,i #aai? ,,congress #a/ ,session ,h4 ,r4 #hbg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,janu>y #bh1 #bjbe,ms4 ,wilson ( ,florida introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to ensure ! availability & af=dability ( home[n]s' insurance cov]age = cata/rophic ev5ts4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,home[n]s' ,def5se ,act ( #bjbe4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,f9d+s & purposes4 ,title ,i--,national ,cata/rophe ,risk ,consortium ,sec4 #aja4 ,e/abli%m5t2 *airp]son2 memb]%ip2 bylaws4 ,sec4 #ajb4 ,functions4 ,sec4 #ajc4 ,au?orization ( appropriations4 ,title ,,ii--,cata/rophe ,obligation ,gu>antees ,sec4 #bja4 ,purposes4 ,sec4 #bjb4 ,e/abli%m5t ( debt gu>antee program4 ,sec4 #bjc4 ,effect ( gu>antee4 ,sec4 #bjd4 ,full fai? & cr$it4 ,sec4 #bje4 ,fees = gu>antees2 am\nt2 collection4 ,sec4 #bjf4 ,paym5t ( losses4 ,sec4 #bjg4 ,regulations4 ,title ,,iii--,re9surance cov]age = eligible ,/ate programs ,sec4 #cja4 ,program au?ority4 ,sec4 #cjb4 ,contract pr9ciples4 ,sec4 #cjc4 ,t]ms ( re9surance contracts4 ,sec4 #cjd4 ,maximum ,f$]al liability4 ,sec4 #cje4 ,f$]al ,natural ,cata/rophe ,re9surance ,fund4 ,sec4 #cjf4 ,consid]ation ( rebuild+4 ,sec4 #cjg4 ,regulations4 ,title ,,iv--,mitigation grant program ,sec4 #dja4 ,mitigation grant program4 ,title ,v--,g5]al provisions ,sec4 #eja4 ,eligible ,/ate programs4 ,sec4 #ejb4 ,/udy & conditional cov]age ( comm]cial resid5tial l9es ( insurance4 ,sec4 #ejc4 ,/udy ( risk-bas$ pric+ & ,/ate program rates4 ,sec4 #ejd4 ,def9itions4 ,sec4 #eje4 ,regulations4 #b4 ,f9d+s & purposes 7a7 ,f9d+s ,! ,congress f9ds t-- 7#a7 ! ,unit$ ,/ates has a hi/ory ( cata/rophic natural disa/]s1 includ+ hurricanes1 tornadoes1 flood1 fire1 e>?quakes1 & volcanic eruptions2 7#b7 al?\gh cata/rophic natural disa/]s occur infrequ5tly1 _! co/s are likely to escalate 9 ! com+ ye>s1 9 "p because ( ! int5sify+ impacts ( climate *ange1 coa/al developm5t patt]ns1 & increas+ prop]ty values along ! hurricane-prone or e>?quake-vuln]able coa/l9es ( ! ,unit$ ,/ates2 7#c7 su* disa/]s pres5t physical risk to assets1 publicly trad$ securities1 private inve/m5ts1 & companies2 7#d7 z ! risk ( cata/rophe losses gr[s1 s d ! risks t any premiums collect$ by private insur]s = ext5d+ cov]age w be insuffici5t to cov] future cata/rophes1 & private insur]s1 to protect _! %>ehold]s & policyhold]s 79 ! case ( mutually own$ companies71 h ?us significantly rais$ premiums & curtail$ insurance cov]age 9 ,/ates expos$ to major cata/rophes2 7#e7 su* effects on ! insurance indu/ry h be5 h>mful to economic activity 9 ,/ates expos$ to major cata/rophes & h plac$ significant burd5s on resid5ts ( su* ,/ates & ! ,f$]al ,gov]nm5t2 & 7#f7 "u ! curr5t disa/] risk managem5t sy/em1 ! ,f$]al ,gov]nm5t &1 h5ce1 taxpay]s pay = rebuild+ ?r\gh gov]nm5t grants & l[-int]e/ loans4 7b7 ,purposes ,! purposes ( ?is ,act are to e/abli% a program to provide ,f$]al support = ,/ate-sponsor$ insurance programs to help home[n]s prep>e = & recov] f ! damages caus$ by natural cata/rophes1 to enc\rage mitigation & prev5tion = su* cata/rophes1 to promote ! use ( private m>ket capital z a means to insure aga9/ su* cata/rophes1 to exp$ite ! paym5t ( claims & bett] assi/ 9 ! f9ancial recov]y f su* cata/rophes4 ,i ,national ,cata/rophe ,risk ,consortium #aja4 ,e/abli%m5t2 *airp]son2 memb]%ip2 bylaws 7a7 ,e/abli%m5t ,!re is e/abli%$ an entity to be kn[n z ! ,national ,cata/rophe ,risk ,consortium 79 ?is title ref]r$ to z ! ,consortium74 7b7 ,*airp]son ,! ,secret>y ( ! ,treasury1 or ! designee ( ! ,secret>y1 %all s]ve z ! *airp]son ( ! ,consortium4 7c7 ,memb]%ip ,any ,/ate %all be eligible to p>ticipate 9 ! ,consortium4 7d7 ,consid]ations ,9 select+ memb]s ( ! ,consortium1 ! ,/ates %all-- 7#a7 select memb]s :o h a backgr\nd & exp]tise relevant to ! functions ( ! ,consortium2 & 7#b7 ensure ! p>ticipation ( "o individual or repres5tative ( an organization t repres5ts consum]s1 m9orities1 & l[- & mod]ate-income h\s+ p]sons by reflect+ ! communities t are be+ affect$ by cata/rophic natural disa/]s4 7e7 ,bylaws ,! ,consortium may prescribe1 am5d1 & repeal su* bylaws z necess>y to c>ry out ! functions ( ! ,consortium4 #ajb4 ,functions ,! ,consortium %all-- 7#a7 "w ) ,/ates to ga!r & ma9ta9 an inv5tory ( cata/rophe risk obligations held by provid]s ( natural cata/rophe insurance2 7#b7 assess issues or gaps 9 ! insurance sector ( ! ,unit$ ,/ates f9ancial sy/em & any relat$ effects on insurance af=dability = policyhold]s2 7#c7 advance consi/5t1 cle>1 intelligible1 comp>able1 & accurate disclosure ( cata/rophic risk2 7#d7 submit annual reports to ! ,congress describ+ ! activities ( ! ,consortium = ! prec$+ ye>1 & ! fir/ su* annual report %all include an assessm5t ( ! co/s to ,/ates & ! regions associat$ ) cata/rophe risk2 7#e7 assess ! pot5tial = major disruptions ( private insurance cov]age 9 ,unit$ ,/ates m>kets p>ticul>ly vuln]able to cata/rophes2 7#f7 make su* o!r recomm5dations on h[ id5tifi$ f9ancial risk c be mitigat$1 includ+ ?r\gh new or revis$ regulatory /&>ds1 z appropriate2 & 7#g7 acc\nt = & id5tify disp>ate impacts ( cata/rophic risks on disadvantag$ communities & communities ( color4 #ajc4 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$ to c>ry out ?is title su* sums z may be necess>y = ea* ( fiscal ye>s #bjbf ?r\gh #bjbi4 ,,ii ,cata/rophe ,obligation ,gu>antees #bja4 ,purposes ,! purposes ( ?is title are to e/abli% a program-- 7#a7 to promote ! availability ( private capital to provide liquidity & capacity to ,/ate cata/rophe insurance programs2 & 7#b7 to exp$ite ! paym5t ( claims "u ,/ate cata/rophe insurance programs & bett] assi/ ! f9ancial recov]y f significant natural cata/rophes by au?oriz+ ! ,secret>y ( ! ,treasury to gu>antee debt = su* purposes4 #bjb4 ,e/abli%m5t ( debt gu>antee program 7a7 ,au?ority ( ,secret>y ,! ,secret>y ( ! ,treasury is au?oriz$ & %all h ! p[]s & au?orities necess>y to gu>antee1 & to ent] into commitm5ts to gu>antee1 hold]s ( debt aga9/ loss ( pr9cipal or int]e/1 or bo?1 on any su* debt issu$ by eligible ,/ate programs = purposes ( ?is title1 provid$ t ! total pr9cipal am\nt ( debt obligations gu>ante$ by ! ,secret>y-- 7#a7 = eligible ,/ate programs t cov] e>?quake p]il %all n exce$ #c1ejj1jjj1jjj2 & 7#b7 = eligible ,/ate programs t cov] all o!r p]ils %all n exce$ #ag1jjj1jjj1jjj4 7b7 ,conditions = gu>antee eligibility ,a debt gu>antee "u ?is section may be made only if ! ,secret>y has issu$ a commitm5t to gu>antee to an eligible ,/ate program4 ,! commitm5t to gu>antee %all be = a p]iod ( #c ye>s & may be ext5d$ by ! ,secret>y = a p]iod ( #a ye> on ea* annual anniv]s>y ( ! issuance ( ! commitm5t to gu>antee4 ,! commitm5t to gu>antee & ea* ext5sion ( su* commitm5t may be issu$ by ! ,secret>y only if ! foll[+ requirem5ts are satisfi$3 7#a7 ,! eligible ,/ate program submits to ! ,secret>y a report sett+ =?1 9 su* =m & includ+ su* in=mation z ! ,secret>y %all require1 h[ ! eligible ,/ate program plans to repay ! debt4 7#b7 ,bas$ ^u ! eligible ,/ate program's report submitt$ pursuant to p>agraph 7#a71 ! ,secret>y det]m9es !re is reasonable assurance t ! eligible ,/ate program c meet its repaym5t obligation "u ! debt4 7#c7 ,! eligible ,/ate program ent]s into an agreem5t ) ! ,secret>y1 z ! ,secret>y %all require1 t ! eligible ,/ate program w n use ,f$]al funds ( any k9d or f any ,f$]al s\rce 7includ+ any disa/] or o!r f9ancial assi/ance1 loan proce$s1 & any o!r assi/ance or subsidy7 to repay ! debt4 7#d7 ,! commitm5t to gu>antee %all specify ! fees = debt gu>antee cov]age4 7#e7 ,! maximum t]m ( ! debt t %all be specifi$ 9 a commitm5t issu$ "u ?is section may n exce$ #cj ye>s4 7#f7 ,! ,secret>y det]m9es t ! eligible ,/ate program does n cov] losses aris+ f floods to prop]ties t are requir$ to be cov]$ by flood insurance1 cov]$ by flood insurance1 or locat$ 9 areas hav+ special flood haz>ds 7z su* t]m is def9$ = purposes ( ! ,national ,flood ,insurance ,act ( #aifh & ! ,flood ,disa/] ,protection ,act ( #aigc74 7c7 ,m&atory assi/ance = eligible ,/ate programs ,! ,secret>y %all ^u ! reque/ ( an eligible ,/ate program & pursuant to a commitm5t to gu>antee issu$ "u subsection 7b71 provide a gu>antee "u subsection 7d7 = su* eligible ,/ate program 9 ! am\nt reque/$ by su* eligible ,/ate program1 subject to ! limitation "u subsection 7d77#b74 7d7 ,cata/rophic debt gu>antee ,a debt gu>antee "u ?is subsection = an eligible ,/ate program %all be subject to ! foll[+ requirem5ts3 7#a7 ,preconditions ,! eligible ,/ate program %[s to ! satisfaction ( ! ,secret>y t insur$ losses 9 ! ,/ate to ! eligible ,/ate program aris+ f ! ev5t or ev5ts cov]$ by ! commitm5t to gu>antee are likely to exce$ ! eligible ,/ate program's available ca% res\rces1 z ( imm$iately be=e ! date ( ! ev5t4 7#b7 ,am\nt ,! aggregate pr9cipal am\nt ( ! debt gu>ante$ foll[+ an ev5t or ev5ts ref]r$ to 9 p>agraph 7#a7 may n exce$ ! am\nt by :i* ! insur$ losses expect$ to be su/a9$ by ! ,/ate program z a result ( su* ev5t or ev5ts exce$ #hj p]c5t ( ! qualify+ assets ( ! eligible ,/ate program z /at$ 9 ! mo/ rec5t qu>t]ly f9ancial /atem5t fil$ ) ! domicili>y regulator ( ! program prior to ! ev5t or ev5ts1 except t1 = eligible ,/ate programs t are n requir$ to file su* qu>t]ly f9ancial /atem5ts1 ! aggregate pr9cipal am\nt ( ! debt gu>ante$ may n exce$ ! am\nt by :i* insur$ losses su/a9$ by ! ,/ate program z a result ( su* ev5t or ev5ts exce$ #hj p]c5t ( ! unre/rict$ net assets z /at$ 9 ! annual f9ancial /atem5t = ! program's fiscal ye> end+ imm$iately prior to ! ev5t or ev5ts4 7#c7 ,use ( funds ,am\nts ( debt gu>ante$ "u ?is section %all be us$ only to pay ! co/s ( issu+ debt & to pay ! insur$ losses & loss adju/m5t exp5ses incurr$ by an eligible ,/ate program4 ,su* am\nts %all n be us$ = any o!r purpose4 7e7 ,fund+ ,!re are au?oriz$ to be appropriat$ su* sums z may be necess>y to c>ry out ?is section4 #bjc4 ,effect ( gu>antee ,! issuance ( any gu>antee by ! ,secret>y "u ?is title %all be conclusive evid5ce t-- 7#a7 ! gu>antee has be5 prop]ly obta9$2 7#b7 ! und]ly+ debt qualifi$ = su* gu>antee2 & 7#c7 ! gu>antee is valid1 legal1 & en=ceable4 #bjd4 ,full fai? & cr$it ,! full fai? & cr$it ( ! ,unit$ ,/ates is pl$g$ to ! paym5t ( all gu>antees issu$ "u ?is title ) respect to pr9cipal & int]e/4 #bje4 ,fees = gu>antees2 am\nt2 collection ,! ,secret>y %all *>ge & collect fees = ea* gu>antee 9 am\nts specifi$ 9 ! commitm5t to gu>antee1 :i* %all be 9 am\nts suffici5t 9 ! judgm5t ( ! ,secret>y at ! "t ( issuance ( ! commitm5t to gu>antee to cov] applicable adm9i/rative co/s & probable losses on ! gu>ante$ obligations cov]$ by ! commitm5t to gu>antee1 b 9 any ev5t n to exce$ "o-half ( #a p]c5t p] annum ( ! out/&+ indebt$ness cov]$ by ea* gu>antee4 #bjf4 ,paym5t ( losses 7a7 ,9 g5]al ,! ,secret>y agrees to pay to ! duly appo9t$ pay+ ag5t or tru/ee 79 ?is section ref]r$ to z ! ,fiscal ,ag5t7 = ! eligible ,/ate program t portion ( ! pr9cipal & int]e/ on any debt gu>ante$ "u ?is title t %all become due = paym5t b %all be unpaid by ! eligible ,/ate program z a result ( su* program hav+ provid$ insuffici5t funds to ! ,fiscal ,ag5t to make su* paym5ts4 ,! ,secret>y %all make su* paym5ts on ! date su* pr9cipal or int]e/ becomes due = paym5t or on ! bus9ess day next foll[+ ! day on :i* ! ,secret>y %all receive notice ( failure on ! "p ( ! eligible ,/ate program to provide suffici5t funds to ! ,fiscal ,ag5t to make su* paym5ts1 :i*ev] is lat]4 ,^u mak+ su* paym5t1 ! ,secret>y %all be subrogat$ to all ! rights ( ! ultimate recipi5t ( ! paym5t4 ,! ,secret>y %all be entitl$ to recov] f ! eligible ,/ate program ! am\nt ( any paym5ts made pursuant to any gu>antee ent]$ into "u ?is title4 7b7 ,role ( ! ,attorney ,g5]al ,! ,attorney ,g5]al %all take su* action z may be appropriate to en=ce any "r accru+ to ! ,unit$ ,/ates z a result ( ! issuance ( any gu>antee "u ?is title4 7c7 ,"r ( ! ,secret>y ,not)/&+ any o!r provision ( law relat+ to ! acquisition1 h&l+1 or disposal ( prop]ty by ! ,unit$ ,/ates1 ! ,secret>y %all h ! "r 9 ! discretion ( ! ,secret>y to complete1 recondition1 recon/ruct1 r5ovate1 repair1 ma9ta91 op]ate1 or sell any prop]ty acquir$ by ! ,secret>y pursuant to ! provisions ( ?is title4 #bjg4 ,regulations ,! ,secret>y %all issue any regulations necess>y to c>ry out ! debt-gu>antee program e/abli%$ "u ?is title4 ,,iii ,re9surance cov]age = eligible ,/ate programs #cja4 ,program au?ority ,! ,secret>y ( ! ,treasury1 %all make available = pur*ase1 only by eligible ,/ate programs1 contracts = re9surance cov]age "u ?is title4 #cjb4 ,contract pr9ciples ,contracts = re9surance cov]age made available "u ?is title-- 7#a7 %all be pric$ on an actu>ially s\nd basis2 7#b7 %all m9imize ! adm9i/rative co/s ( ! ,f$]al ,gov]nm5t2 & 7#c7 %all provide cov]age bas$ solely on insur$ losses cov]$ by ! eligible ,/ate program pur*as+ ! contract4 #cjc4 ,t]ms ( re9surance contracts 7a7 ,m9imum atta*m5t po9t & levels ( cov]age ,! ,secret>y %all e/abli% atta*m5t po9ts at :i* re9surance cov]age "u ?is title is provid$ to eligible ,/ate programs4 ,9 sett+ atta*m5t po9ts & 9 det]m9+ ! levels ( re9surance cov]age provid$1 ! ,secret>y %all take into consid]ation-- 7#a7 ! cov]age available ?r\gh eligible ,/ate programs2 7#b7 ! availability & accessibility ( re9surance 9 ! private m>ket2 & 7#c7 o!r factors z deem$ appropriate by ! ,secret>y4 7b7 ,eighty to n9ety p]c5t cov]age ( insur$ losses 9 excess ( reta9$ losses ,ea* contract = re9surance cov]age "u ?is title %all provide t ! am\nt paid out "u ! contract %all be equal to at lea/ #hj p]c5t1 b n m ?an #ij p]c5t1 ( ! am\nt ( insur$ losses ( ! eligible ,/ate program 9 excess ( ! am\nt ( reta9$ losses t ! contract requires1 pursuant to subsection 7a71 to be incurr$ by su* program4 7c7 ,maturity ,! t]m ( ea* contract = re9surance cov]age "u ?is title %all n exce$ #a ye> or su* o!r t]m z ! ,secret>y may det]m9e4 7d7 ,paym5t condition ,ea* contract = re9surance cov]age "u ?is title %all au?orize claims paym5ts to ! eligible ,/ate program pur*as+ ! cov]age only = insur$ losses provid$ "u ! contract4 7e7 ,multiple ev5ts ,! contract %all cov] any insur$ losses f "o or m ev5ts t may occur dur+ ! t]m ( ! contract & %all provide t if multiple ev5ts occur1 ! reta9$ losses requirem5t "u subsection 7a7 %all apply on a cal5d> ye> basis1 9 ! aggregate & n sep>ately to ea* individual ev5t4 7f7 ,tim+ ( claims ,claims "u a contract = re9surance cov]age "u ?is title %all include only insurance claims t are report$ to ! eligible ,/ate program )9 ! #c-ye> p]iod beg9n+ ^u ! ev5t or ev5ts = :i* paym5t "u ! contract is provid$4 7g7 ,actu>ial pric+ ,! price ( cov]age "u a re9surance contract "u ?is title %all be an am\nt1 e/abli%$ by ! ,secret>y at a level t annually produces expect$ premiums t %all be suffici5t to pay ! reasonably anticipat$ co/ ( all claims 7:i* may n be equal only to av]age annual co/s71 loss adju/m5t exp5ses1 all adm9i/rative co/s ( re9surance cov]age (f]$ "u ?is title1 & any su* outw>ds re9surance1 z describ$ 9 section #cje7;c77#c71 z ! ,secret>y consid]s prud5t tak+ into consid]ation ! dem& = re9surance cov]age "u ?is title4 ,! anticipat$ co/ ( all claims %all be comp>able to am\nts be+ includ$ 9 ! price = simil> lay]s ( cov]age 9 ! private sector1 tak+ into acc\nt ! sav+s associat$ ) non-pr(it & tax-exempt /atus ( ! ,fund e/abli%$ "u section #cje4 7h7 ,in=mation ,ea* contract = re9surance cov]age "u ?is title %all conta9 a condition provid+ t ! ,secret>y may require ! eligible ,/ate program t is cov]$ "u ! contract to submit to ! ,secret>y all in=mation on ! eligible ,/ate program relevant to ! duties ( ! ,secret>y "u ?is title4 7i7 ,o!rs ,contracts = re9surance cov]age "u ?is title %all conta9 su* o!r t]ms z ! ,secret>y consid]s necess>y to c>ry out ?is title & to ensure ! long-t]m f9ancial integrity ( ! program "u ?is title4 #cjd4 ,maximum ,f$]al liability 7a7 ,9 g5]al ,subject to subsection 7b7 & not)/&+ any o!r provision ( law1 ! aggregate pot5tial liability = paym5t ( claims "u all contracts = re9surance cov]age "u ?is title sold 9 any s+le ye> %all be det]m9$ by ! ,secret>y bas$ on review ( ! m>ket = re9surance cov]age "u ?is title4 7b7 ,limitation ,! au?ority ( ! ,secret>y to ent] into contracts = re9surance cov]age "u ?is title %all be effective = any fiscal ye> only to su* ext5t or 9 su* am\nts z are or h be5 provid$ 9 appropriation ,acts = su* fiscal ye> = ! aggregate pot5tial liability = paym5t ( claims "u all contracts = re9surance cov]age "u ?is title4 #cje4 ,f$]al ,natural ,cata/rophe ,re9surance ,fund 7a7 ,e/abli%m5t ,!re is e/abli%$ )9 ! ,treasury ( ! ,unit$ ,/ates a fund to be kn[n z ! ,f$]al ,natural ,cata/rophe ,re9surance ,fund 79 ?is section ref]r$ 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 title2 7#b7 any am\nts appropriat$ = ! aggregate pot5tial liability = paym5t ( claims "u all contracts = re9surance cov]age "u ?is title2 & 7#c7 any am\nts e>n$ on inve/m5ts ( ! ,fund pursuant to subsection 7d74 7c7 ,uses ,am\nts 9 ! ,fund %all be available to ! ,secret>y only = ! foll[+ purposes3 7#a7 ,contract paym5ts ,= paym5ts to pur*as]s cov]$ "u contracts = re9surance cov]age = eligible losses "u su* contracts4 7#b7 ,adm9i/rative exp5ses ,to pay = ! adm9i/rative exp5ses incurr$ by ! ,secret>y 9 c>ry+ out ! re9surance program "u ?is title4 7#c7 ,outw>ds re9surance ,to obta9 retrocessional or o!r re9surance cov]age ( any k9d to cov] risk re9sur$ "u contracts = re9surance cov]age made available "u ?is title4 7d7 ,inve/m5t ,! ,secret>y %all inve/ su* am\nts 9 ! ,fund z ! ,secret>y consid]s advisable 9 obligations issu$ or gu>ante$ by ! ,unit$ ,/ates4 ,= purposes ( ! grant m&ate 9 section #dja7;f7 = a fiscal ye>1 ! ,secret>y %all disclose ! annual net inve/m5t income available n lat] ?an #fj days aft] ! conclusion ( su* fiscal ye> & disp]se appropriate funds n lat] ?an #ij days aft] ! conclusion ( su* fiscal ye>4 #cjf4 ,consid]ation ( rebuild+ ,no?+ 9 ?is title may be con/ru$ to prev5t c\nties1 municipalities1 & o!r localities f und]tak+ l& & environm5tal assessm5ts to det]m9e ! efficacy ( rebuild+4 #cjg4 ,regulations ,! ,secret>y %all issue any regulations necess>y to c>ry out ! program = re9surance cov]age "u ?is title4 ,,iv ,mitigation grant program #dja4 ,mitigation grant program 7a7 ,e/abli%m5t ,! ,secret>y ( ,h\s+ & ,urban ,developm5t %all e/abli% & c>ry out a program to provide grants to eligible entities to develop1 enhance1 or ma9ta9 programs to prev5t & mitigate losses f natural cata/rophes4 7b7 ,grants ,a grant provid$ "u subsection 7a7 %all be us$ to r$uce loss ( life & prop]ty by-- 7#a7 enc\rag+ aw>5ess ( risk factors & :at /eps c be tak5 to elim9ate or r$uce !m1 includ+ public education campaigns to promote citiz5 & community prep>$ness2 7#b7 assi/+ 9 ! det]m9ation ( ! location ( risk by giv+ c>eful consid]ation to ! natural risks = ! location ( a prop]ty2 7#c7 provid+ inspections ( homes to id5tify areas to /r5g!n su* homes & r$uce exposure to natural cata/rophes2 7#d7 provid+ f9ancial assi/ance to home[n]s to retr(it homes to r$uce exposure to natural cata/rophes2 or 7#e7 support+ disa/] response read9ess programs1 includ+ initiatives t develop1 enhance 1or ma9ta9 ! capacity ( a public safety organization to be bett] prep>$1 equipp$1 & tra9$ to respond to natural cata/rophes4 7c7 ,priority ,9 mak+ grants "u ! program "u subsection 7a71 ! ,secret>y %all give priority to applicants demon/rat+ great] f9ancial ne$1 includ+ applicants s]v+ l[] income individuals & areas4 7d7 ,consultation ) exp]ts ,9 c>ry+ out ! program e/abli%$ "u subsection 7a71 ! ,secret>y ( ,h\s+ & ,urban ,developm5t %all consult )-- 7#a7 disa/] prep>$ness & response organizations2 7#b7 homebuild]s2 7#c7 real e/ate pr(essionals2 7#d7 build+ code en=cem5t ag5cies2 & 7#e7 any o!r p]son t ! ,secret>y consid]s appropriate4 7e7 ,eligible entity def9$ ,9 ?is section1 ! t]m eligible entity means a ,/ate or local gov]nm5t1 a "p or program ( a ,/ate or local gov]nm5t1 or a nationally recogniz$1 congressionally *>t]$ disa/] response non-pr(it organization4 7f7 ,grant m&ate ,! ,secret>y %all1 to ! ext5t provid$ 9 advance 9 appropriation ,acts1 use n less ?an #ce p]c5t ( ! net inve/m5t income f ! ,f$]al ,natural ,cata/rophe ,re9surance ,fund e>n$ 9 ea* fiscal ye> pursuant to section #cje7;d7 = grants "u ?is section4 ,v ,g5]al provisions #eja4 ,eligible ,/ate programs 7a7 ,eligible ,/ate programs ,a ,/ate program %all be consid]$ an eligible ,/ate program = purposes ( ?is ,act if ! ,secret>y c]tifies1 9 accordance ) ! proc$ures e/abli%$ "u subsection 7c71 t ! ,/ate program complies ) ! foll[+ requirem5ts3 7#a7 ,/ate program design ,! ,/ate program is e/abli%$ & au?oriz$ by ,/ate law z an insurance program or a re9surance program t is design$ to improve private insurance m>kets & t (f]s resid5tial prop]ty insurance cov]age = losses aris+ f any p]sonal resid5tial l9e ( insurance1 z def9$ 9 ! ,uni=m ,prop]ty & ,casualty ,product ,cod+ ,matrix ( ! ,national ,association ( ,insurance ,commission]s4 7#b7 ,op]ation ,! ,/ate program %all meet ! foll[+ requirem5ts3 7,a7 ,a majority ( ! memb]s ( ! gov]n+ body ( ! ,/ate program %all be public (ficials or appo9t$ by public (ficials4 7,b7 ,! ,/ate %all h a f9ancial int]e/ 9 ! ,/ate program4 7,c7 ,if ! ,/ate has at any "t appropriat$ am\nts f ! ,/ate program's funds = any purpose o!r ?an paym5ts = losses insur$ "u ! ,/ate program1 or paym5ts made 9 connection ) any ( ! ,/ate program's au?oriz$ activities1 ! ,/ate %all h return$ su* am\nts to ! ,/ate fund1 toge!r ) int]e/ z det]m9$ by ! individual ,/ate on su* am\nts4 7#c7 ,tax /atus ,! ,/ate program %all h receiv$ f ! ,secret>y 7or ! ,secret>y's designee7 a writt5 det]m9ation1 )9 ! mean+ ( section #faaj7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 t ! program ei!r-- 7,a7 con/itutes an integral "p ( ! ,/ate t has creat$ x2 or 7,b7 is o!rwise exempt f ,f$]al income taxation4 7#d7 ,e>n+s ,! ,/ate program may n provide = any di/ribution ( any "p ( any net pr(its ( ! ,/ate program to any insur] t p>ticipates 9 ! ,/ate program4 7#e7 ,prev5tion & mitigation 7,a7 ,mitigation ( losses ,! ,/ate program %all include provisions design$ to enc\rage & support programs to mitigate losses f natural cata/rophes = :i* ! ,/ate insurance or re9surance program 0 e/abli%$ to provide insurance cov]age4 7,b7 ,op]ational requirem5ts ,! ,/ate program %all op]ate 9 a ,/ate t-- 7i7 requires t an appropriate public body )9 ! ,/ate %all h adopt$ adequate mitigation measures ) effective en=cem5t provisions :i* ! ,secret>y f9ds are consi/5t ) ! crit]ia = con/ruction describ$ 9 ! ,int]national ,code ,c\ncil build+ codes2 7ii7 has tak5 actions to e/abli% an insurance rate /ructure t takes into acc\nt measures to mitigate insur$ losses2 & 7iii7 ensures1 to ! ext5t t re9surance cov]age made available "u ! eligible ,/ate program results 9 any co/ sav+s 9 provid+ insurance cov]age = risks 9 su* ,/ate1 su* co/ sav+s are reflect$ 9 premium rates *>g$ to consum]s = su* cov]age4 7#f7 ,requirem5ts reg>d+ cov]age ,! ,/ate program-- 7,a7 may n1 except = *>ges or assessm5ts relat$ to po/-ev5t f9anc+ or bond+1 involve cross-subsidization betwe5 any sep>ate prop]ty & casualty insurance l9es cov]$ "u ! ,/ate program pursuant to p>agraph 7#a72 7,b7 %all be subject to a requirem5t "u ,/ate law t = any insurance cov]age made available "u ! ,/ate insurance program or = any re9surance cov]age = su* insurance cov]age made available "u ! ,/ate re9surance program1 ! premium rates *>g$ %all cov] ! expect$ value ( all future co/s associat$ ) insurance policies or re9surance contracts writt5 by su* program1 9 accordance ) ! pr9ciples "u section #cjc7;g72 7,c7 %all make available to all qualify+ policyhold]s insurance or re9surance cov]age1 z applicable1 & mitigation s]vices on a basis t is n unfairly discrim9atory2 & 7,d7 publi%es1 & displays 9 a prom95t location on a website = ! ,/ate insurance program1 in=mation = ! ,/ate insurance program ( e/imat$ assessm5ts & sur*>ges on policyhold]s1 9 accordance ) ,/ate laws1 regulations1 or o!r requirem5ts1 = a range ( natural disa/] or cata/rophic ev5ts hav+ a v>y+ magnitude ( losses1 includ+ an ev5t project$ to result 9 losses ( su* magnitude t !y h a #a p]c5t *ance ( be+ equal$ or exce$$ 9 any s+le ye>1 bas$ on ! curr5t ye> e/imat$ aggregate fund+ capacity ( ! ,/ate insurance program & ,/ate re9surance program4 7#g7 ,l& use & zon+ ,! ,/ate program1 to ! ext5t possible1 seeks to enc\rage appropriate ,/ate & local gov]nm5t units to develop compreh5sive l& use & zon+ plans t include natural haz>d mitigation4 7#h7 ,risk-bas$ capital requirem5ts ,! ,/ate program-- 7,a7 complies ) su* risk-bas$ capital requirem5ts z applicable ,/ate law may impose & %all take into consid]ation asset risk1 cr$it risk1 und]writ+ risk1 & su* o!r relevant risk z det]m9$ by ! ,secret>y2 & 7,b7 = ea* cal5d> ye>1 prep>es & submits to ! ,secret>y a report id5tify+ its claim-pay+ capacity at su* "t aft] ! conclusion ( su* ye>1 & conta9+ su* in=mation & 9 su* =m1 z ! ,secret>y %all require4 7#i7 ,o!r requirem5ts ,! ,/ate program complies ) su* additional organizational1 und]writ+1 & f9ancial requirem5ts z ! ,secret>y %all1 by regulation1 provide to c>ry out ! purposes ( ?is ,act4 7b7 ,c]tification ,! ,secret>y %all e/abli% proc$ures = initial c]tification & rec]tification z an eligible ,/ate program4 7c7 ,transitional ,me*anisms ,= ! #e-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 9 ! case ( a ,/ate t does n h an eligible ,/ate program = ! ,/ate1 a ,/ate residual insurance m>ket entity1 or ,/ate-sponsor$ provid] ( natural cata/rophe insurance1 = su* ,/ate %all be consid]$ to be an eligible ,/ate program1 b only if su* ,/ate residual insurance m>ket entity1 or ,/ate-sponsor$ provid] ( natural cata/rophe insurance1 0 9 exi/5ce be=e su* date ( enactm5t4 7d7 ,re9surance ,to cov] exposure ,?is section may n be con/ru$ to limit or prev5t any eligible ,/ate program f obta9+ re9surance cov]age = insur$ losses reta9$ by insur]s pursuant to ?is section4 #ejb4 ,/udy & conditional cov]age ( comm]cial resid5tial l9es ( insurance ,! ,secret>y %all /udy1 on an exp$it$ basis1 ! ne$ = & impact ( exp&+ ! programs e/abli%$ by ?is ,act to apply to insur$ losses ( eligible ,/ate programs = losses aris+ f all comm]cial insurance policies :i* provide cov]age = prop]ties t are compos$ pr$om9antly ( resid5tial r5tal units4 ,! ,secret>y %all consid] ! cata/rophic insurance & re9surance m>ket = comm]cial resid5tial prop]ties1 & specifically ! availability ( adequate private insurance cov]age :5 an insur$ ev5t occurs1 ! impact any su* capacity re/rictions h on h\s+ af=dability = r5t]s1 & ! likelihood t su* an expansion ( ! program w\ld increase insurance capacity = ?is m>ket segm5t4 #ejc4 ,/udy ( risk-bas$ pric+ & ,/ate program rates ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy to analyze-- 7#a7 risk-bas$ rate pric+1 to det]m9e ! use ( actu>ially s\nd pric+ = ,/ate insurance1 re9surance1 or residual m>ket programs1 includ+ :at measures ,/ates are tak+ to implem5t actu>ially s\nd rates2 7#b7 rates = ,/ate insurance1 re9surance1 or residual m>ket programs t fail to cov] ! expect$ value ( all future co/s1 includ+ ! co/ ( capital1 associat$ ) insurance policies or re9surance contracts writt5 by su* programs or fail to h suffici5t assets above _! indebt$ness to meet _! obligations2 & 7#c7 any f9ancial complications aris+ = policyhold]s result+ f increas$ policy co/s4 ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al %all submit a report to ! ,congress on ! results ( ! /udy "u ?is section4 #ejd4 ,def9itions ,9 ?is ,act3 7#a7 ,commitm5t to gu>antee ,! t]m commitm5t to gu>antee means a commitm5t to make debt gu>antees to an eligible ,/ate program pursuant to section #bjb7;c74 7#b7 ,eligible ,/ate program ,! t]m eligible ,/ate program means a ,/ate program t ! ,secret>y c]tifies z an eligible ,/ate program "u section #eja4 7#c7 ,insur$ loss ,! t]m insur$ loss means any loss t is det]m9$ by an eligible ,/ate program z be+ cov]$ by insurance or re9surance made available "u t eligible ,/ate program4 7#d7 ,qualify+ assets ,! t]m qualify+ assets means ! policyhold] surplus ( ! eligible ,/ate program z /at$ 9 ! mo/ rec5t qu>t]ly f9ancial /atem5t fil$ by ! program ) ! domicili>y regulator ( ! program 9 ! la/ qu>t] end+ prior to ! ev5t or ev5ts4 7#e7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ! ,treasury4 7#f7 ,/ate ,! t]m ,/ate includes ! sev]al ,/ates1 ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 ,guam1 ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s1 ! ,unit$ ,/ates ,virg9 ,isl&s1 & ,am]ican ,samoa1 & any o!r t]ritory or possession ( ! ,unit$ ,/ates4 #eje4 ,regulations ,! ,secret>y %all issue su* regulations z may be necess>y to c>ry out ?is ,act4