[Code of Federal Regulations]

[Title 44, Volume 1]

[Revised as of October 1, 2006]

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.