---
kind: "section"
citation: "42 U.S.C. § 4021"
title: "42"
title_heading: "The Public Health and Welfare"
number: "4021"
heading: "Participation in State disaster claims mediation programs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/4021"
units:
  - "Chapter 50 — National Flood Insurance"
  - "Subchapter I — The National Flood Insurance Program"
---

# §4021. Participation in State disaster claims mediation programs

- (a) **Requirement to participate—** In the case of the occurrence of a major [disaster](/usc/42/5204.md?p=2), as defined in [section 5122 of this title](/usc/42/5122.md), that may have resulted in [flood](/usc/42/4121.md?p=a-1) damage covered under the [national flood insurance program](/usc/42/4004.md?p=a-4) established under this chapter and other personal lines residential property insurance coverage offered by a [State](/usc/42/4121.md?p=a-2) regulated insurer, upon a request made by the insurance commissioner of a [State](/usc/42/4121.md?p=a-2) (or such other official responsible for regulating the business of insurance in the [State](/usc/42/4121.md?p=a-2)) for the participation of representatives of the [Administrator](/usc/42/4003.md?p=a-6) in a program sponsored by such [State](/usc/42/4121.md?p=a-2) for nonbinding mediation of insurance claims resulting from a major [disaster](/usc/42/5204.md?p=2), the [Administrator](/usc/42/4003.md?p=a-6) shall cause representatives of the [national flood insurance program](/usc/42/4004.md?p=a-4) to participate in such a [State](/usc/42/4121.md?p=a-2) program where claims under the [national flood insurance program](/usc/42/4004.md?p=a-4) are involved to expedite settlement of [flood](/usc/42/4121.md?p=a-1) damage claims resulting from such [disaster](/usc/42/5204.md?p=2).
- (b) **Extent of participation—** In satisfying the requirements of [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6) shall require that each representative of the [Administrator](/usc/42/4003.md?p=a-6)—
  - (1) be certified for purposes of the [national flood insurance program](/usc/42/4004.md?p=a-4) to settle claims against such program resulting from such [disaster](/usc/42/5204.md?p=2) in amounts up to the limits of policies under such program;
  - (2) attend [State](/usc/42/4121.md?p=a-2)-sponsored mediation meetings regarding [flood](/usc/42/4121.md?p=a-1) insurance claims resulting from such [disaster](/usc/42/5204.md?p=2) at such times and places as may be arranged by the [State](/usc/42/4121.md?p=a-2);
  - (3) participate in good-faith negotiations toward the settlement of such claims with policyholders of coverage made available under the [national flood insurance program](/usc/42/4004.md?p=a-4); and
  - (4) finalize the settlement of such claims on behalf of the [national flood insurance program](/usc/42/4004.md?p=a-4) with such policyholders.
- (c) **Coordination—** Representatives of the [Administrator](/usc/42/4003.md?p=a-6) shall at all times coordinate their activities with insurance officials of the [State](/usc/42/4121.md?p=a-2) and representatives of insurers for the purposes of consolidating and expediting settlement of claims under the [national flood insurance program](/usc/42/4004.md?p=a-4) resulting from such [disaster](/usc/42/5204.md?p=2).
- (d) **Qualifications of mediators—** Each [State](/usc/42/4121.md?p=a-2) mediator participating in [State](/usc/42/4121.md?p=a-2)-sponsored mediation under this section shall be—
  - (1)
    - (A) a member in good standing of the [State](/usc/42/4121.md?p=a-2) bar in the [State](/usc/42/4121.md?p=a-2) in which the mediation is to occur with at least 2 years of practical experience; and
    - (B) an active member of such bar for at least 1 year prior to the year in which such mediator’s participation is sought; or
  - (2) a retired trial judge from any [United States](/usc/42/4121.md?p=a-2) jurisdiction who was a member in good standing of the bar in the [State](/usc/42/4121.md?p=a-2) in which the judge presided for at least 5 years prior to the year in which such mediator’s participation is sought.
- (e) **Mediation proceedings and documents privileged—** As a condition of participation, all statements made and documents produced pursuant to [State](/usc/42/4121.md?p=a-2)-sponsored mediation involving representatives of the [Administrator](/usc/42/4003.md?p=a-6) shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation.
- (f) **Liability, rights, or obligations not affected—** Participation in [State](/usc/42/4121.md?p=a-2)-sponsored mediation, as described in this section does not—
  - (1) affect or expand the liability of any party in contract or in tort; or
  - (2) affect the rights or obligations of the parties, as established—
    - (A) in any regulation issued by the [Administrator](/usc/42/4003.md?p=a-6), including any regulation relating to a standard [flood](/usc/42/4121.md?p=a-1) insurance policy;
    - (B) under this chapter; and
    - (C) under any other provision of Federal law.
- (g) **Exclusive Federal jurisdiction—** Participation in [State](/usc/42/4121.md?p=a-2)-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of [United States](/usc/42/4121.md?p=a-2) courts, as set forth in this chapter.
- (h) **Cost limitation—** Nothing in this section shall be construed to require the [Administrator](/usc/42/4003.md?p=a-6) or a representative of the [Administrator](/usc/42/4003.md?p=a-6) to pay additional mediation fees relating to [flood](/usc/42/4121.md?p=a-1) insurance claims associated with a [State](/usc/42/4121.md?p=a-2)-sponsored mediation program in which such representative of the [Administrator](/usc/42/4003.md?p=a-6) participates.
- (i) **Exception—** In the case of the occurrence of a major [disaster](/usc/42/5204.md?p=2) that results in [flood](/usc/42/4121.md?p=a-1) damage claims under the [national flood insurance program](/usc/42/4004.md?p=a-4) and that does not result in any loss covered by a personal lines residential property insurance policy—
  - (1) this section shall not apply; and
  - (2) the provisions of the standard [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4) and the appeals process established under [section 205](/usc/42/205.md) of the Bunning-Bereuter-Blumenauer [Flood](/usc/42/4121.md?p=a-1) Insurance Reform Act of 2004 ([42 U.S.C. 4011](/usc/42/4011.md) note) and the regulations issued pursuant to such section shall apply exclusively.
- (j) **Representatives of the Administrator—** For purposes of this section, the term “representatives of the [Administrator](/usc/42/4003.md?p=a-6)” means representatives of the [national flood insurance program](/usc/42/4004.md?p=a-4) who participate in the appeals process established under [section 205](/usc/42/205.md) of the Bunning-Bereuter-Blumenauer [Flood](/usc/42/4121.md?p=a-1) Insurance Reform Act of 2004 ([42 U.S.C. 4011](/usc/42/4011.md) note).

## Source credit

(Pub. L. 90–448, title XIII, § 1314, as added Pub. L. 112–141, div. F, title II, § 100223, July 6, 2012, 126 Stat. 934.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (a), (f)(2)(B), and (g), was in the original a reference to “this title” meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables.

Section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, referred to in subsecs. (i)(2) and (j), is section 205 of Pub. L. 108–264, which is set out in a note under section 4011 of this title.

### Prior Provisions

A prior section 4021, Pub. L. 90–448, title XIII, § 1314, Aug. 1, 1968, 82 Stat. 579, which denied Federal disaster assistance after Dec. 31, 1973, to persons who for a period of a year or more could have purchased flood insurance but did not do so, and defined “Federal disaster assistance” and “financial assistance”, was repealed by Pub. L. 93–234, title II, § 203, Dec. 31, 1973, 87 Stat. 982.