SECTION 1.

 The Legislature finds and declares the following:

(a)  Many homeowners in California have suffered devastation as a result of damages to their homes and possessions caused by flooding. Flood insurance is the only type of insurance coverage which protects homeowners from damage caused by rising water associated with flooding. Flood insurance is required to secure federally approved financing to buy, build, or improve structures in flood-prone special flood hazard areas, and must be maintained for the life of the loan. Taxpayers benefit when those in flood-prone areas buy and maintain flood insurance, because the insurance can be used to pay for covered flood losses, rather than federal, state, and local disaster assistance funds.

(b)  It is in the public interest for state and local government, the insurance industry, and the real estate lending industry to promote the purchase and maintenance of flood insurance for homes in flood-prone areas.

SEC. 2.

 (a)  The Insurance Commissioner shall adopt regulations to promote the purchase and maintenance of flood insurance in flood-prone areas.

(b)  In developing the regulations, the commissioner shall consider the following:

(1)  Actions involving the Department of Insurance, insurers, and insurance agents and brokers that would help the federal government facilitate compliance with federal flood insurance purchase and maintenance requirements.

(2)  Encouraging property owners in flood-prone areas who do not hold mortgages subject to federal flood insurance purchase requirements to purchase and maintain flood insurance.

(c)  The regulations shall be developed in consultation with insurers, insurance agents and brokers, homeowner and business groups, the real estate lending industry, the Federal Insurance Administration, and other federal, state, and local government, and private interests concerned with the purchase and maintenance of flood insurance.

(d)  The regulations may recommend and encourage, but not require, insurers, insurance agents and brokers, and others under the jurisdiction of the Department of Insurance to take action to promote the purchase and maintenance of flood insurance in flood-prone areas. The Department of Insurance shall monitor efforts undertaken to promote the purchase and maintenance of flood insurance.