H.R. 3355 — Homeowners' Defense Act of 2007

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3355 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3355

 To ensure the availability and affordability of homeowners' insurance 
                   coverage for catastrophic events.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 2007

     Mr. Klein of Florida (for himself and Mr. Mahoney of Florida) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To ensure the availability and affordability of homeowners' insurance 
                   coverage for catastrophic events.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Homeowners' 
Defense Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
             TITLE I--NATIONAL CATASTROPHE RISK CONSORTIUM

Sec. 101. Establishment; status; principal office.
Sec. 102. Functions.
Sec. 103. Powers.
Sec. 104. Nonprofit entity; restriction on use of moneys; conflicts of 
                            interest; audits.
Sec. 105. Federal assistance.
Sec. 106. Management.
Sec. 107. Staff; experts and consultants.
Sec. 108. State matching funds.
Sec. 109. Federal liability.
Sec. 110. Authorization of appropriations.
     TITLE II--NATIONAL HOMEOWNERS' INSURANCE STABILIZATION PROGRAM

Sec. 201. Establishment.
Sec. 202. Liquidity loans and catastrophic loans for State and regional 
                            reinsurance programs.
Sec. 203. Reports.
Sec. 204. Funding.
                     TITLE III--GENERAL PROVISIONS

Sec. 301. Qualified reinsurance programs.
Sec. 302. Definitions.
Sec. 303. Regulations.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) the United States has a history of catastrophic natural 
        disasters, including hurricanes, tornadoes, flood, fire, 
        earthquakes, and volcanic eruptions;
            (2) although catastrophic natural disasters occur 
        infrequently, they will continue to occur and are predictable;
            (3) such disasters generate large economic losses and a 
        major component of those losses comes from damage and 
        destruction to homes;
            (4) for the majority of Americans, their investment in 
        their home represents their single biggest asset and the 
        protection of that investment is paramount to economic and 
        social stability;
            (5) historically, when a natural disaster eclipses the 
        ability of the private industry and a State to manage the loss, 
        the Federal Government has stepped in to provide the funding 
        and services needed for recovery;
            (6) the cost of such Federal ``bail-outs'' are borne by all 
        taxpayers equally, as there is no provision to repay the money 
        and resources provided, which thereby unfairly burdens citizens 
        who live in lower risk communities;
            (7) as the risk of catastrophic losses grows, so do the 
        risks that any premiums collected by private insurers for 
        extending coverage will be insufficient to cover future 
        catastrophes (known as timing risk), and private insurers, in 
        an effort to protect their shareholders and policyholders (in 
        the case of mutually-owned companies), have thus significantly 
        raised premiums and curtailed insurance coverage in States 
        exposed to major catastrophes;
            (8) such effects on the insurance industry have been 
        harmful to economic activity in States exposed to major 
        catastrophes and have placed significant burdens on existing 
        residents of such States;
            (9) Hurricanes Katrina, Rita, and Wilma struck the United 
        States in 2005, causing over $200,000,000,000 in total economic 
        losses, and insured losses to homeowners in excess of 
        $50,000,000,000;
            (10) since 2004, the Congress has appropriated more than 
        $58,000,000,000 in disaster relief to the States affected by 
        natural catastrophes;
            (11) the Federal Government has provided and will continue 
        to provide resources to pay for losses from future 
        catastrophes;
            (12) when Federal assistance is provided to the States, 
        accountability for Federal funds disbursed is paramount;
            (13) the Government Accountability Office or other 
        appropriate agencies must have the means in place to confirm 
        that Federal funds for catastrophe relief have reached the 
        appropriate victims and have contributed to the recovery effort 
        as efficiently as possible so that taxpayer funds are not 
        wasted and citizens are enabled to rebuild and resume 
        productive activities as quickly as possible;
            (14) States that are recipients of Federal funds must be 
        responsible to account for and provide an efficient means for 
        distribution of funds to homeowners to enable the rapid 
        rebuilding of local economies after a catastrophic event 
        without unduly burdening taxpayers who live in areas seldom 
        affected by natural disasters;
            (15) State insurance and reinsurance programs can provide a 
        mechanism for States to exercise that responsibility if they 
        appropriately underwrite and price risk, and if they pay claims 
        quickly and within established contractual terms; and
            (16) State insurers and reinsurers, if appropriately 
        backstopped themselves, can absorb catastrophic risk borne by 
        private insurers without bearing timing risk, and thus enable 
        all insurers (whether State-operated or privately owned) to 
        underwrite and price insurance without timing risk and in such 
        a way to encourage property owners to pay for the appropriate 
        insurance to protect themselves and to take steps to mitigate 
        against the risks of disaster by locally appropriate methods.
    (b) Purposes.--The purposes of this Act are to establish a program 
to provide a Federal backstop for State-sponsored insurance programs to 
help homeowners prepare for and recover from the damages caused by 
natural catastrophes, to encourage mitigation and prevention for such 
catastrophes, to promote the use of private market capital as a means 
to insure against such catastrophes, to expedite the payment of claims 
and better assist in the financial recovery from such catastrophes.

             TITLE I--NATIONAL CATASTROPHE RISK CONSORTIUM

SEC. 101. ESTABLISHMENT; STATUS; PRINCIPAL OFFICE.

    (a) Establishment.--There is established a body corporate to be 
known as the ``National Catastrophe Risk Consortium'' (in this title 
referred to as the ``Consortium'').
    (b) Status.--The Consortium is not a department, agency, or 
instrumentality of the United States Government.
    (c) Principal Office.--The principal office and place of business 
of the Consortium shall be in the District of Columbia.

SEC. 102. FUNCTIONS.

    The Consortium shall--
            (1) work with all States participating in the Consortium to 
        gather and maintain an inventory of catastrophe risk 
        obligations held by participating States' reinsurance funds, 
        risk pools, or primary insurance corporations;
            (2) issue securities and other financial instruments linked 
        to the catastrophe risk in the capital markets;
            (3) enter into reinsurance contracts with private parties, 
        on a conduit basis;
            (4) act as a centralized repository of State risk 
        information that can be accessed by private-market participants 
        interested in underwriting risk-linked securities or entering 
        into reinsurance contracts;
            (5) use an acquired catastrophe risk database to perform 
        research and analysis that encourages standardization of the 
        risk-linked securities market;
            (6) perform any other functions that are deemed necessary 
        to aid in the economic transfer of catastrophe risk from 
        participating States to private parties; and
            (7) not later than February 15 of each year, submit to 
        Congress a report describing the activities of the Consortium 
        for the preceding year.

SEC. 103. POWERS.

    The Consortium--
            (1) may sue and be sued, complain and defend, in its 
        corporate name, in any court of competent jurisdiction;
            (2) may adopt, alter, and use a seal, which shall be 
        judicially noticed;
            (3) may prescribe, amend, and repeal such rules and 
        regulations as may be necessary for carrying out the functions 
        of the Consortium;
            (4) may make and perform such contracts and other 
        agreements with any individual or other private or public 
        entity however designated and wherever situated, as may be 
        necessary for carrying out the functions of the Consortium;
            (5) may determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed and 
        paid;
            (6) may, as necessary for carrying out the functions of the 
        Consortium, employ and fix the compensation of employees and 
        officers;
            (7) may lease, purchase, or otherwise acquire, own, hold, 
        improve, use, or otherwise deal in and with such property 
        (real, personal, or mixed) or any interest therein, wherever 
        situated, as may be necessary for carrying out the functions of 
        the Consortium;
            (8) may accept gifts or donations of services or of 
        property (real, personal, or mixed), tangible or intangible, in 
        furtherance of the purposes of this Act; and
            (9) shall have such other powers as may be necessary and 
        incident to carrying out this Act.

SEC. 104. NONPROFIT ENTITY; RESTRICTION ON USE OF MONEYS; CONFLICTS OF 
              INTEREST; AUDITS.

    (a) Nonprofit Entity.--The Consortium shall be a nonprofit 
Consortium and shall have no capital stock.
    (b) Restriction.--No part of the Consortium's revenue, earnings, or 
other income or property shall inure to the benefit of any of its 
directors, officers, or employees, and such revenue, earnings, or other 
income or property shall only be used for carrying out the purposes and 
functions of this Act.
    (c) Conflicts of Interest.--No director, officer, or employee of 
the Consortium shall in any manner, directly or indirectly, participate 
in the deliberation upon or the determination of any question affecting 
his or her personal interests or the interests of any Consortium, 
partnership, or organization in which he or she is directly or 
indirectly interested.
    (d) Audits.--
            (1) Audits by independent certified public accountants.--
                    (A) In general.--The Consortium's financial 
                statements shall be audited annually in accordance with 
                generally accepted auditing standards by independent 
                certified public accountants that are certified by a 
                regulatory authority of a State or other political 
                subdivision of the United States. The audits shall be 
                conducted at the place or places where the accounts of 
                the Consortium are normally kept. All books, accounts, 
                financial records, reports, files, and all other 
                papers, things, or property belonging to or in use by 
                the Consortium and necessary to facilitate the audit 
                shall be made available to the person or persons 
                conducting the audits, and full facilities for 
                verifying transactions with the balances or securities 
                held by depositories, fiscal agents, and custodians 
                shall be afforded to such person or persons.
                    (B) Reporting requirements.--The report of each 
                annual audit described in subparagraph (A) shall be 
                included in the annual report submitted in accordance 
                with section 102(7).
            (2) Audit and examination of books.--The Consortium shall 
        ensure that the Consortium, or any duly authorized 
        representative of the Consortium, has access for the purpose of 
        audit and examination to any books, documents, papers, and 
        records of any recipient of assistance from the Consortium that 
        are pertinent to such assistance.

SEC. 105. FEDERAL ASSISTANCE.

    (a) In General.--In order to carry out the functions described in 
section 102, the Consortium shall be eligible to receive discretionary 
grants, contracts, gifts, contributions, or technical assistance from 
any Federal department or agency, to the extent permitted by law.
    (b) Agreement.--In order to receive any assistance described in 
this section, the Consortium shall enter into an agreement with the 
Federal department or agency providing such assistance, under which the 
Consortium agrees to use such assistance to provide funding and 
technical assistance only for activities which the Board of Directors 
of the Consortium determines are consistent with the functions 
described in section 102.

SEC. 106. MANAGEMENT.

    (a) Board of Directors; Membership; Designation of Chair.--
            (1) Board of directors.--The management of the Consortium 
        shall be vested in a board of directors (referred to in this 
        title as the ``Board'') composed of not less than 3 members.
            (2) Chair.--The Secretary of Treasury, or his designee, 
        shall serve as the Chair of the Board.
            (3) Membership.--The members of the Board shall include--
                    (A) the Secretaries of Homeland Security and 
                Commerce, or their designees; and
                    (B) a member from each State participating in the 
                Consortium, who shall be appointed by such State.
    (b) Compensation, Actual, Necessary, and Transportation Expenses.--
            (1) Nongovernment employees.--Each member of the Board who 
        is not otherwise employed by the Federal Government shall be 
        entitled to receive the daily equivalent of the annual rate of 
        basic pay payable for level IV of the Executive Schedule under 
        section 5315 of title 5, United States Code, as in effect from 
        time to time, for each day (including travel time) during which 
        such member is engaged in the actual performance of duties of 
        the Consortium.
            (2) Government employees.--A member of the Consortium who 
        is an officer or employee of the Federal Government shall serve 
        without additional pay (or benefits in the nature of 
        compensation) for service as a member of the Consortium.
            (3) Travel expenses.--Members of the Consortium shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with subchapter I of chapter 57 of 
        title 5, United States Code.
    (c) Quorum.--A majority of the Board shall constitute a quorum.
    (d) Executive Direction.--The Board shall appoint an executive 
director of the Consortium on such terms as the Board may determine.

SEC. 107. STAFF; EXPERTS AND CONSULTANTS.

    (a) Staff.--
            (1) Appointment.--The Chair of the Consortium may appoint 
        and terminate such other staff as are necessary to enable the 
        Consortium to perform its duties.
            (2) Compensation.--The Chair of the Consortium may fix the 
        compensation of the executive director and other staff.
    (b) Experts and Consultants.--The Board shall procure the services 
of experts and consultants as the Board considers appropriate.

SEC. 108. STATE MATCHING FUNDS.

    (a) State Participation in the Consortium.--States participating in 
the Consortium shall provide an aggregate amount of $10,000,000 toward 
the Consortium's operations per year.
    (b) Individual State Share.--The Board shall establish the 
contribution of individual participating States at a level that 
represents the comparable amount of risk that they are seeking to cede 
to the capital markets or by means of reinsurance contracts.

SEC. 109. FEDERAL LIABILITY.

    The Federal Government shall bear no liabilities arising from the 
actions of the Consortium.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this section 
$10,000,000 for each of fiscal years 2008 through 2012.

     TITLE II--NATIONAL HOMEOWNERS' INSURANCE STABILIZATION PROGRAM

SEC. 201. ESTABLISHMENT.

    The Secretary of the Treasury shall carry out a program under this 
title to make liquidity loans and catastrophic loans under section 202 
to State and regional reinsurance programs to ensure the solvency of 
such programs, to improve the availability and affordability of 
homeowners' insurance, and to spread the risk of catastrophic financial 
loss resulting from natural disasters and catastrophic events.

SEC. 202. LIQUIDITY LOANS AND CATASTROPHIC LOANS FOR STATE AND REGIONAL 
              REINSURANCE PROGRAMS.

    (a) Contracts.--The Secretary may enter into a contract with a 
qualified reinsurance plan to carry out the purposes of this Act as the 
Secretary may deem appropriate. The contract shall include, at a 
minimum, the conditions for loan eligibility set forth in this section.
    (b) Conditions for Loan Eligibility.--A loan under this section may 
be made only to a State or regional reinsurance program and only if--
            (1) the program cannot access capital at a cost lower than 
        that provided in the private market, including, catastrophe 
        bonds and other securities sold through the facility created in 
        title I of this Act, as determined by the Secretary, and a loan 
        may be made to such a reinsurance program only to the extent 
        that such program cannot access capital at such lower cost;
            (2) if the occurrence of a covered event has resulted in 
        insured losses in the geographic area covered by the program in 
        excess of 150 percent of the aggregate amount of direct written 
        premium for homeowners' insurance, for risks located in such 
        geographic area, over the calendar year preceding such event; 
        and
            (3)(A) the State or regional reinsurance program is a 
        qualified reinsurance program; or
            (B) the loan complies with the requirements under 
        subsection (g).
    (c) Mandatory Assistance for Qualified Reinsurance Programs.--The 
Secretary shall--
            (1) upon the request of a qualified reinsurance program and 
        subject to paragraphs (1) and (2) of subsection (b), make a 
        loan under subsection (d) or (e) for such program in the amount 
        requested by such program (subject to the limitations under 
        subsections (d)(2) and (e)(2), respectively); and
            (2) upon the request of a Plan described in subsection 
        (g)(1) and subject to paragraphs (1) and (2) of subsection (b), 
        make a loan under subsection (g) for such Plan in the amount 
        requested by such Plan (subject to the limitations under 
        subsection (e)(2)).
    (d) Liquidity Loans.--A loan under this subsection for a State or 
regional reinsurance program shall be subject to the following 
requirements:
            (1) Preconditions.--The Secretary shall have determined 
        that the reinsurance program--
                    (A) has a capital liquidity shortage, in accordance 
                with regulations that the Secretary shall establish; 
                and
                    (B) cannot access capital markets at effective 
                rates of interest lower than those provided in 
                paragraph (3).
            (2) Amount.--The principal amount of the loan may not 
        exceed the ceiling coverage level for the reinsurance program.
            (3) Rate of interest.--Except as provided in subsection 
        (f), the loan shall bear interest at an annual rate 3 
        percentage points higher than marketable obligations of the 
        Treasury having the same term to maturity as the loan and 
        issued during the most recently completed month, as determined 
        by the Secretary, or such higher rate as may be necessary to 
        ensure that the amounts of interest paid under such loans 
        exceed the sum of the costs (as such term is defined in section 
        502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of 
        such loans, the administrative costs involved in carrying out a 
        program under this title for such loans, and any incidental 
        effects on governmental receipts and outlays.
            (4) Use.--Amounts from a loan under this title may be used 
        only for the purposes that amounts made available, by a State, 
        to the reinsurance program may be used for under the program.
            (5) Term.--Except as provided in subsections (e) and (f), 
        the loan shall have a term to maturity of not less than 5 years 
        and not more than 10 years.
    (e) Catastrophic Loans.--A loan under this subsection for a State 
or regional reinsurance program shall be subject to the following 
requirements:
            (1) Preconditions.--The Secretary shall have determined 
        that the reinsurance program has sustained losses as a result 
        of a covered event that exceed the ceiling coverage level for 
        the qualified reinsurance program, in accordance with 
        regulations that the Secretary shall establish.
            (2) Amount.--The principal amount of the loan made pursuant 
        to a covered event referred to in paragraph (1) may not exceed 
        the amount by which the losses sustained by the reinsurance 
        program as a result of such event exceed the ceiling coverage 
        level for the program.
            (3) Rate of interest.--Except as provided in subsection 
        (e), the loan shall bear interest at an annual rate 0.20 
        percentage points higher than marketable obligations of the 
        Treasury having a term to maturity of not less than 10 years 
        and issued during the most recently completed month, as 
        determined by the Secretary, or such higher rate as may be 
        necessary to ensure that the amounts of interest paid under 
        such loans exceed the sum of the costs (as such term is defined 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a) of such loans, the administrative costs involved 
        in carrying out a program under this title for such loans, and 
        any incidental effects on governmental receipts and outlays.
            (4) Use.--Amounts from a loan under this title may be used 
        only for the purposes that amounts made available, by a State, 
        to the reinsurance program may be used for under the program.
            (5) Term.--Except as provided in subsections (d) and (e), 
        the loan shall have a term to maturity of not less than 10 
        years.
    (f) Authority to Extend Term to Maturity.--The Secretary may extend 
the term to maturity of any liquidity loan made under subsection (d) or 
any catastrophic loan made under subsection (e) (including any such 
loan made pursuant to subsection (g)) upon a determination that 
circumstances or conditions, meeting such requirements as the Secretary 
shall establish, are such that an extension is necessary. The 
requirements of the Secretary under this subsection shall set forth the 
circumstances and conditions under which such an extension shall be 
considered necessary in the cases of--
            (1) the occurrence of multiple covered events affecting the 
        area in which a reinsurance program is operating during a 
        specific period of time; and
            (2) the area in which a reinsurance program is operating 
        has suffered economic hardship or recession, resulting in 
        decreased revenues available to the program.
    (g) Eligibility of States Without Qualified Reinsurance Programs 
for Catastrophic Loans.--
            (1) Authority.--Subject to subsection (b), the Secretary 
        may make a catastrophic loan under subsection (e) to State 
        residual insurance market entity or to a State or regional 
        reinsurance plan that is not a qualified reinsurance plan, but 
        only if a public official of the State, having legal authority 
        to cosign a loan, cosigns for the loan along with the officers 
        of the State residual insurance market entity or State or 
        regional reinsurance program, as applicable.
            (2) Interest rate.--The loan shall bear interest at an 
        annual rate that exceeds the rate for a loan under subsection 
        (c)(3) or (d)(3), as applicable, made to a qualified 
        reinsurance plan. Such rate shall be determined in accordance 
        with a schedule of interest rates, which shall be established 
        by the Secretary and shall provide lower rates for loans to 
        programs that comply with more of the requirements under 
        section 301 for qualified reinsurance programs and higher rates 
        for loans to programs that comply with fewer of such 
        requirements.
            (3) Term to maturity.--The loan shall have a term to 
        maturity that is shorter in duration than allowable for a loan 
        under subsection (c)(5) or (d)(5), as applicable, made to a 
        qualified reinsurance plan. Such term to maturity shall be 
        determined in accordance with a schedule of such terms, which 
        shall be established by the Secretary and shall provide longer 
        terms to maturity for loans to programs that comply with more 
        of the requirements under section 301(a) for qualified 
        reinsurance programs and shorter terms to maturity for loans to 
        programs that comply with fewer of such requirements.
            (4) Termination of lending authority.--The Secretary may 
        not make any loan under this subsection after the expiration of 
        the 5-year period that begins on the date of the enactment of 
        this Act.

SEC. 203. REPORTS.

    The Secretary shall submit a report to the President and the 
Congress annually that identifies and describes any loans made under 
this title during such year and any repayments during such year of 
loans made under this title, and describes actions taken to ensure 
accountability of loan funds. The Secretary shall provide for regular 
audits to be conducted for each loan made under this title and shall 
make the reports on such audits publicly available.

SEC. 204. FUNDING.

    (a) Program Fee.--
            (1) In general.--The Secretary may establish and collect, 
        from qualified reinsurance programs that are so precertified 
        pursuant to section 301(b), a reasonable fee, as may be 
        necessary to offset the expenses of the Secretary in connection 
        with carrying out the responsibilities of the Secretary under 
        this title, including--
                    (A) costs of developing, implementing, and carrying 
                out the program under this title; and
                    (B) costs of providing for precertification 
                pursuant to section 301(b) of State and regional 
                reinsurance programs as a qualified reinsurance 
                program.
            (2) Adjustment.--The Secretary may, from time to time, 
        adjust the fee under paragraph (1) as appropriate based on 
        expenses of the Secretary referred to in such paragraph.
            (3) Use.--Any fees collected pursuant to this subsection 
        shall be credited as offsetting collections of the Department 
        of the Treasury and shall be available to the Secretary only 
        for expenses referred to in paragraph (1).
    (b) Startup Costs.--There is authorized to be appropriated to the 
Secretary of the Treasury for each of fiscal years 2008 through 2012 
$5,000,000 for administrative costs of carrying out this title.
    (c) Costs of Loans; Administrative Costs.--To the extent that 
amounts of negative credit subsidy are received by the Secretary in any 
fiscal year pursuant to loans made under this title, such amounts shall 
be available for costs (as such term is defined in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of such loans and 
for costs of carrying out the program under this title for such loans.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. QUALIFIED REINSURANCE PROGRAMS.

    (a) In General.--For purposes of this Act only, a program shall be 
considered to be a qualified reinsurance program if the program--
            (1) is authorized by State law for the purposes described 
        within this section;
            (2) is an entity in which the authorizing State maintains a 
        material, financial interest;
            (3) provides reinsurance or retrocessional coverage to 
        underlying primary insurers or reinsurers for losses arising 
        from all personal real property and homeowners lines of 
        insurance, as defined in the Uniform Property & Casualty 
        Product Coding Matrix published and maintained by the National 
        Association of Insurance Commissioners;
            (4) has a governing body, a majority of whose members are 
        public officials; and
            (5) complies with such additional organizational, 
        underwriting, and financial requirements, including mitigation 
        (building codes), insurance company State subsidiaries, anti-
        concurrent clauses, and cost saving for consumers, as the 
        Secretary shall, by regulation, provide to carry out the 
        purposes of this Act.
    (b) Precertification.--The Secretary shall provide establish 
procedures and standards for State and regional reinsurance programs to 
apply to the Secretary at any time for certification (and 
recertification) as qualified reinsurance programs.
    (c) Reinsurance to Cover Exposure.--This section may not be 
construed to limit or prevent any insurer from obtaining reinsurance 
coverage for insured losses retained by insurers pursuant to this 
section, nor shall the obtaining of such coverage affect the 
calculation of the amount of any loan under this title.

SEC. 302. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Ceiling coverage level.--The term ``ceiling coverage 
        level'' means, with respect to a qualified reinsurance program, 
        the maximum aggregate amount of coverage allowed, under law, to 
        be provided at any time by the program.
            (2) Homeowners insurance.--The term ``homeowners' 
        insurance'' means homeowners' insurance as defined in the 
        Uniform Property & Casualty Product Coding Matrix published and 
        maintained by the National Association of Insurance 
        Commissioners.
            (3) Insured loss.--The term ``insured loss'' means any loss 
        insured by a qualified reinsurance program.
            (4) Qualified reinsurance program.--The term ``qualified 
        reinsurance program'' means a State or regional program that 
        meets the requirements under section 301.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.

SEC. 303. REGULATIONS.

    The Secretary shall issue such regulations as may be necessary to 
carry out this title.
                                 <all>
Homeowners' Defense Act of 2007

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