42 U.S.C. § 4018: Operating costs and allowances; definitions

a current schedule of operating costs applicable both to risk-sharing insurance companies and other insurers and to insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations participating on other than a risk-sharing basis, and a current schedule of operating allowances applicable to risk-sharing insurance companies and other insurers, expense reimbursements covering the direct, actual, and necessary expenses incurred in connection with selling and servicing flood insurance coverage; reasonable compensation payable for selling and servicing flood insurance coverage, or commissions or service fees paid to producers; loss adjustment expenses; and other direct, actual, and necessary expenses which the Administrator finds are incurred in connection with selling or servicing flood insurance coverage; and the term “operating allowances” shall (without limiting such term) include amounts for profit and contingencies which the Administrator finds reasonable and necessary to carry out the purposes of this chapter.