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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6274 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6274
To establish a Natural Disaster Risk Reinsurance Program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2025
Mr. Moskowitz introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish a Natural Disaster Risk Reinsurance Program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Natural Disaster Risk Reinsurance
Program Act''.
SEC. 2. NATURAL DISASTER RISK REINSURANCE PROGRAM.
(a) Establishment of Program.--
(1) In general.--There is established in the Department of
the Treasury the Natural Disaster Risk Reinsurance Program,
which shall apply only to covered events occurring on or after
January 1, 2026.
(2) Goal.--The goal of the Program shall be to protect
insurers from insolvency resulting from covered events of a
significant magnitude in a manner that provides for
affordability of coverage in the marketplace for losses from
such covered events.
(3) Authority of secretary.--Notwithstanding any other
provision of State or Federal law, the Secretary shall
administer the Program, in consultation with the Director of
the Federal Insurance Office, and shall make payments to States
in accordance with subsection (b) to cover insured losses.
(4) Voluntary participation.--
(A) In general.--Participation in the Program shall
be voluntary on the part of a State, subject to the
requirements under paragraph (4).
(B) Election.--The Secretary shall provide a
procedure by which States may elect to participate in
the Program.
(C) Termination of participation.--The Secretary
shall provide a procedure by which States may elect to
terminate participation in the Program, which shall
require advance notice to the Secretary of not less
than 180 days before such termination is effective.
(5) Required state plan.--To be eligible to participate in
the Program a State shall have in effect a plan, approved by
the Secretary, that provides such assurances to the Secretary
as the Secretary considers necessary--
(A) to ensure that insurers will cover claims for
insured losses occurring in the State during the
participation of the State in the Program not exceeding
the trigger amount for the State under subsection
(b)(2);
(B) to ensure that insurers submit to the State
insurance regulator and the State insurance regulator
submits to the Secretary, in accordance with such
reasonable procedures as the Secretary may establish,
information sufficient for administration of the
Program, including information regarding claims for
insured losses occurring in the State, insured losses
incurred, and direct written premium for covered
insurance in the State;
(C) to distribute Federal payments under the
Program appropriately among insurers based on insured
losses suffered by insurers and insurers' market
shares;
(D) to pledge the State's full faith and credit
toward full repayment to the Secretary, within 10 years
of receipt, of any Federal payment amounts provided
under subsection (b) and to provide a regular payment
schedule over such 10-year period; and
(E) to provide appropriate treatment under the
program for any insurer that is a State residual market
insurance entity.
(6) Treatment of existing policies.--This Act may not be
construed to affect any policy for covered insurance in force
on the date of the commencement of participation in the Program
by the State in which the dwelling covered by such insurance is
located, but the Program shall apply to policies renewed after
such date.
(b) Federal Payments for Excessive Insured Losses.--
(1) Federal payment.--Pursuant to the occurrence of a
covered event, the Secretary shall pay to each participating
State an amount equal to the amount by which the aggregate
industry-wide insured losses within such participating State
resulting from such covered event exceed the trigger amount in
effect at such time under paragraph (2) for such participating
State for the type of covered event that occurred. The
Secretary shall provide for payments under this subsection for
a participating State for a covered event to be made in
installments of approximately 25 percent of the estimated total
amount to be provided for such State in connection with such
disaster, as best determined by the Secretary after
consideration of the information regarding insured losses
provided to the Secretary pursuant to paragraph (2)(D).
(2) State trigger amounts.--
(A) NAS authority.--The Secretary shall enter into
an agreement with the National Academy of Sciences (in
this paragraph referred to as the ``Academy'') under
which the Academy shall propose to the Secretary, for
each participating State and for each different type of
covered event, a trigger amount under this paragraph. A
trigger amount proposed for a State shall be effective
for purposes of the Program only upon review,
adjustment if necessary, and approval by the Secretary.
(B) Considerations.--The trigger amount proposed by
the Academy for a participating State for a type of
covered event shall be the lesser of--
(i) the total direct written premiums for
covered insurance in the participating State;
and
(ii) the amount, as determined by the
Academy, that when applied under the Program,
protects insurers from insolvency in the case
of covered event of such type of a severity
equal to or exceeding that of a covered event
of such type having a two percent chance of
occurring in any given year.
(C) Revision.--The agreement pursuant to
subparagraph (A) shall provide for the Academy to
review and revise the proposed trigger amounts for each
participating State not less frequently than once every
24 months, and more frequently at the request of the
Secretary. Any revised trigger amount may not take
effect under the Program before the expiration of the
180-day period beginning upon the provision by the
Secretary to such participating State of written
notification of such revised trigger amount.
(D) Assessment of insured losses.--The agreement
pursuant to subparagraph (A) shall provide that
following the occurrence of a covered event, the
Academy shall, for each participating State affected,
make assessments of the insured losses for each such
State and provide such information to the Secretary.
Such assessments shall be made on an ongoing basis as
necessary to make an accurate determination of such
insured losses.
(E) Experts.--
(i) Authority.--The agreement pursuant to
subparagraph (A) shall provide that, in
establishing proposed trigger amounts under
this paragraph and assessing insured losses
pursuant to subparagraph (D), the Academy may
contract with such experts and consultants,
including experts in disaster modeling, as it
considers appropriate.
(ii) Authorization of appropriations.--
There is authorized to be appropriated to the
National Academy of Sciences such sums as may
be necessary for costs of hiring experts and
consultants pursuant to clause (i).
(3) Authority to issue bonds to fund federal payments.--
(A) Issuance.--In connection with a covered event
for which the Secretary is required to make a payment
under paragraph (1) to a participating State, the
Secretary shall issue bonds under this paragraph, the
proceeds of which shall be used for making such
payment.
(B) Terms.--Bonds issued under this paragraph shall
be in such form and denominations, and shall be subject
to such terms and conditions of issue, conversion,
redemption, maturation, and payment as the Secretary
may prescribe and shall be fully and unconditionally
guaranteed both as to interest and principal by the
United States, and such guaranty shall be expressed on
the face of each bond.
(C) Interest.--Bonds issued under this paragraph
shall bear interest at a rate not less than the current
average yield on outstanding market obligations of the
United States of comparable maturity during the month
preceding the issuance of the obligation as determined
by the Secretary.
(D) Amount.--The aggregate amount of bonds issued
under this paragraph in connection with a covered event
shall be equal to the aggregate amount of payments made
by the Secretary pursuant to paragraph (1) in
connection with such covered event and such additional
amount as the Secretary considers appropriate to cover
any administrative costs incurred by the State in
connection with borrowing under this paragraph in
connection with such covered event.
(E) Treatment.--All bonds issued under this
paragraph, and the interest on or credits with respect
to such obligations, shall not be subject to taxation
by any State, county, municipality, or local taxing
authority.
(4) Recoupment of federal amounts.--Each participating
State that receives a payment pursuant to paragraph (1) shall
repay the Secretary, pursuant to its pledge made in accordance
with subsection (a)(4)(D) and within 10 years of such receipt,
an amount equal to such payment, together with interest on such
amount sufficient to cover the costs to the Secretary of
borrowing such amounts pursuant to this paragraph. The
Secretary shall cover any amounts repaid pursuant to this
paragraph into the general fund of the Treasury.
SEC. 3. REPORTING.
(a) By States.--
(1) Annual reports.--The Secretary shall require the State
insurance regulator for each participating State to submit a
report annually to the Secretary regarding each covered event
resulting in payment under section 2(b)(1), during the period
that any payment amounts for such event have not been fully
repaid in accordance with section 2(b)(4), regarding insured
losses in the State resulting from such covered event,
additional such insured losses expected to be incurred,
including the timing of such losses, and any progress in
repayment to the Secretary for the Federal payments made.
(2) Final report.--The Secretary shall require the State
insurance regulator for each participating State receiving a
payment under section 2(b)(1) in connection with a covered
event to submit to the Secretary, upon full repayment of all
such payments made in connection with such covered event, a
final report containing such information as the Secretary shall
require.
SEC. 4. GENERAL AUTHORITY.
(a) General Authority.--The Secretary shall have the powers and
authorities necessary to carry out the Program, including authority--
(1) to investigate and audit all claims for a covered event
in a State for which payments have been made by the Secretary
under the Program; and
(2) to prescribe regulations and procedures to effectively
administer and implement the Program.
(b) Consultation.--The Secretary shall consult with the National
Association of Insurance Commissioners, as the Secretary determines
appropriate, concerning the Program.
(c) Contracts for Services.--The Secretary may employ persons or
contract for services as may be necessary to implement the Program.
(d) Submission of Premium Information.--
(1) In general.--The Secretary shall annually compile
information on the premium rates of insurers for covered
insurance for the preceding year.
(2) Access to information.--To the extent that such
information is not otherwise available to the Secretary, the
Secretary may require each insurer to submit to the National
Association of Insurance Commissioners premium rates for
covered insurance, as necessary to carry out paragraph (1), and
the National Association of Insurance Commissioners shall make
such information available to the Secretary.
(3) Availability to congress.--The Secretary shall make
information compiled under this subsection available to the
Congress, upon request.
(e) Administrative Expenses.--There are hereby appropriated, out of
funds in the Treasury not otherwise appropriated, such sums as may be
necessary to pay reasonable costs of administering the Program.
SEC. 5. DEFINITIONS.
In this Act, the following definitions shall apply:
(1) Affiliate.--The term ``affiliate'' means, with respect
to a participating insurer, any entity that controls, is
controlled by, or is under common control with the insurer.
(2) Control.--
(A) In general.--An entity has ``control'' over
another entity, if--
(i) the entity directly or indirectly or
acting through 1 or more other persons owns,
controls, or has power to vote 25 percent or
more of any class of voting securities of the
other entity;
(ii) the entity controls in any manner the
election of a majority of the directors or
trustees of the other entity; or
(iii) the Secretary determines, after
notice and opportunity for hearing, that the
entity directly or indirectly exercises a
controlling influence over the management or
policies of the other entity.
(B) Rule of construction.--An entity, including any
affiliate thereof, does not have ``control'' over
another entity, if, as of January 1, 2026, the entity
is acting as an attorney-in-fact, as defined by the
Secretary, for the other entity and such other entity
is a reciprocal insurer, provided that the entity is
not, for reasons other than the attorney-in-fact
relationship, defined as having ``control'' under
subparagraph (A).
(3) Covered event.--
(A) In general.--The term ``covered event'' means
volcanic eruption, severe storm, tropical storm,
hurricane, earthquake, tsunami, fire, tornado, hail, or
any other natural disaster not eligible for coverage
under the National Flood Insurance Program under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), that is certified by the Secretary as a covered
event for purposes of this Act.
(B) Nondelegation.--The Secretary may not delegate
or designate to any other officer, employee, or person,
any certification under subparagraph (A) of whether,
during the effective period of the Program, a covered
event occurs.
(4) Covered insurance.--The term ``covered insurance''
means property and casualty insurance coverage for a single-
family or multifamily residence, including homeowners
insurance, condominium insurance, cooperative insurance, and
residential rental insurance. Such term does not include
private mortgage insurance (as such term is defined in section
2 of the Homeowners Protection Act of 1998 (12 U.S.C. 4901)) or
title insurance.
(5) Insured loss.--
(A) In general.--The term ``insured loss'' means
any loss that--
(i) results from a covered event;
(ii) is covered by covered insurance issued
by an insurer, regardless of whether the
insurer is solvent; and
(iii) occurs within a State.
(B) Included amounts.--Such term includes the costs
of claims investigation, adjustment, litigation, and
all other usual costs paid by the insurer in connection
with coverage for covered event.
(6) Insurer.--The term insurer means any entity, including
any affiliate thereof--
(A) that is--
(i) licensed or admitted to engage in the
business of providing primary or excess
insurance in any State;
(ii) not licensed or admitted as described
in clause (i), if it is an eligible surplus
line carrier listed on the Quarterly Listing of
Alien Insurers of the National Association of
Insurance Commissioners, or any successor
thereto;
(iii) approved for the purpose of offering
property and casualty insurance by a Federal
agency in connection with maritime, energy, or
aviation activity; or
(iv) a State residual market insurance
entity;
(B) that receives direct earned premiums for
covered insurance coverage; and
(C) that meets any other criteria that the
Secretary may reasonably prescribe.
(7) Participating state.--The term ``participating State''
means a State that has elected pursuant to section 2(a)(3) to
participate in the Program and has not terminated such
participation.
(8) Person.--The term ``person'' means any individual,
business or nonprofit entity (including those organized in the
form of a partnership, limited liability company, corporation,
or association), trust or estate, or a State or political
subdivision of a State or other governmental unit.
(9) Program.--The term ``Program'' means the Natural
Disaster Risk Reinsurance Program established by this Act.
(10) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(11) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana Islands,
American Samoa, Guam, the United States Virgin Islands, and any
other territory or possession of the United States.
(12) State insurance regulator.--The term ``State insurance
regulator'' means, with respect to a State, the regulatory
authority responsible for the supervision of insurers.
(13) Rule of construction for dates.--With respect to any
reference to a date in this Act, such day shall be construed--
(A) to begin at 12:01 a.m. on that date; and
(B) to end at midnight on that date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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