FEMA cannot provide assistance for disaster-related losses that would duplicate benefits available to an applicant from another source; including insurance. When two or more entities agree to share risk under a contractual agreement; FEMA defines the agreement as an insurance pool.The policy with FCSRMC is a contractual agreement that indemnifies the Applicant in the event of loss by obligating FCSRMC to provide payment for damages.Consequently; FEMA reduction of funding under PW 3663 and PW 5563 was proper; as FCSRMC was responsible for reimbursing the Applicant costs to repair disaster-related damages; including the costs on appeal.The terms of the Applicant agreement with FCSRMC demonstrate that it is an insurance pool. Approval of additional PA funding would constitute a duplication of benefits and is prohibited by the Stafford Act. The appeal is denied.

FP 206-086-1; at 2; 8-9.HeadnotesFEMA cannot provide assistance for disaster-related losses that would duplicate benefits available to an applicant from another source; including insurance. When two or more entities agree to share risk under a contractual agreement; FEMA defines the agreement as an insurance pool.The policy with FCSRMC is a contractual agreement that indemnifies the Applicant in the event of loss by obligating FCSRMC to provide payment for damages.Consequently; FEMA’s reduction of funding under PW 3663 and PW 5563 was proper; as FCSRMC was responsible for reimbursing the Applicant’s costs to repair disaster-related damages; including the costs on appeal.ConclusionThe terms of the Applicant’s agreement with FCSRMC demonstrate that it is an insurance pool. Approval of additional PA funding would constitute a duplication of benefits and is prohibited by the Stafford Act. The appeal is denied.