,i #aac? ,,congress #a/ ,session ,h4 ,r4 #bdj ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,janu>y #ad1 #bjac ,mr4 ,ross introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to e/abli% a program to provide re9surance = ,/ate natural cata/rophe insurance programs to help ! ,unit$ ,/ates bett] prep>e = & protect its citiz5s aga9/ ! ravages ( natural cata/rophes1 to enc\rage & promote mitigation & prev5tion =1 & recov]y & rebuild+ f su* cata/rophes1 & to bett] assi/ 9 ! f9ancial recov]y f su* cata/rophes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,home[n]s ,insurance ,protection ,act ( #bjac4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,congressional f9d+s4 ,sec4 #c4 ,national ,commission on ,cata/rophe ,prep>ation & ,protection4 ,sec4 #d4 ,program au?ority4 ,sec4 #e4 ,qualifi$ l9es ( cov]age4 ,sec4 #f4 ,cov]$ p]ils4 ,sec4 #g4 ,contracts = re9surance cov]age = eligible ,/ate programs4 ,sec4 #h4 ,treatm5t ( insur$ losses & maximum ,f$]al liability4 ,sec4 #i4 ,cata/rophe capital res]ve funds4 ,sec4 #aj4 ,consum] ,hurricane1 ,e>?quake1 ,loss ,protection 7,,help7 ,fund4 ,sec4 #aa4 ,annual /udy conc]n+ b5efits ( re9surance program4 ,sec4 #ab4 ,def9itions4 ,sec4 #ac4 ,regulations4 ,sec4 #ad4 ,t]m9ation4 #b4 ,congressional f9d+s ,! ,congress f9ds t-- 7#a7 ! ,unit$ ,/ates ne$s to take actions to be bett] prep>$ = & bett] protect$ f cata/rophes2 7#b7 ! hurricane seasons ( #bjjd & #bjje are />tl+ rem9d]s ( bo? ! human & economic deva/ation t hurricanes1 flood+1 & o!r natural disa/]s c cause2 7#c7 if a hurricane simil> to ! deadly #aijj ,galve/on hurricane occurr$ aga9 x c\ld cause ov] #cf1jjj1jjj1jjj 9 loss2 7#d7 if ! #aijd ,san ,francisco e>?quake occurr$ aga9 x c\ld cause ov] #djj1jjj1jjj1jjj 9 loss2 7#e7 if a ,category #e hurricane 7 to hit ,miami x c\ld cause ov] #ej1jjj1jjj1jjj 9 loss & deva/ate ! insurance indu/ry 9 ! ,unit$ ,/ates2 7#f7 if ! #aich ,long ,isl& ,express 7 to occur aga9 x c\ld cause ov] #cj1jjj1jjj1jjj 9 damage & if a hurricane t /rong 7 to directly hit ,manhattan x c\ld cause ov] #aej1jjj1jjj1jjj 9 damage & cause irrep>able h>m to our ,nation's economy2 7#g7 a m compreh5sive & integrat$ approa* to deal+ ) cata/rophes is ne$$2 7#h7 us+ hi/ory z a guide1 natural cata/rophes w inevitably place a trem5d\s /ra9 on home[n]s' insurance m>kets 9 _m areas1 w raise co/s = consum]s1 & w jeop>dize ! ability ( _m consum]s to adequately insure _! homes & possessions2 7#i7 ! lack ( suffici5t insurance capacity & ! inability ( private insur]s to build en\gh capital1 9 a %ort am\nt ( "t1 ?reat5s to increase ! numb] ( un9sur$ home[n]s1 :i*1 9 turn1 increases ! risk ( mortgage defaults & ! /ra9 on ! ,nation's bank+ sy/em2 7#aj7 "s ,/ates h int]v5$ to ensure ! cont9u$ availability & af=dability ( home[n]s' insurance = all resid5ts2 7#aa7 x is appropriate t ef=ts to improve insurance availability be design$ & implem5t$ at ! ,/ate level2 7#ab7 :ile ,/ate insurance programs may be adequate to cov] losses f mo/ natural disa/]s1 a small p]c5tage ( ev5ts are likely to exce$ ! f9ancial capacity ( ^! programs & ! local insurance m>kets2 7#ac7 mak+ available limit$ ,f$]al re9surance w\ld improve ! effectiv5ess ( ,/ate insurance programs & private insurance m>kets & w\ld increase ! likelihood t home[n]s' insurance claims w be fully paid 9 ! ev5t ( a l>ge natural cata/rophe & t r\t9e claims t occur aft] a mega-cata/rophe w also cont9ue to be paid2 7#ad7 x is necess>y to provide a ,f$]al re9surance program on a tempor>y basis t w provide m protection at an ov]all l[] co/ & t w promote /ability 9 ! home[n]s' insurance m>ket 9 ! %ort t]m & enc\rage gr[? ( re9surance capacity by ! private & capital m>kets z soon z practical2 7#ae7 x is ! prop] role ( ! ,f$]al ,gov]nm5t to prep>e = & protect its citiz5s f cata/rophes & to facilitate consum] protection1 victim assi/ance1 & recov]y1 includ+ f9ancial recov]y2 7#af7 any ,f$]al re9surance program mu/ be f\nd$ ^u s\nd actu>ial pr9ciples & pric$ 9 a mann] t m9imizes ! pot5tial impact on ! ,treasury ( ! ,unit$ ,/ates1 enc\rages ! creation ( ,/ate funds & maximizes ! buy+ pot5tial ( ^! ,/ate funds1 enc\rages & promotes prev5tion & mitigation1 recov]y & rebuild+1 & consum] education1 & emphasizes cont9u\s analysis & improvem5t2 & 7#ag7 su* a ,f$]al re9surance program %\ld n rema9 9 exi/5ce long] ?an necess>y = ! private entities or ! capital m>kets1 or bo?1 to provide adequate re9surance capacity to address ! home[n]s' insurance m>ket4 #c4 ,national ,commission on ,cata/rophe ,prep>ation & ,protection 7a7 ,e/abli%m5t ,! ,secret>y ( ! ,treasury %all e/abli% a commission to be kn[n z ! ,national ,commission on ,cata/rophe ,prep>ation & ,protection4 7b7 ,duties ,! ,commission %all meet = ! purpose ( advis+ ! ,secret>y reg>d+ ! e/imat$ loss co/s associat$ ) ! contracts = re9surance cov]age available "u ?is ,act & c>ry+ out ! functions specifi$ 9 ?is ,act1 includ+-- 7#a7 ! developm5t & implem5tation ( public education conc]n+ ! risks pos$ by natural cata/rophes2 7#b7 ! developm5t & implem5tation ( prev5tion1 mitigation1 recov]y1 & rebuild+ /&>ds t bett] prep>e & protect ! ,unit$ ,/ates f cata/rophes2 7#c7 ! e/abli%m5t ( requirem5ts "u section #g7;e7 to ensure t co/ sav+s result+ f ?is ,act inure to ! b5efit ( consum]s2 & 7#d7 conduct+ cont9u\s analysis ( ! effectiv5ess ( ?is ,act & recomm5d+ improvem5ts to ! ,congress s t ! co/s ( provid+ cata/rophe protection are decreas$ & s t ! ,unit$ ,/ates is bett] prep>$4 7c7 ,memb]s 7#a7 ,appo9tm5t & qualification ,! ,commission %all consi/ ( #i memb]s1 z foll[s3 7,a7 ,homel& security memb] ,! ,secret>y ( ,homel& ,security or ! ,secret>y's designee4 7,b7 ,appo9t$ memb]s ,eight memb]s appo9t$ by ! ,secret>y1 :o %all consi/ (-- 7i7 "o individual :o is an actu>y2 7ii7 "o individual :o is employ$ 9 eng9e]+2 7iii7 "o individual repres5t+ ! sci5tific community2 7iv7 "o individual repres5t+ prop]ty & casualty insur]s2 7v7 "o individual repres5t+ re9sur]s2 7vi7 "o individual :o is a memb] or =m] memb] ( ! ,national ,association ( ,insurance ,commission]s2 & 7vii7 two individuals :o are consum]s4 7#b7 ,prev5tion ( conflicts ( int]e/ ,memb]s %all h no p]sonal or f9ancial int]e/ at /ake 9 ! delib]ations ( ! ,commission4 7d7 ,treatm5t ( non-,f$]al memb]s ,ea* memb] ( ! ,commission :o is n o!rwise employ$ by ! ,f$]al ,gov]nm5t %all be consid]$ a special ,gov]nm5t employee = purposes ( sections #bjb & #bjh ( title #ah1 ,unit$ ,/ates ,code4 7e7 ,exp]ts & consultants ,! ,commission may procure tempor>y & int]mitt5t s]vices f individuals or gr\ps recogniz$ z exp]ts 9 ! fields ( meteorology1 seismology1 vulcanology1 geology1 /ructural eng9e]+1 w9d eng9e]+1 & hydrology1 & o!r fields1 "u section #caji7;b7 ( title #e1 ,unit$ ,/ates ,code1 b at a rate n 9 excess ( ! daily equival5t ( ! annual rate ( basic pay payable = level ,v ( ! ,executive ,s*$ule1 = ea* day dur+ :i* ! individual procur$ is p]=m+ su* s]vices = ! ,commission4 ,! ,commission may also procure1 & ! ,congress enc\rages ! ,commission to procure1 exp]ts f univ]sities1 rese>* c5t]s1 f\ndations1 & o!r appropriate organizations :o c\ld /udy1 rese>*1 & develop me?ods & me*anisms t c\ld be utiliz$ to /r5g!n /ructures to bett] )/& ! p]ils cov]$ by ?is ,act4 7f7 ,comp5sation ,ea* memb] ( ! ,commission :o is n an (fic] or employee ( ! ,f$]al ,gov]nm5t %all be comp5sat$ at a rate ( basic pay payable = level ,v ( ! ,executive ,s*$ule1 = ea* day 7includ+ travel "t7 dur+ :i* su* memb] is engag$ 9 ! p]=mance ( ! duties ( ! ,commission4 ,all memb]s ( ! ,commission :o are (fic]s or employees ( ! ,unit$ ,/ates %all s]ve )\t comp5sation 9 addition to t receiv$ = _! s]vices z (fic]s or employees ( ! ,unit$ ,/ates4 7g7 ,obta9+ data ,! ,commission & ! ,secret>y may solicit loss exposure data & su* o!r in=mation ei!r deems necess>y to c>ry out its responsibilities f gov]nm5tal ag5cies & bodies & organizations t act z /ati/ical ag5ts = ! insurance indu/ry4 ,! ,commission & ! ,secret>y %all take su* actions z are necess>y to ensure t in=mation t ei!r deems is confid5tial or propriet>y is disclos$ only to au?oriz$ individuals work+ = ! ,commission or ! ,secret>y4 ,no company :i* refuses to provide in=mation reque/$ by ! ,commission or ! ,secret>y may p>ticipate 9 ! program = re9surance cov]age au?oriz$ "u ?is ,act1 nor may any ,/ate insurance or re9surance program p>ticipate if any gov]nm5tal ag5cy )9 t ,/ate has refus$ to provide in=mation reque/$ by ! ,commission or ! ,secret>y4 7h7 ,fund+ 7#a7 ,au?orization ( appropriations ,!re is au?oriz$ to be appropriat$-- 7,a7 #aj1jjj1jjj = fiscal ye> #bjad = ! initial exp5ses 9 e/abli%+ ! ,commission & ! initial activities ( ! ,commission t _c timely be cov]$ by am\nts obta9$ pursuant to section #g7;b77#f77;,b77iii71 z det]m9$ by ! ,secret>y2 7,b7 su* additional sums z may be necess>y to c>ry out subsequ5t activities ( ! ,commission2 7,c7 #aj1jjj1jjj = fiscal ye> #bjad = ! initial exp5ses ( ! ,secret>y 9 c>ry+ out ! program au?oriz$ "u section #d2 & 7,d7 su* additional sums z may be necess>y to c>ry out subsequ5t activities ( ! ,secret>y "u ?is ,act4 7#b7 ,(fset ,! ,secret>y %all provide1 to ! maximum ext5t practicable1 t an am\nt equal to any am\nt appropriat$ "u p>agraph 7#a7 is obta9$ f pur*as]s ( re9surance cov]age "u ?is ,act & deposit$ 9 ! ,fund e/abli%$ "u section #aj4 ,su* am\nts %all be obta9$ by inclusion ( a provision = ! ,secret>y's & ! ,commission's exp5ses incorporat$ into ! pric+ ( ! contracts = su* re9surance cov]age1 pursuant to section #g7;b77#f77;,b77iii74 7i7 ,t]m9ation ,! ,commission %all t]m9ate ^u ! effective date ( ! repeal "u section #ad7;c74 #d4 ,program au?ority 7a7 ,9 g5]al ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,homel& ,security1 %all c>ry out a program "u ?is ,act to improve ! availability & af=dability ( home[n]s protection cov]age by mak+ available = pur*ase1 only by eligible ,/ate programs1 contracts = re9surance cov]age "u section #g4 7b7 ,purpose ,! program %all be design$ to make re9surance cov]age "u ?is ,act available-- 7#a7 to improve ! availability & af=dability ( home[n]s' insurance = ! purpose ( facilitat+ ! pool+1 & spread+ ! risk1 ( cata/rophic f9ancial losses f natural cata/rophes2 7#b7 to improve ! solv5cy & capacity ( home[n]s' insurance m>kets2 7#c7 to enc\rage ! developm5t & implem5tation ( mitigation1 prev5tion1 recov]y1 & rebuild+ /&>ds2 & 7#d7 to recomm5d me?ods to cont9u\sly improve ! way ! ,unit$ ,/ates reacts & responds to cata/rophes1 includ+ improvem5ts to ! ,,help ,fund e/abli%$ "u section #aj4 7c7 ,contract pr9ciples ,"u ! program "u ?is ,act1 ! ,secret>y %all (f] re9surance cov]age ?r\gh contracts ) cov]$ pur*as]s1 :i* contracts-- 7#a7 %all n displace or compete ) ! private insurance or re9surance m>kets or ! capital m>ket2 7#b7 %all m9imize ! adm9i/rative co/s ( ! ,f$]al ,gov]nm5t2 & 7#c7 %all provide cov]age bas$ solely on insur$ losses )9 ! ,/ate = ! eligible ,/ate program pur*as+ ! contract4 #e4 ,qualifi$ l9es ( cov]age ,ea* contract = re9surance cov]age made available "u ?is ,act %all provide insurance cov]age aga9/ resid5tial prop]ty losses to homes 7includ+ dwell+s own$ "u condom9ium & coop]ative own]%ip arrangem5ts7 & ! cont5ts ( ap>tm5t build+s4 #f4 ,cov]$ p]ils ,ea* contract = re9surance cov]age made available "u ?is ,act %all cov] losses insur$ or re9sur$ by ! eligible ,/ate program pur*as+ ! contract t are proximately caus$ by-- 7#a7 e>?quakes2 7#b7 p]ils ensu+ f e>?quakes1 includ+ fire & tsunamis2 7#c7 tropical cyclones hav+ maximum su/a9$ w9ds ( at lea/ #gd miles p] h\r1 includ+ hurricanes & typhoons2 7#d7 tornadoes2 7#e7 volcanic eruptions2 7#f7 cata/rophic w9t] /orms2 & 7#g7 any o!r natural cata/rophe 7n includ+ any flood7 insur$ or re9sur$ "u ! eligible ,/ate program = :i* re9surance cov]age "u section #g is provid$4 ,! ,secret>y %all1 by regulation1 def9e ! natural cata/rophe p]ils "u ?is section4 #g4 ,contracts = re9surance cov]age = eligible ,/ate programs 7a7 ,eligible ,/ate programs ,a program %all be eligible to pur*ase a contract "u ?is section = re9surance cov]age "u ?is ,act only if ! ,/ate entity au?oriz$ to make su* det]m9ations c]tifies to ! ,secret>y t ! program complies ) ! foll[+ requirem5ts3 7#a7 ,program design ,! program %all be a ,/ate-op]at$-- 7,a7 insurance program t-- 7i7 (f]s cov]age = homes 7:i* may include dwell+s own$ "u condom9ium & coop]ative own]%ip arrangem5ts7 & ! cont5ts ( ap>tm5ts to ,/ate resid5ts2 & 7ii7 is au?oriz$ by ,/ate law2 or 7,b7 re9surance program t is design$ to improve private insurance m>kets t (f] cov]age = homes 7:i* may include dwell+s own$ "u condom9ium & coop]ative own]%ip arrangem5ts7 & ! cont5ts ( ap>tm5ts because ( a f9d+ by ! ,/ate insurance commission] or o!r ,/ate entity au?oriz$ to make su* a det]m9ation t su* program is necess>y 9 ord] to provide = ! cont9u$ availability ( su* resid5tial cov]age = all resid5ts4 7#b7 ,op]ation ,! program %all meet ! foll[+ requirem5ts3 7,a7 ,a majority ( ! memb]s ( ! gov]n+ body ( ! program %all be public (ficials4 7,b7 ,! ,/ate %all h a f9ancial int]e/ 9 ! program1 :i* %all n include a program au?oriz$ by ,/ate law or regulation t requires insur]s to pool res\rces to provide prop]ty insurance cov]age = cov]$ p]ils4 7,c7 ,if ! ,/ate has at any "t appropriat$ am\nts f ! ,/ate fund = ! ,/ate program = any purpose o!r ?an paym5ts "u ! program1 ! ,/ate %all h repaid su* am\nts to ! ,/ate fund1 toge!r ) int]e/ on su* am\nts4 7#c7 ,tax /atus ,! program %all be /ructur$ & c>ri$ out 9 a mann] s t ! program is exempt f all ,f$]al taxation4 7#d7 ,cov]age ,! program %all cov] all p]ils specifi$ 9 section #f4 7#e7 ,e>n+s ,! program may n provide =1 nor %all h ev] made1 any r$i/ribution ( any "p ( any net pr(its ( ! program to any insur] t p>ticipates 9 ! program4 7#f7 ,prev5tion & mitigation ,! program %all include prev5tion & mitigation provisions t require t n less ?an #aj1jjj1jjj & n m ?an #ce p]c5t ( ! net inve/m5t income ( ! ,/ate insurance or re9surance program be us$ = programs to mitigate losses f natural cata/rophes = :i* ! ,/ate insurance or re9surance program 0 e/abli%$4 ,= purposes ( ?is p>agraph1 prev5tion & mitigation %all include me?ods to r$uce losses ( life & prop]ty1 includ+ appropriate measures to adequately reflect-- 7,a7 enc\ragem5t ( aw>5ess ab\t ! risk factors & :at c be done to elim9ate or r$uce !m2 7,b7 location ( ! risk1 by giv+ c>eful consid]ation ( ! natural risks = ! location ( ! prop]ty be=e all[+ build+ & consid]ations if /ructures are all[$2 & 7,c7 con/ruction relative to ! risk & haz>ds1 :i* act ^u-- 7i7 ,/ate m&at$ build+ codes appropriate = ! risk2 7ii7 adequate en=cem5t ( ! risk-appropriate build+ codes2 7iii7 build+ mat]ials t prev5t or significantly less5 pot5tial damage f ! natural cata/rophes2 7iv7 build+ me?ods t prev5t or significantly less5 pot5tial damage f ! natural cata/rophes2 & 7v7 a focus on prev5tion & mitigation = any sub/antially damag$ /ructure1 ) an emphasis on h[ /ructures c be retr(itt$ s z to make !m build+ code compliant4 7#g7 ,requirem5ts reg>d+ cov]age 7,a7 ,9 g5]al ,! program-- 7i7 may n1 except = *>ges or assessm5ts relat$ to po/-ev5t f9anc+ or bond+1 involve cross-subsidization betwe5 any sep>ate prop]ty & casualty l9es cov]$ "u ! program unless ! elim9ation ( su* activity 9 an exi/+ program w\ld negatively impact ! eligibility ( ! program to pur*ase a contract = re9surance cov]age "u ?is ,act pursuant to p>agraph 7#c72 7ii7 %all include provisions t au?orize ! ,/ate insurance commission] or o!r ,/ate entity au?oriz$ to make su* a det]m9ation to t]m9ate ! program if ! insurance commission] or o!r su* entity det]m9es t ! program is no long] necess>y to ensure ! availability ( home[n]s' insurance = all resid5ts ( ! ,/ate2 & 7iii7 %all provide t1 = any insurance cov]age = homes 7:i* may include dwell+s own$ "u condom9ium & coop]ative own]%ip arrangem5ts7 & ! cont5ts ( ap>tm5ts t is made available "u ! ,/ate insurance program & = any re9surance cov]age = su* insurance cov]age made available "u ! ,/ate re9surance program1 ! premium rates *>g$ %all be am\nts t1 at a m9imum1 are suffici5t to cov] ! full actu>ial co/s ( su* cov]age1 bas$ on consid]ation ( ! risks involv$ & accept$ actu>ial & rate mak+ pr9ciples1 anticipat$ adm9i/rative exp5ses1 & loss & loss-adju/m5t exp5ses4 7,b7 ,applicability ,?is p>agraph %all apply aft] ! expiration ( ! #b-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act4 7#h7 ,prohibition ( competition ) private m>ket ,any insurance or re9surance cov]age1 z applicable1 made available ?r\gh ! ,/ate program %all n supplant cov]age t is o!rwise reasonably available & af=dable 9 ! private m>ket4 7#i7 ,o!r qualifications 7,a7 ,9 g5]al ,! ,/ate program %all 7= ! ye> = :i* ! cov]age is 9 effect7 comply ) regulations t %all be issu$ "u ?is p>agraph by ! ,secret>y1 9 consultation ) ! ,commission4 ,! regulations %all e/abli% crit]ia = ,/ate programs to qualify to pur*ase re9surance "u ?is section1 :i* are 9 addition to ! requirem5ts "u ! o!r p>agraphs ( ?is subsection4 7,b7 ,cont5ts ,! regulations issu$ "u ?is p>agraph %all include requirem5ts t-- 7i7 ! ,/ate program %all h public memb]s on its bo>d ( directors or h an advisory bo>d ) public memb]s2 7ii7 ! ,/ate program provide adequate insurance or re9surance protection1 z applicable1 = ! p]ils cov]$1 :i* %all include a range ( d$uctibles & premium co/s t reflect ! applicable risks to eligible prop]ties2 7iii7 insurance or re9surance cov]age1 z applicable1 provid$ by ! ,/ate program is made available on a nondiscrim9atory basis to all qualify+ resid5ts2 7iv7 any new con/ruction1 sub/antial rehabilitation1 & r5ovation insur$ or re9sur$ by ! program complies ) applicable ,/ate or local gov]nm5t build+1 fire1 & safety codes2 7v7 ! ,/ate1 or appropriate local gov]nm5ts )9 ! ,/ate1 h 9 effect & en=ce nationally recogniz$ model build+1 fire1 & safety codes & cons5sus-bas$ /&>ds t (f] risk responsive resi/ance t is sub/antially equival5t or great] ?an ! resi/ance to e>?quakes or high w9ds2 7vi7 ! ,/ate has tak5 actions to e/abli% an insurance rate /ructure t takes into acc\nt measures to mitigate insurance losses2 7vii7 !re are 9 effect1 9 su* ,/ate1 laws or regulations suffici5t to prohibit price g\g+1 dur+ ! t]m ( re9surance cov]age "u ?is ,act = ! ,/ate program 9 any disa/] area locat$ )9 ! ,/ate2 & 7viii7 ! ,/ate program complies ) su* o!r requirem5ts t ! ,secret>y consid]s necess>y to c>ry out ! purposes ( ?is ,act4 7b7 ,t]ms ( contracts ,ea* contract "u ?is section = re9surance cov]age "u ?is ,act %all be subject to ! foll[+ t]ms & conditions3 7#a7 ,maturity ,! t]m ( ! contract %all n exce$ #a ye> or su* o!r t]m z ! ,secret>y may det]m9e4 7#b7 ,paym5t condition ,! contract %all au?orize claims paym5ts only = eligible losses to ! eligible ,/ate program pur*as+ ! cov]age4 7#c7 ,reta9$ losses requirem5t ,= ea* ev5t ( a cov]$ p]il1 ! contract %all make a paym5t = ! ev5t only if ! total am\nt ( insurance claims = losses1 :i* are cov]$ by qualifi$ l9es1 occur to prop]ties locat$ )9 ! ,/ate cov]$ by ! contract1 & t result f insur$ losses 7z def9$ 9 section #ab7 = ! ,/ate program1 exce$s ! am\nt ( reta9$ losses provid$ "u ! contract 7pursuant to section #h7;a77 pur*as$ by ! eligible ,/ate program4 7#d7 ,multiple ev5ts ,! contract %all cov] any eligible losses f "o or m cov]$ ev5ts t may occur dur+ ! t]m ( ! contract & %all provide t if multiple ev5ts occur1 ! reta9$ losses requirem5t "u p>agraph 7#c7 %all apply on a cal5d> ye> basis1 9 ! aggregate & n sep>ately to ea* individual ev5t4 7#e7 ,tim+ ( eligible losses ,eligible losses "u ! contract %all include only insurance claims = prop]ty cov]$ by qualifi$ l9es t are report$ to ! eligible ,/ate program )9 ! #c-ye> p]iod beg9n+ ^u ! ev5t or ev5ts = :i* paym5t "u ! contract is provid$4 7#f7 ,pric+ 7,a7 ,det]m9ation ,! price ( re9surance cov]age "u ! contract %all be an am\nt e/abli%$ by ! ,secret>y z foll[s3 7i7 ,recomm5dations ,! ,secret>y %all take into consid]ation ! recomm5dations ( ! ,commission 9 e/abli%+ ! price1 b ! price may n be less ?an ! am\nt recomm5d$ by ! ,commission4 7ii7 ,fairness to taxpay]s ,! price %all be e/abli%$ at a level t is design$ to reflect ! risks & co/s be+ borne "u ea* re9surance contract issu$ "u ?is ,act & t takes into consid]ation empirical models ( natural disa/]s & ! capacity ( private m>kets to absorb insur$ losses f natural disa/]s4 7iii7 ,self-suffici5cy ,! rates = re9surance cov]age %all be e/abli%$ at a level t annually produces expect$ premiums t %all be suffici5t to pay ! expect$ annualiz$ co/ ( all claims1 loss adju/m5t exp5ses1 & all adm9i/rative co/s ( re9surance cov]age (f]$ "u ?is section4 7,b7 ,compon5ts ,! price %all consi/ ( ! foll[+ compon5ts3 7i7 ,risk-bas$ price ,a risk-bas$ price1 :i* %all reflect ! anticipat$ annualiz$ pay\t ( ! contract accord+ to ! actu>ial analysis & recomm5dations ( ! ,commission4 7ii7 ,risk load ,a risk load 9 an am\nt t is n less ?an ! risk-bas$ price "u clause 7i74 ,9 e/abli%+ risk loads "u ?is clause1 ! ,secret>y %all take into consid]ation comp>able private risk loads4 7iii7 ,adm9i/rative co/s ,a sum suffici5t to provide = ! op]ation ( ! ,commission & ! adm9i/rative exp5ses incurr$ by ! ,secret>y 9 c>ry+ out ?is ,act4 7#g7 ,in=mation ,! contract %all conta9 a condition provid+ t ! ,commission may require ! ,/ate program t is cov]$ "u ! contract to submit to ! ,commission all in=mation on ! ,/ate program relevant to ! duties ( ! ,commission1 z det]m9$ by ! ,secret>y4 7#h7 ,additional contract option ,! contract %all provide t ! pur*as] ( ! contract may1 dur+ ! t]m ( su* orig9al contract1 pur*ase additional contracts f among ^? (f]$ by ! ,secret>y at ! beg9n+ ( ! t]m1 subject to ! limitations "u section #h1 at ! prices at :i* su* contracts 7 (f]$ at ! beg9n+ ( ! t]m1 prorat$ bas$ ^u ! rema9+ t]m z det]m9$ by ! ,secret>y4 ,su* additional contracts %all provide cov]age beg9n+ on a date #ae days aft] ! date ( pur*ase b %all n provide cov]age = losses = an ev5t t has already occurr$4 7#i7 ,o!rs ,! contract %all conta9 su* o!r t]ms z ! ,secret>y consid]s necess>y to c>ry out ?is ,act & to ensure ! long-t]m f9ancial integrity ( ! program "u ?is ,act4 7c7 ,private sector "r ,to p>ticipate 7#a7 ,e/abli%m5t ( competitive proc$ure ,! ,secret>y %all e/abli%1 by regulation1 a competitive proc$ure "u ?is subsection t provides qualifi$ entities an opportunity1 on a basis consi/5t ) ! contract cycle e/abli%$ "u ?is ,act by ! ,secret>y1 to (f] to provide1 9 lieu ( re9surance cov]age "u ?is section1 re9surance cov]age t is sub/antially simil> to cov]age o!rwise made available "u ?is section4 7#b7 ,competitive proc$ure ,"u ! proc$ure e/abli%$ "u ?is subsection-- 7,a7 ! ,secret>y %all e/abli% crit]ia = private insur]s1 re9sur]s1 & capital m>ket companies1 & consortia ( su* entities to be treat$ z qualifi$ entities = purposes ( ?is subsection1 :i* crit]ia %all require su* an entity to h at all times capital suffici5t to satisfy ! t]ms ( ! re9surance contracts & %all include su* o!r indu/ry & cr$it rat+ /&>ds z ! ,secret>y consid]s appropriate2 7,b7 n less ?an #cj days be=e ! beg9n+ ( ea* contract cycle dur+ :i* any re9surance cov]age "u ?is section is to be made available1 ! ,secret>y may reque/ proposals & %all publi% 9 ! ,f$]al ,regi/] ! rates & t]ms = contracts = re9surance cov]age "u ?is section t are to be made available dur+ su* contract cycle2 7,c7 ! ,secret>y %all provide qualifi$ entities a p]iod ( n less ?an #aj days 7:i* %all t]m9ate n less ?an #bj days be=e ! beg9n+ ( ! contract cycle7 to submit to ! ,secret>y a writt5 expression ( int]e/ 9 provid+ re9surance cov]age 9 lieu ( ! cov]age o!rwise to be made available "u ?is section2 7,d7 ! ,secret>y %all provide any qualifi$ entity submitt+ an expression ( int]e/ dur+ ! p]iod ref]r$ to 9 subp>agraph 7,c7 a p]iod ( n less ?an #bj days 7:i* %all t]m9ate be=e ! beg9n+ ( ! contract cycle7 to submit to ! ,secret>y an (f] to provide1 9 lieu ( ! re9surance cov]age o!rwise to be made available "u ?is section1 cov]age t is sub/antially simil> to su* cov]age2 7,e7 if ! ,secret>y det]m9es t an (f] submitt$ dur+ ! p]iod ref]r$ to 9 subp>agraph 7,d7 is a bona fide (f] to provide re9surance cov]age dur+ ! contract cycle at rates & t]ms t are sub/antially simil> to ! rates & t]ms = re9surance cov]age o!rwise to be provid$ "u ?is section by ! ,secret>y1 ! ,secret>y %all accept ! (f] 7if /ill out/&+7 &1 not)/&+ any o!r provision ( ?is ,act1 provide = su* entity to make re9surance cov]age available 9 accordance ) ! (f]2 & 7,f7 if ! ,secret>y accepts an (f] pursuant to subp>agraph 7,e7 to make re9surance cov]age available1 not)/&+ any o!r provision ( ?is ,act1 ! ,secret>y %all r$uce1 to an equival5t ext5t1 ! am\nt ( re9surance cov]age available "u ?is section dur+ ! contract cycle to :i* ! (f] relates1 unless & until ! ,secret>y det]m9es t ! entity is n comply+ ) ! t]ms ( ! accept$ (f]4 7d7 ,p>ticipation by multi-,/ate cata/rophe fund programs ,no?+ 9 ?is ,act %all prohibit ! creation ( multi-,/ate cata/rophe insurance or re9surance programs1 or ! p>ticipation by su* programs 9 ! program e/abli%$ pursuant to section #d4 ,! ,secret>y %all1 by regulation1 apply ! provisions ( ?is ,act to multi-,/ate cata/rophe insurance & re9surance programs4 7e7 ,requirem5t = insur]s ,to pass ?r\gh sav+s to consum]s ,not)/&+ any o!r provision ( ?is ,act1 a ,/ate program %all n be eligible to pur*ase a contract = re9surance cov]age made available "u ?is ,act unless su* ,/ate has 9 effect su* laws1 regulations1 or o!r requirem5ts1 z ! ,secret>y %all by regulation require1 t-- 7#a7 to ! ext5t t re9surance cov]age made available "u ! program "u ?is ,act results 9 any co/ sav+s 9 provid+ insurance cov]age = risks 9 su* ,/ate1 su* co/ sav+s be reflect$ 9 premium rates *>g$ to consum]s = su* cov]age2 & 7#b7 ! ,/ate take su* actions z ! ,secret>y consid]s appropriate to ensure t ! requirem5t "u p>agraph 7#a7 is c>ri$ out & en=c$4 #h4 ,treatm5t ( insur$ losses & maximum ,f$]al liability 7a7 ,available levels ( reta9$ losses ,9 mak+ re9surance cov]age available "u ?is ,act1 ! ,secret>y %all make available = pur*ase contracts = su* cov]age t require ! su/a9m5t ( reta9$ losses f cov]$ p]ils 7z requir$ "u section #g7;b77#c7 = paym5t ( eligible losses7 9 v>i\s am\nts1 z ! ,secret>y1 9 consultation ) ! ,commission1 det]m9es appropriate & subject to ! requirem5ts "u subsection 7b74 7b7 ,m9imum level ( reta9$ losses 7#a7 ,am\nt ,subject to p>agraph 7#b7 & not)/&+ any o!r provision ( ?is ,act1 a contract = re9surance cov]age "u section #g = an eligible ,/ate program t (f]s insurance or re9surance cov]age describ$ 9 subp>agraph 7,a7 or 7,b71 respectively1 ( section #g7;a77#a7 may n be made available or sold unless ! contract requires t ! ,/ate program su/a9 an am\nt ( reta9$ losses f cov]$ p]ils 9 ! foll[+ am\nt3 7,a7 ,9 g5]al ,! ,/ate program %all su/a9 an am\nt ( reta9$ losses ( n less ?an ! great] (-- 7i7 ! claims-pay+ capacity ( ! eligible ,/ate program1 z det]m9$ by ! ,secret>y2 & 7ii7 an am\nt1 det]m9$ by ! ,secret>y 9 consultation ) ! ,commission1 t is ! am\nt equal to ! eligible losses project$ to be incurr$ once e #bjj ye>s on an annual basis f cov]$ p]ils4 7,b7 ,transition rule = new programs 7i7 #bjj-ye> ev5t ,! ,secret>y may provide t1 9 ! case ( an eligible ,/ate program t1 aft] ! date ( ! enactm5t ( ?is ,act1 comm5ces (f]+ insurance or re9surance cov]age1 dur+ ! #g-ye> p]iod beg9n+ on ! date t re9surance cov]age "u section #g is fir/ made available1 ! m9imum level ( reta9$ losses applicable "u ?is p>agraph %all be ! am\nt det]m9$ = ! ,/ate "u subp>agraph 7,a77i71 except t su* m9imum level %all be adju/$ annually z provid$ 9 clause 7ii7 ( ?is subp>agraph4 7ii7 ,annual adju/m5t ,ea* annual adju/m5t "u ?is clause %all increase ! m9imum level ( reta9$ losses applicable "u ?is subp>agraph to an eligible ,/ate program describ$ 9 clause 7i7 9 a mann] su* t-- 7,i7 dur+ ! c\rse ( su* #g-ye> p]iod1 ! applicable m9imum level ( reta9$ losses approa*es ! m9imum level t1 "u subp>agraph 7,a77ii71 w apply to ! eligible ,/ate program ^u ! expiration ( su* p]iod2 & 7,,ii7 ea* su* annual increase is a sub/antially simil> am\nt1 to ! ext5t practicable4 7,c7 ,r$uction because ( r$uc$ claims-pay+ capacity 7i7 ,au?ority ,not)/&+ subp>agraphs 7,a71 7,b71 & 7,c7 or ! t]ms conta9$ 9 a contract = re9surance pursuant to su* subp>agraphs1 if ! ,secret>y det]m9es t ! claims-pay+ capacity ( an eligible ,/ate program has be5 r$uc$ because ( paym5t = losses due to an ev5t1 ! ,secret>y may r$uce ! m9imum level ( reta9$ losses4 7ii7 ,t]m ( r$uction ,! ,secret>y may ext5d ! #e-ye> p]iod = n m ?an #e additional #a-ye> p]iods if ! ,secret>y det]m9es t losses incurr$ by ! ,/ate program z a result ( cov]$ p]ils create excessive h>d%ip on ! ,/ate program4 ,! ,secret>y %all consult ) ! appropriate (ficials ( ! ,/ate program reg>d+ ! requir$ s*$ule & any pot5tial #a-ye> ext5sions4 7,d7 ,claims-pay+ capacity ,= purposes ( ?is p>agraph1 ! claims-pay+ capacity ( a ,/ate-op]at$ insurance or re9surance program "u section #g7;a77#a7 %all be det]m9$ by ! ,secret>y1 9 consultation ) ! ,commission1 tak+ into consid]ation ! claims-pay+ capacity z det]m9$ by ! ,/ate program1 reta9$ losses to private insur]s 9 ! ,/ate 9 an am\nt assign$ by ! ,/ate insurance commission]1 ! ca% surplus ( ! program1 & ! l9es ( cr$it1 re9surance1 & o!r f9anc+ me*anisms ( ! program e/abli%$ by law4 7#b7 ,initial adju/m5t bas$ on private m>ket ,! ,secret>y may1 be=e mak+ contracts = re9surance cov]age "u ?is ,act initially available "u section #g1 raise ! m9imum level ( reta9$ losses f ! am\nt requir$ "u p>agraph 7#a7 = an eligible ,/ate program to ensure1 z det]m9$ by ! ,secret>y1 t su* contracts comply ) ! pr9ciple "u section #d7;c77#a74 7c7 #ij p]c5t cov]age ( insur$ losses 9 excess ( reta9$ losses ,ea* contract = re9surance cov]age "u ?is ,act = a cov]$ pur*as] %all provide t ! am\nt paid out "u ! contract %all1 subject to subsection 7d71 be equal to #ij p]c5t ( ! am\nt ( insur$ losses ( ! eligible ,/ate program ( ! pur*as] 9 excess ( ! am\nt ( reta9$ losses t ! contract requires1 pursuant to subsection 7b71 to be incurr$ by su* program4 7d7 ,maximum ,f$]al liability 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 ! ,secret>y may sell only contracts = re9surance cov]age "u ?is ,act 9 v>i\s am\nts t comply ) ! foll[+ requirem5ts3 7,a7 ,e/imate ( aggregate liability ,! aggregate liability = paym5t ( claims "u all su* contracts 9 any s+le ye> is unlikely to exce$ #bjj1jjj1jjj1jjj 7z su* am\nt is adju/$ "u p>agraph 7#b774 7,b7 ,eligible loss cov]age sold ,eligible losses cov]$ by all contracts sold )9 a ,/ate dur+ a #ab-mon? p]iod d n exce$ ! diff]5ce betwe5 ! foll[+ am\nts 7ea* ( :i* %all be det]m9$ by ! ,secret>y 9 consultation ) ! ,commission73 7i7 ,! am\nt equal to ! eligible loss project$ to be incurr$ once e #ejj ye>s f a s+le ev5t 9 ! ,/ate4 7ii7 ,! am\nt equal to ! eligible loss project$ to be incurr$ once e #bjj ye>s f a s+le ev5t 9 ! ,/ate4 7#b7 ,annual adju/m5ts ,! ,secret>y %all annually adju/ ! am\nt "u p>agraph 7#a77;,a7 7z x may h be5 previ\sly adju/$7 to provide = inflation 9 accordance ) an inflation index t ! ,secret>y det]m9es to be appropriate4 #i4 ,cata/rophe capital res]ve funds 7a7 ,e/abli%m5t ,any insur] :o p>ticipates 9 an eligible ,/ate program "u section #g7;a7 may e/abli% a ,cata/rophe ,capital ,res]ve ,fund 79 ?is section ref]r$ to z a res]ve fund7 9 :i* x may hold funds 9 a fiduci>y capacity on behalf ( ! ,secret>y4 7b7 ,fund+ ,an insur] may fund a res]ve fund by mak+ an election1 9 advance1 to treat "s or all ( ! premiums receiv$ = su* cov]age z *>ges impos$ by ! ,secret>y = p>ticipation 91 & op]ation (1 ! program = re9surance cov]age "u ?is ,act4 ,any su* premiums = :i* su* an election has be5 made %all be ma9ta9$ 9 a segregat$ acc\nt 9 a fiduci>y capacity on behalf ( ! ,secret>y4 ,su* funds may be inve/$ 9 any o!rwise legally p]missible mann] b all int]e/1 divid5ds1 & capital accumulations also %all be reta9$ 9 su* segregat$ acc\nt on behalf ( ! ,secret>y4 7c7 ,use ,am\nts 9 a res]ve fund e/abli%$ pursuant to ?is section %all be collect$ & us$ by ! ,secret>y to (fset1 9 :ole or 9 "p1 ! co/ to ! ,secret>y ( claims paid "u re9surance cov]age provid$ "u ! program1 except t1 9 ! case only ( a s+le ev5t t results 9 an am\nt ( eligible losses to insur]s t is equal to or great] ?an ! am\nt ( su* losses project$ to be incurr$ f a s+le ev5t hav+ an ext5t ( su* losses su* t ! ev5t has a #a4j p]c5t *ance ( occurr+ 9 any ye>1 an insur] may fir/ use ! funds 9 a res]ve fund ( ! insur] to satisfy any "o or m ( ! foll[+3 7#a7 ,! reta9$ losses = ! insur] requir$ "u section #h7;b74 7#b7 ,! portion ( ! insur]'s losses t exce$ ! requir$ reta9$ losses b are n comp5sat$ "u a re9surance contract made available "u ! ,program pursuant to section #h7;c74 7#c7 ,! insur]'s obligations to pay = insur$ losses if any conditions prec$5t to paym5t "u a contract = re9surance made available "u ! ,program are n met4 7#d7 ,any risk-%>+ obligations t ! insur] may h ent]$ into4 7d7 ,t]m9ation 7#a7 ,t]m9ation ( program ,^u t]m9ation "u section #ad ( ! program "u ?is ,act1 & subject to ! cont9u+ au?ority ( ! ,secret>y to adju/ claims 9 satisfaction ( contracts = re9surance 9 =ce "u ! ,program1 #aj p]c5t ( ea* insur]'s res]ve funds %all be remitt$ to ! ,secret>y & ! rema9d] %all be remitt$ to ! insur]4 ,! ,secret>y %all det]m9e ! mann] 9 :i* ! remittance ( su* income to ! insur] %all be made4 7#b7 ,elim9ation ( cov]age ( insur$ losses 9 excess ( reta9$ losses ,if at any "t ! ,program rema9s 9 effect b contracts = re9surance "u ! ,program d n provide any paym5t = insur$ losses 9 excess ( reta9$ losses1 ! res]ve funds %all be reta9$ & us$ = ! purposes set =? 9 subsection 7c7 ( ?is section4 ,at su* "t z an insur]'s liability = insur$ losses "u ! ,program t]m9ates1 z a consequ5ce ( ! insur]'s t]m9ation ( its bus9ess or o!rwise1 ! insur] %all remit any am\nts rema9+ 9 its res]ve funds to ! ,secret>y4 #aj4 ,consum] ,hurricane1 ,e>?quake1 ,loss ,protection 7,,help7 ,fund 7a7 ,e/abli%m5t ,!re is e/abli%$ )9 ! ,treasury ( ! ,unit$ ,/ates a fund to be kn[n z ! ,consum] ,,help ,fund 79 ?is section ref]r$ to z ! ,fund74 7b7 ,cr$its ,! ,fund %all be cr$it$ )-- 7#a7 am\nts receiv$ annually f ! sale ( contracts = re9surance cov]age "u ?is ,act2 7#b7 any am\nts borr[$ "u subsection 7d72 7#c7 any am\nts e>n$ on inve/m5ts ( ! ,fund pursuant to subsection 7e72 & 7#d7 su* o!r am\nts z may be cr$it$ to ! ,fund4 7c7 ,uses ,am\nts 9 ! ,fund %all be available to ! ,secret>y only = ! foll[+ purposes3 7#a7 ,contract paym5ts ,= paym5ts to cov]$ pur*as]s "u contracts = re9surance cov]age = eligible losses "u su* contracts4 7#b7 ,commission co/s ,to pay = ! op]at+ co/s ( ! ,commission4 7#c7 ,adm9i/rative exp5ses ,to pay = ! adm9i/rative exp5ses incurr$ by ! ,secret>y 9 c>ry+ out ! re9surance program "u ?is ,act4 7#d7 ,t]m9ation ,^u t]m9ation "u section #ad1 z provid$ 9 su* section4 7d7 ,borr[+ 7#a7 ,au?ority ,to ! ext5t t ! am\nts 9 ! ,fund are insuffici5t to pay claims & exp5ses "u subsection 7c71 ! ,secret>y may issue su* obligations ( ! ,fund z may be necess>y to cov] ! insuffici5cy & %all pur*ase any su* obligations issu$4 7#b7 ,public debt transaction ,= ! purpose ( pur*as+ any su* obligations1 ! ,secret>y may use z a public debt transaction ! proce$s f ! sale ( any securities issu$ "u *apt] #ca ( title #ca1 ,unit$ ,/ates ,code1 & ! purposes = :i* securities are issu$ "u su* *apt] are h]eby ext5d$ to include any pur*ase by ! ,secret>y ( su* obligations "u ?is subsection4 7#c7 ,*>act]i/ics ( obligations ,obligations issu$ "u ?is subsection %all be 9 su* =ms & d5om9ations1 be> su* maturities1 be> int]e/ at su* rate1 & be subject to su* o!r t]ms & conditions1 z ! ,secret>y %all det]m9e4 7#d7 ,treatm5t ,all r$emptions1 pur*ases1 & sales by ! ,secret>y ( obligations "u ?is subsection %all be treat$ z public debt transactions ( ! ,unit$ ,/ates4 7#e7 ,repaym5t ,any obligations issu$ "u ?is subsection %all be repaid includ+ int]e/1 f ! ,fund & %all be rec\p$ f premiums *>g$ = re9surance cov]age provid$ "u ?is ,act4 7e7 ,inve/m5t ,if ! ,secret>y det]m9es t ! am\nts 9 ! ,fund are 9 excess ( curr5t ne$s1 ! ,secret>y may inve/ su* am\nts z ! ,secret>y consid]s advisable 9 obligations issu$ or gu>ante$ by ! ,unit$ ,/ates4 7f7 ,prohibition ( ,f$]al funds ,except = am\nts made available pursuant to subsection 7d7 & section #c7;h71 no fur!r ,f$]al funds %all be au?oriz$ or appropriat$ = ! ,fund or = c>ry+ out ! re9surance program "u ?is ,act4 #aa4 ,annual /udy conc]n+ b5efits ( re9surance program 7a7 ,9 g5]al ,! ,secret>y %all1 on an annual basis1 conduct a /udy & submit to ! ,congress a report t-- 7#a7 analyzes ! co/ & availability ( home[n]s' insurance = losses result+ f cata/rophic natural disa/]s cov]$ by ! re9surance program "u ?is ,act2 7#b7 describes ! ef=ts ( ! p>ticipat+ ,/ates 9-- 7,a7 enact+ prep>$ness1 prev5tion1 mitigation1 recov]y1 & rebuild+ /&>ds2 & 7,b7 educat+ ! public on ! risks associat$ ) natural cata/rophe2 & 7#c7 makes recomm5dations reg>d+ ways to improve ! program "u ?is ,act & its adm9i/ration4 7b7 ,cont5ts ,ea* annual /udy "u ?is section %all also det]m9e & id5tify1 on an aggregate basis-- 7#a7 = ea* ,/ate or region1 ! capacity ( ! private home[n]s' insurance m>ket ) respect to cov]age = losses f cata/rophic natural disa/]s2 7#b7 = ea* ,/ate or region1 ! p]c5tage ( home[n]s :o h su* cov]age1 ! cata/rophes cov]$1 & ! av]age co/ ( su* cov]age2 & 7#c7 = ea* ,/ate or region1 ! effects ?is ,act is hav+ on ! availability & af=dability ( su* insurance4 7c7 ,tim+ ,ea* annual report "u ?is section %all be submitt$ n lat] ?an ,m>* #cj ( ! ye> aft] ! ye> = :i* ! /udy 0 conduct$4 7d7 ,comm5cem5t ( report+ requirem5t ,! ,secret>y %all fir/ submit an annual report "u ?is section n lat] ?an two ye>s aft] ! date ( ! enactm5t ( ?is ,act4 #ab4 ,def9itions ,= purposes ( ?is ,act1 ! foll[+ def9itions %all apply3 7#a7 ,commission ,! t]m ,commission means ! ,national ,commission on ,cata/rophe ,risks & ,insurance ,loss ,co/s e/abli%$ "u section #c4 7#b7 ,cov]$ p]ils ,! t]m cov]$ p]ils means ! natural disa/] p]ils "u section #f4 7#c7 ,cov]$ pur*as] ,! t]m cov]$ pur*as] means an eligible ,/ate-op]at$ insurance or re9surance program t pur*ases re9surance cov]age made available "u a contract "u section #g4 7#d7 ,disa/] area ,! t]m disa/] area means a geographical area1 ) respect to :i*-- 7,a7 a cov]$ p]il specifi$ 9 section #f has occurr$2 & 7,b7 a decl>ation t a major disa/] exi/s1 z a result ( ! occurr5ce ( su* p]il-- 7i7 has be5 made by ! ,presid5t ( ! ,unit$ ,/ates2 & 7ii7 is 9 effect4 7#e7 ,eligible losses ,! t]m eligible losses means1 ) respect to a contract = re9surance cov]age made available "u ?is ,act = a cov]$ pur*as]1 ! insur$ losses ( ! cov]$ pur*as] t exce$ ! am\nt ( reta9$ losses t ! contract requires1 pursuant to section #h7;b71 to be incurr$ by ! eligible ,/ate program ( su* pur*as]1 z def9$ by ! ,secret>y aft] consultation ) ! ,commission4 7#f7 ,eligible ,/ate program ,! t]m eligible ,/ate program means a ,/ate program t1 pursuant to section #g7;a71 is eligible to pur*ase re9surance cov]age made available ?r\gh contracts "u section #g1 or a multi-,/ate program t is eligible to pur*ase su* cov]age pursuant to section #g7;c74 7#g7 ,insur$ loss ,! t]m insur$ loss means1 ) respect to contract = re9surance cov]age made available "u ?is ,act = a cov]$ pur*as]1 any loss result+ f a cov]$ p]il t is cov]$ by insurance or re9surance made available "u ! eligible ,/ate program ( ! cov]$ pur*as]4 7#h7 ,price g\g+ ,! t]m price g\g+ means ! provid+ ( any consum] good or s]vice by a suppli] relat$ to repair or re/oration ( prop]ty damag$ f a cata/rophe = a price t ! suppli] kn[s or has reason to "k is great]1 by at lea/ ! p]c5tage set =? 9 a ,/ate law or regulation prohibit+ su* act 7not)/&+ any real co/ increase due to any att5dant bus9ess risk & o!r reasonable exp5ses t result f ! major cata/rophe involv$71 ?an ! price *>g$ by ! suppli] = su* consum] good or s]vice imm$iately be=e ! disa/]4 7#i7 ,qualifi$ l9es ,! t]m qualifi$ l9es means l9es ( insurance cov]age = :i* losses are cov]$ "u section #e by re9surance cov]age "u ?is ,act4 7#aj7 ,re9surance cov]age ,! t]m re9surance cov]age "u ?is ,act means cov]age "u contracts made available "u section #g4 7#aa7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ! ,treasury4 7#ab7 ,/ate ,! t]m ,/ate means ! ,/ates ( ! ,unit$ ,/ates1 ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s1 ,guam1 ! ,virg9 ,isl&s1 ,am]ican ,samoa1 & any o!r t]ritory or possession ( ! ,unit$ ,/ates4 #ac4 ,regulations ,! ,secret>y1 9 consultation ) ! ,secret>y ( ! ,dep>tm5t ( ,homel& ,security1 %all issue any regulations necess>y to c>ry out ! program = re9surance cov]age "u ?is ,act4 #ad4 ,t]m9ation 7a7 ,9 g5]al ,except z provid$ 9 subsection 7b71 ! ,secret>y may n provide any re9surance cov]age "u ?is ,act cov]+ any p]iod aft] ! expiration ( ! #bj-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act4 7b7 ,ext5sion ,if ^u ! expiration ( ! p]iod "u subsection 7a7 ! ,secret>y1 9 consultation ) ! ,commission1 det]m9es t cont9uation ( ! program = re9surance cov]age "u ?is ,act is necess>y or appropriate to c>ry out ! purpose ( ! program "u section #d7;b7 because ( insuffici5t gr[? ( capacity 9 ! private home[n]s' insurance m>ket1 ! ,secret>y %all cont9ue to provide re9surance cov]age "u ?is ,act until ! expiration ( ! #e-ye> p]iod beg9n+ ^u ! expiration ( ! p]iod "u subsection 7a74 7c7 ,repeal ,effective ^u ! date t re9surance cov]age "u ?is ,act is no long] available or 9 =ce pursuant to subsection 7a7 or 7b71 ?is ,act 7except = ?is section7 is repeal$4 7d7 ,deficit r$uction ,! ,secret>y %all cov] into ! ,g5]al ,fund ( ! ,treasury any am\nts rema9+ 9 ! ,fund "u section #i ^u ! repeal ( ?is ,act "u subsection 7c74