Appeal of decisions relating to flood insurance coverage

(a) Enhanced policyholder appeals process (1) In general Part C of chapter II of the National Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end the following: 1349. Appeal of decisions relating to flood insurance coverage (a) Definition In this section, the term Office, except as otherwise specified, means the Independent Office for Policyholder Appeals established under subsection (b). (b) Independent Office for Policyholder Appeals Not later than 180 days after the date of enactment of this section, the Administrator shall establish an Independent Office for Policyholder Appeals to provide for a non-adversarial and fair administrative review of appeals submitted under subsection (c)(1). (c) Appeals process (1) Right to appeal A policyholder of a flood insurance policy issued under the national flood insurance program may appeal the denial of a claim arising under the policy in writing to the Office not later than 1 year after receipt of the denial. (2) Exhaustion of administrative appeals required before filing civil action A policyholder of a flood insurance policy issued under the national flood insurance program may not institute an action on a denied claim arising under the policy against the Administrator in a United States district court under section 1333 or 1341, as applicable, unless the policyholder has exhausted the appeals process under this section. (d) Duties and responsibilities In administering appeals submitted under subsection (c)(1), the Office shall— (1) issue final appeal decisions through an appeal process established by the Office; (2) disseminate information to appellants concerning the information that an appellant may include in the appeal submissions; (3) provide an appellant with an opportunity to discuss any issue on appeal with a claims expert in the Office; (4) provide aggregated appeals data to the Office of the Flood Insurance Advocate for use in fulfilling the duties and responsibilities of that office under section 24(b) of the Homeowner Flood Insurance Affordability Act of 2014 (42 U.S.C. 4033(b)); and (5) publish final appeal decisions to a public-facing website— (A) to inform the public; and (B) for awareness to support transparency and training for Write Your Own Companies and contractors of the Federal Emergency Management Agency. (e) Regulations (1) In general For purposes of implementing the appeals process under this section, the Administrator may promulgate new regulations or use regulations that were in effect on the date of enactment of this section, except that— (A) the Administrator may not declare any appeal ineligible if the policyholder submits the appeal to the Office not later than 1 year after the date on which the policyholder receives the denial of the applicable claim, as required under subsection (c)(1); (B) upon receiving all information necessary to complete an appeal, the Office shall notify the appellant that the Office will make a final decision not later than 90 days after receipt of that information; and (C) not later than 90 days after receipt of all information necessary to complete an appeal, the Office shall make a final decision on the appeal. (2) Enforcement of final decision deadline If the Office does not comply with the deadline under paragraph (1)(C) with respect to an appeal, and the policyholder that brought the appeal is ultimately successful, the Administrator shall pay to the policyholder interest on the claim that is the subject of the appeal, which shall— (A) begin accruing on the date on which the policyholder submits the appeal; and (B) be calculated using the rate of return on a 3-year Treasury bill, as in effect on the date described in subparagraph (A). (3) All information necessary For purposes of paragraph (1), the term all information necessary includes information obtained from a physical reinspection of the property or from an expert report, if that information is needed in order to complete the review of the appeal. (4) Liability protection No cause of action shall lie or be maintained in any court against the United States, and any such action shall be promptly dismissed, for violation of the notification requirement under paragraph (1)(B).. (2) Effective date for new appeals process Subsection (c) of section 1349 of the National Flood Insurance Act of 1968, as added by paragraph (1), shall take effect on the date that is 180 days after the date of enactment of this Act. (b) Repeal and transfer (1) In general Effective on the date that is 180 days after the date of enactment of this Act, section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note; Public Law 108–264) is repealed, and any appeals that were pending before the Administrator under that section on the day before that effective date shall be transferred to the Independent Office for Policyholder Appeals established under section 1349 of the National Flood Insurance Act of 1968 (as added by subsection (a)) for disposition under such section 1349. (2) Technical and conforming amendments (A) Table of contents The table of contents for the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public Law 108–264; 118 Stat. 712) is amended by striking the item relating to section 205. (B) Other amendment Section 204(a)(3) of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note; Public Law 108–264) is amended by striking section 205 and inserting section 1349 of the National Flood Insurance Act of 1968. (c) Judicial review reform (1) Government Program With Industry Assistance Section 1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 4072) is amended— (A) by striking In the event the program and inserting the following: (a) In general If the program; (B) in subsection (a), as so designated— (i) by inserting or the Administrator’s fiscal agent after upon the disallowance by the Administrator; (ii) by striking within one year after the date of mailing of notice of disallowance or partial disallowance by the Administrator, may institute an action against the Administrator on such claim and inserting not later than 1 year after exhausting available administrative remedies, may institute an action against the insurer on such claim; and (C) by adding at the end the following: (b) Exhaustion of administrative remedies (1) In general For the purposes of subsection (a), a claimant exhausts available administrative remedies if— (A) the claimant submits an appeal and complies with all requirements of the appeal process established under section 1349 and other applicable requirements; and (B) the Administrator— (i) issues a final decision on the appeal that partially or fully concurs with the insurer’s disallowance or partial disallowance of the claim; or (ii) makes no finding regarding the appeal by the date that is 90 days after the date on which the Administrator acknowledges receipt and acceptance of the appeal. (c) Limitations (1) Issues raised on appeal An action may not be instituted under this section for any issue of a claim that was not presented to the Administrator on appeal. (2) Weight of Administrator's disposition For purposes of this section, disposition of an appeal by the Administrator shall not be competent evidence of liability or the amount of damages.. (2) Industry program with Federal financial assistance Section 1333 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053) is amended— (A) by striking The insurance companies and other insurers and inserting the following: (a) In general The insurance companies and other insurers; (B) in subsection (a), as so designated, by striking 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 and inserting not later than 1 year after exhausting available administrative remedies, may institute an action on the claim against the company or other insurer; and (C) by adding at the end the following: (b) Exhaustion of administrative remedies For the purposes of subsection (a), a claimant exhausts available administrative remedies if— (1) the claimant submits an appeal and complies with all requirements of the appeal process established under section 1349 and other applicable requirements; and (2) the Administrator— (A) issues a final decision on the appeal that partially or fully concurs with the insurer’s disallowance or partial disallowance of the claim; or (B) makes no finding regarding the appeal by the date that is 90 days after the date on which the Administrator acknowledges receipt and acceptance of the appeal. (c) Limitations (1) Issues raised on appeal An action may not be instituted under this section for any issue of a claim that was not presented to the Administrator on appeal. (2) Weight of Administrator's disposition For purposes of this section, disposition of an appeal by the Administrator shall not be competent evidence of liability or the amount of damages..