; (2) the term catastrophic loss year means a year in which the combined ratio is not less than 130 percent; (3) the term combined ratio means the quotient obtained when the sum obtained by adding the losses paid under the National Flood Insurance Program in a year and the expenses of the National Flood Insurance Program in that year is divided by the total amount of premiums collected under the National Flood Insurance Program in that year; (4) the term covered agent means any insurance agent, producer, or intermediary licensed by a State; (5) the term covered structure means real property eligible for flood insurance coverage under the National Flood Insurance Program; (6) the term eligible participant means a person that has demonstrated ownership of a covered structure; (7) the term flood height means the distance between the lowest adjacent grade and the high water mark of a flood on the first floor of a covered structure, as measured or as determined by other appropriate methods; (8) the term Program means the Agreed Value Flood Protection Program established under section 303(a); and (9) the term Reserve Fund means the Agreed Value Flood Protection Program Reserve Fund established under section 305(a). 303. Agreed Value Flood Protection Pilot Program (a) In general The Administrator may establish and carry out an optional Agreed Value Flood Protection Pilot Program for the 8-year period beginning on the date of enactment of this Act, or during the period beginning on the date of enactment of this Act and ending on the date on which authorization for the National Flood Insurance Program expires, whichever is shorter, under which— (1) an eligible participant may purchase an agreed value flood protection policy to protect against losses resulting from physical damage to, or loss of, a covered structure, including any personal property related thereto, owned by the eligible participant arising from a flood occurring in the United States during the period for which the policy is in force