H.R. 6274

[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>