Bill > HR6274

This bill establishes a voluntary Natural Disaster Risk Reinsurance Program in the Department of the Treasury, designed to protect insurers from insolvency due to significant natural disasters while maintaining affordable insurance coverage. The program, which will begin on January 1, 2026, allows states to voluntarily participate after submitting and receiving approval for a state plan that ensures insurers will cover claims up to a predetermined trigger amount, submit necessary claims information, and pledge to repay federal payments within 10 years. Under the program, when insured losses from a covered event (such as hurricanes, earthquakes, tsunabhis, or other natural disasters) exceed the state's trigger amount, the Treasury Secretary will make federal payments to the state, which will be funded by issuing bonds. The National Academy of Sciences will help determine appropriate trigger amounts for each state, considering factors like total written premiums and the probability of severe events. States must provide annual reports on insured losses and repayment progress, and the Secretary will have broad administrative authority to investigate claims, audit processes, and establish regulations. The program covers property and casualty insurance for residential properties and aims to provide a comprehensive, flexible approach to managing natural disaster financial risks across different states and territories.

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https://www.congress.gov/bill/119th-congress/house-bill/6274/all-info