,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bcdi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ag1 #bjbe,mr4   
,s*iff 7= himself & ,ms4 ,hirono7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to require ! ,secret>y ( !     
,treasury to e/abli% a cata/rophic      
prop]ty loss re9surance program1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,incorporat+ ,national  
,support = ,unprec$5t$ ,risks &         
,em]g5cies ,act or ! ,,insure ,act4  #b4
 ,def9itions ,9 ?is ,act3 7#a7          
,all-p]ils prop]ty insurance policy ,!  
t]m all-p]ils prop]ty insurance policy  
means a prop]ty insurance policy approv$
 by a ,/ate :i* includes cov]age =      
cata/rophe p]ils z ^? p]ils are add$ to 
! ,program4  7#b7 ,cata/rophe p]il ,!   
t]m cata/rophe p]il means ! damage caus$
 by-- 7,a7 w9d1 hurricane1 wildfire1    
sev]e convective /orm1 & flood z !y are 
add$ to ! ,program "u section #c7;d72   

7,b7 e>?quake1 condition$ on ! report "u
 section #d7b72 &  7,c7 any o!r p]il z  
det]m9$ by ! ,secret>y & add$ to !      
,program4  7#c7 ,engag$ 9 ! bus9ess (   
insurance ,! t]m engag$ 9 ! bus9ess (   
insurance means a p]son or entity t is  
subject to ov]sight by a ,/ate insurance
 dep>tm5t4  7#d7 ,fund ,! t]m ,fund     
means ! ,f$]al ,cata/rophe ,re9surance  
,fund e/abli%$ "u section #c7;i74  7#e7 
,insur] ,! t]m insur]-- 7,a7 means an   
admitt$ or non-admitt$ insurance company
 lic5s$ or au?oriz$ to sell prim>y      
prop]ty insurance by ,/ate insurance    
regulators2 &  7,b7 does n include a    
re9surance company or a captive         
insurance company4  7#f7 ,p>ticipat+    
insur] ,! t]m p>ticipat+ insur] means an
 insur] t is p>ticipat+ 9 ! ,program4   
7#g7 ,program ,! t]m ,program means !   
cata/rophic prop]ty loss re9surance     
program e/abli%$ "u section #c7;a74     
7#h7 ,prop]ty insurance policy ,! t]m   
prop]ty insurance policy means a        
contract ( insurance1 ?r\gh a policy =m 

approv$ by a ,/ate insurance dep>tm5t1 t
 provides1 among o!r cov]ages1 cov]age =
 physical damage to resid5tial or       
comm]cial prop]ty4  7#i7 ,secret>y ,!   
t]m ,secret>y means ! ,secret>y ( !     
,treasury4  7#aj7 ,/ati/ical plan ,! t]m
 /ati/ical plan means-- 7,a7 a          
description ( ! data elem5ts to be      
report$2 &  7,b7 ! in/ructions &        
proc$ures = accurately report+ data4    
#c4 ,cata/rophic prop]ty loss re9surance
 program  7a7 ,9 g5]al ,n lat] ?an #d   
ye>s aft] ! date ( enactm5t ( ?is ,act1 
! ,secret>y %all e/abli% a cata/rophic  
prop]ty loss re9surance program to      
provide re9surance = qualify+ prim>y    
insurance companies4  7b7 ,eligibility  
,an insur] is qualifi$ to p>ticipate 9 !
 ,program if su* insur]-- 7#a7 (f]s an  
all-p]ils prop]ty insurance policy1 z   
p]ils are phas$ 9 "u subsection 7d71 =--
 7,a7 resid5tial prop]ty insurance      
policies2 or  7,b7 comm]cial prop]ty    
insurance policies2 &  7#b7 (f]s a loss 
prev5tion p>tn]%ip ) ! policyhold] to   

enc\rage inve/m5ts & activities t r$uce 
insur$ & economic losses f a cata/rophe 
p]il4  7c7 ,consultation ,! ,secret>y   
may contract ) re9surance brok]s &      
consultants to assi/ ! ,secret>y 9 !    
design & managem5t ( ! ,program4  7d7   
,program phase-,9 timel9e ,! ,secret>y  
%all-- 7#a7 n lat] ?an ,janu>y #a ( !   
ye> beg9n+ #d ye>s aft] ! date (        
enactm5t ( ?is ,act1 op]ate ! ,program =
 ! p]ils ( w9d & hurricane2  7#b7 n lat]
 ?an ,janu>y #a ( ! ye> beg9n+ #e ye>s  
aft] ! date ( enactm5t ( ?is ,act1      
op]ate ! ,program = ! p]ils ( sev]e     
convective /orm & wildfire2  7#c7 n lat]
 ?an ,janu>y #a ( ! ye> beg9n+ #f ye>s  
aft] ! date ( enactm5t ( ?is ,act1      
op]ate ! ,program = ! p]il ( flood2 &   
7#d7 n lat] ?an ! e>li] ( ,janu>y #a ( !
 ye> beg9n+ #h ye>s aft] ! date (       
enactm5t ( ?is ,act or ! date on :i* !  
feasibility report describ$ 9 section   
#d7b7 is submitt$1 op]ate ! ,program = !
 p]il ( e>?quake4  7e7 ,?re%old = paym5t
  7#a7 ,9 g5]al ,! ,secret>y %all1 aft] 

consult+ ) ! advisory committee e/abli%$
 "u subsection 7h71 e/abli% a f9ancial  
?re%old at :i* a p>ticipat+ insur] may  
receive am\nts f ! fund e/abli%$ "u     
subsection 7i74  7#b7 ,?re%old          
calculation ,! ?re%old e/abli%$ "u      
p>agraph 7#a7 %all be an am\nt t is n   
great] ?an #dj p]c5t ( ! probable       
maximum loss ( an individual p>ticipat+ 
insur] = ea* cata/rophe p]il includ$ 9 !
 ,program4  7#c7 ,consid]ations ,9      
e/abli%+ ! ?re%old describ$ 9 p>agraph  
7#a71 ! ,secret>y %all consid]-- 7,a7 ! 
am\nt ( re9surance necess>y to          
mean+fully r$uce ! co/ to ! p>ticipat+  
insur] to-- 7i7 provide cov]age =       
cata/rophe p]ils cov]$ by ! ,program2 & 
7ii7 enc\rage ,/ates to require         
p>ticipat+ insur]s to (f] an all-p]ils  
prop]ty insurance policy2  7,b7 ! levels
 ( prim>y insur] ret5tion & private     
re9surance m>ket capacity necess>y to-- 
7i7 promote /able & competitive m>kets =
 cata/rophe re9surance2 &  7ii7         
inc5tivize ! e/abli%m5t by private      

p>ties ( capital m>ket alt]natives to   
re9surance1 = example ! creation ( a    
m>ket = cata/rophe bonds2 &  7,c7 ! role
 ( ! ,program 9 promot+ inve/m5ts by    
p>ticipat+ insur]s t w\ld be aim$ at    
decreas+ losses4  7f7 ,premiums  7#a7 ,9
 g5]al ,! ,secret>y %all require        
p>ticipat+ insur]s to pay a premium to !
 ,secret>y ea* qu>t]4  7#b7 ,premium    
am\nt consid]ations ,! am\nt ( ! premium
 requir$ "u p>agraph 7#a7 %all reflect  
only ! foll[+ consid]ations3 7,a7 ,!    
expect$ av]age annual losses = !        
p>ticipat+ insur] "u ! specific t]ms ( !
 re9surance cov]age1 z calculat$ by !   
,secret>y bas$ on ! exposure ( !        
p>ticipat+ insur]4  7,b7 ,! adm9i/rative
 co/s to adm9i/] & manage ! ,program4   
7,c7 ,a tr5d factor to acc\nt =         
increases ov] "t 9 ! co/ ( av]age annual
 losses = p>ticipat+ insur]s1 z det]m9$ 
by ! ,secret>y4  7#c7 ,consultation ,!  
,secret>y %all consult ) ! advisory     
committee e/abli%$ "u subsection 7i7 :5 
e/abli%+ premium am\nts & may contract =

 s]vices to assi/ 9 ! e/abli%m5t (      
premium am\nts4  7#d7 ,m9imum premium   
requir$ ,! ,secret>y may n e/abli% any  
premium t is less ?an #ej p]c5t ( !     
am\nt equal to ! sum ( !-- 7,a7 expect$ 
av]age annual losses = ! p>ticipat+     
insur]1 z calculat$ by ! ,secret>y bas$ 
on ! exposure ( ! p>ticipat+ insur]2 &  
7,b7 adm9i/rative co/s to adm9i/] &     
manage ! ,program4  7#e7 ,premium       
adju/m5ts ,! ,secret>y %all adju/       
premiums ea* qu>t] = ea* p>ticipat+     
insur] to reflect mat]ial *anges 9 !    
exposure ( ! p>ticipat+ insur]4  7#f7   
,premium increases ,exclud+ any adju/m5t
 made "u p>agraph 7#e71 ! ,secret>y may 
increase premiums = a p>ticipat+ insur] 
n m ?an #g p]c5t annually4  7g7 ,loss   
prev5tion p>tn]%ips  7#a7 ,9 g5]al ,!   
,secret>y1 9 coord9ation ) ! advisory   
committee e/abli%$ "u subsection 7h71   
,/ate insurance ag5cies1 & ,/ate &      
,f$]al em]g5cy managem5t ag5cies1 %all  
develop a li/ ( activities t qualify z  
loss prev5tion p>tn]%ips = purposes (   

?is section1 :i* may include ! foll[+   
activities3 7,a7 ,p>ticipat+ insur]s    
id5tify+ loss prev5tion /eps t make     
prop]ties eligible = cov]age or r5ewal4 
7,b7 ,p>ticipat+ insur]s mak+ cov]age   
cont+5t ^u ! implem5tation ( a loss     
prev5tion activity by a pot5tial insur$ 
p>ty4  7#b7 ,activities exclud$ f loss  
prev5tion p>tn]%ips ,! ,secret>y1 ,/ate 
insurance ag5cies1 & ,/ate & ,f$]al     
em]g5cy managem5t ag5cies may n include 
! foll[+ activities z loss prev5tion    
p>tn]%ips = purposes ( ?is section3 7,a7
 ,! provision ( an insurance premium    
disc\nt = an inve/m5t by an insur$ p>ty 
or pot5tial insur$ p>ty 9 an activity   
design$ to r$uce ! losses ( ! p>ticipat+
 insur]1 abs5t an inve/m5t by !         
p>ticipat+ insur]4  7,b7 ,! provision ( 
g5]al in=mation ab\t loss prev5tion4    
7h7 ,advisory committee  7#a7 ,9 g5]al  
,! ,secret>y %all e/abli% an advisory   
committee to advise ! ,secret>y )       
respect to ! ,program4  7#b7 ,memb]%ip  
,! committee e/abli%$ "u p>agraph 7#a7  

%all include ! foll[+ memb]s3 7,a7 #e   
memb]s repres5t+ consum] organizations  
engag$ 9 fair h\s+1 insurance1          
environm5tal1 climate1 & te*nology      
advocacy4  7,b7 #c memb]s select$ f     
individual prim>y insurance companies   
sell+ prop]ty insurance policies1       
includ+ "o l>ge national insur]1 #a     
m$ium siz$ regional insur]1 & #a small  
insur]4  7,c7 #a global re9sur] active 9
 ,unit$ ,/ates prop]ty insurance m>kets4
  7,d7 #a dome/ic-focus$ re9sur] active 
9 ,unit$ ,/ates prop]ty insurance       
m>kets4  7,e7 #b insurance regulators f 
a ,/ate ( ! ,unit$ ,/ates1 a t]ritory or
 possession ( ! ,unit$ ,/ates1 or !     
,di/rict ( ,colombia4  7,f7 #b ,/ate    
legislators :o-- 7i7 s]ve on ,/ate      
legislative committees ) ov]sight ov]   
insurance matt]s2 &  7ii7 are n employ$ 
directly or indirectly by any p]son or  
organization engag$ 9 ! bus9ess (       
insurance4  7,g7 #b memb]s select$ f    
indep5d5t insurance ag5ts :o s]ve       
traditionally und]s]v$ areas4  7,h7 #a  

repres5tative f a mortgage l5d]4  7,i7  
#a repres5tative f a bank4  7,j7 #a     
repres5tative f ea* ( ! foll[+ ag5cies3 
7i7 ,! ,dep>tm5t ( ,h\s+ & ,urban       
,developm5t4  7ii7 ,! ,dep>tm5t ( ,heal?
 & ,human ,s]vices4  7iii7 ,! ,f$]al    
,h\s+ ,f9ance ,ag5cy4  7iv7 ,! ,dep>tm5t
 ( ,vet]ans ,affairs4  7v7 ,! ,dep>tm5t 
( ,agriculture4  7vi7 ,! ,f$]al ,em]g5cy
 ,managem5t ,ag5cy4  7vii7 ,! ,(fice (  
,managem5t & ,budget4  7viii7 ,!        
,environm5tal ,protection ,ag5cy4  7,k7 
#a repres5tative f ! ,f9ancial ,/ability
 ,ov]sight ,c\ncil4  7i7 ,f$]al         
,cata/rophe ,re9surance ,fund  7#a7 ,9  
g5]al ,! ,secret>y %all e/abli% ! ,f$]al
 ,cata/rophe ,re9surance ,fund to hold &
 inve/ premiums paid by p>ticipat+      
insur]s4  7#b7 ,issuance ( notes & bonds
  7,a7 ,9 g5]al ,if am\nts 9 ! ,fund are
 insuffici5t to pay obligations to      
p>ticipat+ insur]s1 ! ,secret>y %all    
issue notes & bonds "u ?is p>agraph1 !  
proce$s ( :i* %all be us$ = paym5t      
obligations to p>ticipat+ insur]s4  7,b7

 ,t]ms ,notes & bonds issu$ "u ?is      
p>agraph %all be-- 7i7 9 su* =m &       
d5om9ations1 & %all be subject to su*   
t]ms & conditions ( issue1 conv]sion1   
r$emption1 maturation1 & paym5t z !     
,secret>y may prescribe2 &  7ii7 fully &
 unconditionally gu>ante$ bo? z to      
int]e/ & pr9cipal by ! ,unit$ ,/ates1 & 
t gu>anty %all be express$ on ! face (  
ea* bond4  7,c7 ,int]e/ ,notes & bonds  
issu$ "u ?is p>agraph %all be> int]e/ at
 a rate n less ?an ! curr5t av]age yield
 on out/&+ m>ket obligations ( ! ,unit$ 
,/ates ( comp>able maturity dur+ ! mon? 
prec$+ ! issuance ( ! obligation z      
det]m9$ by ! ,secret>y4  7,d7 ,treatm5t 
,all notes & bonds issu$ "u ?is         
p>agraph1 & ! int]e/ on cr$its ) respect
 to ^? obligations1 %all n be subject to
 taxation by any ,/ate1 c\nty1          
municipality1 or local tax+ au?ority4   
7,e7 ,satisfaction ,! ,secret>y %all    
utilize inve/m5t rev5ue f ! ,fund to    
satisfy any notes or bonds issu$ "u ?is 
p>agraph4  7j7 ,data collection  7#a7 ,9

 g5]al ,! ,secret>y %all-- 7,a7 e/abli% 
a /ati/ical plan = qu>t]ly report+ by   
p>ticipat+ insur]s ( policy-level claim 
transaction data2  7,b7 consult ) !     
advisory committee e/abli%$ "u          
subsection 7h7 & ! ,national            
,association ( ,insurance ,commission]s 
) respect to-- 7i7 ! cont5ts ( !        
/ati/ical plan2 &  7ii7 ! me?od ( data  
collection2  7,c7 collect qu>t]ly       
reports f ea* p>ticipat+ insur] t       
include-- 7i7 a description ( all       
exposures cov]$ by ! ,program at ! "t ( 
! submission ( ! report2 &  7ii7 a li/ (
 ! type & am\nt ( all claims made 9 !   
previ\s qu>t]2  7,d7 9 a mann] t does n 
risk public disclosure ( p]sonally      
id5tifiable in=mation ( policyhold]s1   
provide ! qu>t]ly reports receiv$ "u    
subp>agraph 7,c7 to-- 7i7 ! ,director ( 
! ,(fice ( ,f9ancial ,rese>* to assess  
risk to-- 7,i7 ! f9ancial /ability ( !  
,unit$ ,/ates2 &  7,,ii7 int]national   
f9ancial sy/ems aris+ f ,unit$ ,/ates   
prop]ty insurance m>kets1 includ+ lack (

 available prop]ty insurance or         
inadequate cov]age f prop]ty insurance2 
7ii7 ! ,director ( ! ,f$]al ,insurance  
,(fice to assess ! risks to ! f9ancial  
/ability aris+ f "u-insurance ( prop]ty 
insurance policies cov]+ cata/rophe     
p]ils1 includ+ 9 traditionally und]s]v$ 
insurance m>kets2  7iii7 ! head ( !     
dep>tm5t ( insurance 9 ea* ,/ate2 &     
7iv7 any o!r ,f$]al1 ,/ate1 or local    
gov]nm5t entity t1 z det]m9$ by !       
,secret>y1 is relat$ to-- 7,i7          
cata/rophe loss prev5tion1 mitigation1  
or recov]y2 or  7,,ii7 ! promotion (    
competitive prop]ty insurance m>kets2 & 
7,e7 make ! data collect$ "u ?is        
p>agraph available onl9e 9 a mann] t    
does n risk public disclosure (         
p]sonally id5tifiable in=mation (       
policyhold]s4  7#b7 ,contract+ ) a      
/ati/ical ag5t  7,a7 ,9 g5]al ,!        
,secret>y %all contract ) a /ati/ical   
ag5t via a competitive bidd+ process to 
collect & review ! data "u ?is          
subsection = accuracy & complet5ess4    

7,b7 ,(fice ( ,f9ancial ,rese>* z !     
/ati/ical ag5t ,if ! ,secret>y is unable
 to id5tify a qualifi$ /ati/ical ag5t = 
collection ( data "u ?is subsection1 !  
,director ( ! ,(fice ( ,f9ancial ,rese>*
 %all e/abli% a data collection         
infra/ructure = collection ( su* data4  
#d4 ,reports on relocation fund &       
e>?quake cov]age ,! ,secret>y %all--    
7#a7 n lat] ?an #b ye>s aft] ! date (   
enactm5t ( ?is ,act1 submit to ,congress
 a report on ! feasibility ( e/abli%+ a 
fund to relocate homes & bus9esses t h  
become un9surable due to cata/rophe     
p]ils2 &  7#b7 n lat] ?an #c ye>s aft] !
 date ( enactm5t ( ?is ,act1 submit to  
,congress a report on ! feasibility (   
includ+ e>?quakes z a p]il cov]$ "u !   
all-p]ils prop]ty insurance policy4  #e4
 ,long-t]m policy pilot program  7a7 ,9 
g5]al ,! ,secret>y %all1 9 consultation 
) ,/ates & ! ,national ,association (   
,insurance ,commission]s1 e/abli% a     
pilot program = all-p]ils prop]ty       
insurance policies1 z p]ils are phas$ 9 

"u section #c7;d71 ) a policy t]m ( at  
lea/ #e ye>s 79 ?is section ref]r$ to z 
a multi-ye> policy74  7b7 ,premium &    
policy conditions ,an insur] :o         
p>ticipates 9 ! pilot program e/abli%$  
"u ?is section may-- 7#a7 increase      
premiums bas$ on-- 7,a7 price indexes ( 
con/ruction co/s2  7,b7 *anges 9 home   
value2 &  7,c7 optional cov]ages select$
 by ! policyhold]2  7#b7 n increase     
premiums bas$ on a *ange 9 ! assessm5t  
by ! insur] ( ! cata/rophe p]il risks   
associat$ ) ! insur$ prop]ty2  7#c7     
require prop]ty ma9t5ance consi/5t ) !  
condition ( ! prop]ty at "t ( initial   
policy issuance2 &  7#d7 require loss   
mitigation inve/m5t p>tn]%ips z a       
condition = ! multi-ye> policy4  7c7    
,actions by ! policyhold]  7#a7 ,policy 
cont9uation ,) ! agreem5t ( ! insur]1 a 
consum] pur*as+ ! prop]ty dur+ ! t]m ( !
 multi-ye> policy may cont9ue ! policy =
 ! rema9d] ( ! t]m4  7#b7 ,election to  
new insur] ,if ! policyhold] elects to  
move to a new insur] dur+ ! t]m ( !     

multi-ye> policy1 ! new insur] may take 
into acc\nt loss mitigation inve/m5t    
p>tn]%ips ) ! prior insur]s 9 rate      
sett+4  7#c7 ,cancellation by           
policyhold] ,if ! policyhold] is !      
recipi5t ( any funds = loss prev5tion   
prop]ty improvem5ts f ! insur]1 ,f$]al1 
,/ate1 local gov]nm5t1 or o!r s\rce & ! 
policyhold] cancels ! policy be=e ! end 
( ! multi-ye> policy t]m1 ! policyhold] 
%all return a pro-rata %>e ( su*        
improvem5t to ! s\rce ( ! funds4