Accountability for underpayments and overpayments by Write Your Own companies

Section 1348 of the National Flood Insurance Act of 1968 (42 U.S.C. 4084) is amended by adding at the end the following: (c) Underpayments and overpayments (1) Accountability for underpayments If the Administrator determines through any audit that the pool or an insurance company or other private organization described in subsection (a) has not adjusted a claim in accordance with adjusting standards that are in effect as of the date on which the adjustment is performed and, as a result of that failure, has underpaid or overpaid a claim of a policyholder, the penalty imposed by the Administrator with respect to such a failure may not be less for an overpayment of a claim than for an underpayment of a claim. (2) Safe harbor for certain overpayments The Administrator may not impose a penalty on the pool or an insurance company or other private organization described in subsection (a) for overpayment of a claim of a policyholder for reasons described in paragraph (1) of this subsection if— (A) the overpayment was not in bad faith; and (B) the amount of the overpayment was not more than 4 percent of the coverage limit of the policy. (d) GAO report Not later than 2 years after the date of enactment of this subsection, and triennially thereafter, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report regarding any penalties imposed by the Administrator under subsection (c)(1)..