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‘(1) For the purposes of this Part, the Flood Reinsurance Scheme is a scheme which—
(a) is established for the purpose mentioned in subsection (2), and
(b) is designated for the purposes of this Part by regulations made by the Secretary of State.
(2) The purpo se referred to in subsection (1)(a) is the purpose of providing reinsurance to relevant insurers in respect of such risks relating to flooding as are identified by the scheme, in such a way as to—
(a) promote the availability and affordability of flood insurance for household premises while minimising the costs of doing so, and
(b) manage, over the period of operation of the scheme, the transition to risk-reflective pricing of flood insurance for household premises.
(3) Subsection (5) applies where the terms of the FR Scheme governing the availability of reinsurance under the FR Scheme for an insurance policy include a requirement as mentioned in subsection (4).
(4) The re quirement is that the part of the premium for the policy which is attributable to risks relating to flooding does not exceed a specified amount (“the eligibility threshold”).
(5) The Secretary of State may by regulations make provision as to the level of the eligibility threshold, and may make different provision for different purposes.
(6) Regul ations under subsection (5) may, in particular, make different provision for different insurance policies by reference to the value of the household premises to which a policy relates.
(7) In this Part, the Flood Reinsurance Scheme is called “the FR Scheme”.’.—(Dan Rogerson.)
Amendment proposed to New Clause 1: (a), after subsection (7), at end add—
‘(8) Prior to making any regulations under subsection (5) the Secretary of State shall require the Committee on Climate Change to provide current and projected estimates of the number of properties that would be eligible for—
(a) inclusion in the Flood Reinsurance Scheme;
(b) the value of levy required under section [Scheme funding]; and
(c) the likelihood of additional levy or contributions being needed from time to time.’.—(Thomas Docherty.)