,
Washington, DC 20472, (202) 646-3422.
SUPPLEMENTARY INFORMATION: On March 21, 1994, the Federal Emergency
Management Agency (FEMA) published in the Federal Register (Vol. 59,
Page 13298) a proposed rule to increase the chargeable (subsidized)
rates. The chargeable (subsidized) rates, for which an increase was
proposed, are the rates applicable to structures located in communities
participating in the Emergency Program of the NFIP and to certain
structures in communities in the Regular Program of the NFIP. They are
countrywide rates for two broad building type classifications which,
when applied to the amount of insurance purchased and added to the
expense constant and Federal policy fee, produce a premium income
somewhat less than the expense and loss payments incurred on the flood
insurance policies issued on that basis. The funds needed to supplement
the inadequate premium income are provided by the National Flood
Insurance Fund. The subsidized rates are promulgated by the
Administrator for use under the Emergency Program (added to the NFIP by
the Congress in Section 408 of the Housing and Urban Development Act of
1969) and for use in the Regular Program on construction or substantial
improvements started before the effective date of the initial Flood
Insurance Rate Map (FIRM) or on or before December 31, 1974 (this
additional grandfathering was added to the NFIP by Congress in section
103 of the Flood Disaster Protection Act of 1973), whichever is later.
FEMA proposed to increase the chargeable or subsidized rates as
follows:
------------------------------------------------------------------------
Rates per year per
$100 coverage on
Type of structure --------------------
Structure Contents
------------------------------------------------------------------------
(1) Residential.................................... $0.60 $0.70
(2) All other (including hotels and motels with
normal occupancy of less than 6 months in
duration)......................................... .70 1.40
------------------------------------------------------------------------
For comparison, the current subsidized rates are as follows:
------------------------------------------------------------------------
Rates per year per
$100 coverage on
Type of structure --------------------
Structure
Contents
------------------------------------------------------------------------
(1) Residential.................................... $0.55 $0.65
(2) All other (including hotels and motels with
normal occupancy of less than 6 months in
duration)......................................... .65 1.30
------------------------------------------------------------------------
A 45-day period (ending on May 5, 1994) was provided for review and
comment on the proposed changes. No comments were received during the
comment period. Therefore, the revision increasing the chargeable
(subsidized) rates is incorporated into the final rule as proposed,
without change.
National Environmental Policy Act
Pursuant to section 102(2)(C) of the National Environmental Policy
Act of 1969, 42 U.S.C. 4371 et seq., and the implementing regulations
of the Council on Environmental Quality, 40 CFR parts 1500-1508, FEMA
has prepared an environmental assessment of the issuance by FEMA of
this final rule. The assessment concludes that there will be no
significant impact on the human environment as a result of the issuance
of the final rule. It is, therefore, found that the action does not
constitute a major Federal action significantly affecting the quality
of the human environment. On this basis, an Environmental Impact
Statement will not be prepared. Copies of the environmental assessment
are available for inspection at the Federal Emergency Management
Agency, room 840, 500 C St., SW., Washington, DC 20472.
Executive Order 12866, Regulatory Planning and Review
This final rule is not a significant regulatory action as defined
under Executive Order 12866 of September 30, 1993, Regulatory Planning
and Review, 58 FR 51735, October 4, 1993. To the extent possible, this
rule adheres to the principles of regulation set forth in this
Executive Order.
Paperwork Reduction Act
This final rule does not contain a collection of information
requirement as described in section 3504(h) of the Paperwork Reduction
Act.
Executive Order 12612, Federalism
This final rule involves no policies that have federalism
implications under Executive Order 12612, Federalism, dated October 26,
1987.
Executive Order 12778, Civil Justice Reform
This rule meets the applicable standards of section 2(b)(2) of
Executive Order 12778.
List of Subjects in 44 CFR Part 61
Flood Insurance.
Accordingly, 44 CFR part 61 is amended as follows:
PART 61--INSURANCE COVERAGE AND RATES
1. The authority citation for part 61 continues to read as follows:
Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31,
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.
2. Section 61.9 is revised to read as follows:
Sec. 61.9 Establishment of chargeable rates.
(a) Pursuant to section 1308 of the Act, chargeable rates per year
per $100 of flood insurance are established as follows for all areas
designated by the Administrator under part 64 of this subchapter for
the offering of flood insurance.
Rates for New and Renewal Policies
------------------------------------------------------------------------
Rates per year per
$100 coverage on
Type of structure --------------------
Structure
Contents
------------------------------------------------------------------------
(1) Residential.................................... $0.60 $0.70
(2) All other (including hotels and motels with
normal occupancy of less than 6 months in
duration)......................................... .70 1.40
------------------------------------------------------------------------
(b) The contents rate shall be based upon the use of the individual
premises for which contents coverage is purchased.
(Catalog of Federal Domestic Assistance No. 83.100, ``Flood
Insurance.'')
Dated: May 18, 1994.
Elaine A. McReynolds,
Administrator, Federal Insurance Administration.
[FR Doc. 94-12628 Filed 5-23-94; 8:45 am]
BILLING CODE 6718-05-P