[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR61.7]

[Page 269]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 
                                SECURITY
 
PART 61_INSURANCE COVERAGE AND RATES--Table of Contents
 
Sec. 61.7  Risk premium rate determinations.

    (a) Pursuant to section 1307 of the Act, the Administrator is 
authorized to undertake studies and investigations to enable him/her to 
estimate the risk premium rates necessary to provide flood insurance in 
accordance with accepted actuarial principles, including applicable 
operating costs and allowances. Such rates are also referred to in this 
subchapter as ``actuarial rates.''
    (b) The Administrator is also authorized to prescribe by regulation 
the rates which can reasonably be charged to insureds in order to 
encourage them to purchase the flood insurance made available under the 
Program. Such rates are referred to in this subchapter as ``chargeable 
rates.'' For areas having special flood, mudslide (i.e., mudflow), and 
flood-related erosion hazards, chargeable rates are usually lower than 
actuarial rates.