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U.S. Code as of:
01/19/04
Section 1436c. Insurance for public housing agencies and Indian housing authorities
On and after October 28, 1991, notwithstanding any other
provision of State or Federal law, regulation or other requirement,
any public housing agency or Indian housing authority that
purchases any line of insurance from a nonprofit insurance entity,
owned and controlled by public housing agencies or Indian housing
authorities, and approved by the Secretary, may purchase such
insurance without regard to competitive procurement.
On and after October 28, 1991, the Secretary shall establish
standards as set forth herein, by regulation, adopted after notice
and comment rulemaking pursuant to subchapter II of chapter 5 of
title 5, which will become effective not later than one year from
October 28, 1991.
On and after October 28, 1991, in establishing standards for
approval of such nonprofit insurance entities, the Secretary shall
be assured that such entities have sufficient surplus capital to
meet reasonably expected losses, reliable accounting systems, sound
actuarial projections, and employees experienced in the insurance
industry. The Secretary shall not place restrictions on the
investment of funds of any such entity that is regulated by the
insurance department of any State that describes the types of
investments insurance companies licensed in such State may make.
With regard to such entities that are not so regulated, the
Secretary shall establish investment guidelines that are comparable
to State law regulating the investments of insurance companies.
On and after October 28, 1991, the Secretary shall not approve
additional nonprofit insurance entities until such standards have
become final, nor shall the Secretary revoke the approval of any
nonprofit insurance entity previously approved by the Department
unless for cause and after a due process hearing.
On and after October 28, 1991, until the Department of Housing
and Urban Development has adopted regulations specifying the nature
and quality of insurance covering the potential personal injury
liability exposure of public housing authorities and Indian housing
authorities (and their contractors, including architectural and
engineering services) as a result of testing and abatement of
lead-based paint in federally subsidized public and Indian housing
units, said authorities shall be permitted to purchase insurance
for such risk, as an allowable expense against amounts available
for capital improvements (modernization): Provided, That such
insurance is competitively selected and that coverage provided
under such policies, as certified by the authority, provides
reasonable coverage for the risk of liability exposure, taking into
consideration the potential liability concerns inherent in the
testing and abatement of lead-based paint, and the managerial and
quality assurance responsibilities associated with the conduct of
such activities.
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