Chapter 175A of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by adding the following section after Section 5: –

Section 5 ½.  The commissioner shall conduct an investigation every two years to determine how flood insurance rates are set by the National Flood Insurance program and to make suggestions for changes to ensure the rates are not excessive. The commission shall use the findings of the investigation to measure the reasonableness of the flood insurance rates and make suggestions for action by Congress and FEMA.

The findings of the investigation will allow the commissioner to highlight discrepancies in rates as to avoid excessive surcharges that may be applied by insurance companies that (i) are authorized to transact business under the first clause of section forty-seven of chapter 175 and (ii) have notified the commissioner of its participation in the flood insurance program established under the National Flood Insurance Act of 1968 after natural disasters including, but not limited to, tornados, hail, hurricanes, and snow storms occur in the Commonwealth.

The purpose of the bi-annual study would be to ensure that customers of the insurance companies specified in section forty-seven of chapter 175 are not inappropriately spiking prices due to natural disasters nationally and that the “high-risk” and “moderate-to-low risk” area designations are properly made in accordance with current FEMAs standards.