[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 764 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 764

 To require the Director of the Federal Emergency Management Agency to 
     develop a plan and submit a report to the Congress regarding 
          establishing a national windstorm insurance program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 1993

 Mr. de Lugo (for himself and Mr. Applegate) introduced the following 
bill; which was referred jointly to the Committees on Public Works and 
         Transportation and Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To require the Director of the Federal Emergency Management Agency to 
     develop a plan and submit a report to the Congress regarding 
          establishing a national windstorm insurance program.

    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 ``Windstorm Hazard Reduction Plan Act 
of 1993''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) in 1992, the property and casualty insurance industry 
        suffered more losses caused by natural disasters than in any 
        other year;
            (2) a substantial portion of the losses were caused by 
        windstorms, such as hurricanes and tornadoes; and
            (3) because of the windstorms in 1992 and recent years, in 
        certain regions of the United States and the territories of the 
        United States, including the Virgin Islands, property and 
        casualty insurers are withdrawing underwriting capacity from 
        the market by refusing to issue new policies or renew existing 
        policies, or by increasing premiums to unaffordable levels.

SEC. 3. DEVELOPMENT OF INSURANCE PLAN.

    (a) In General.--Not later than the expiration of the 90-day period 
beginning on the date of the enactment of this Act, the Director of the 
Federal Emergency Management Agency (in this Act referred to as the 
``Director'') shall develop a detailed written plan under this Act for 
establishing and carrying out a national windstorm insurance program.
    (b) Contents.--The plan required under subsection (a) shall be 
designed--
            (1) to supplement Federal disaster relief and emergency 
        assistance provided pursuant to the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act and other laws for damage 
        and loss caused by winds from hurricanes, tornadoes, and other 
        windstorms;
            (2) to make affordable insurance coverage available to 
        protect against loss resulting from physical damage to, or loss 
        of, residential structures arising from wind damage;
            (3) to provide such insurance coverage for residential 
        structures through a program that provides--
                    (A) insurance coverage for damage caused by winds 
                from hurricanes, tornadoes, and any other windstorms, 
                but not for water damage arising from any such 
                windstorms;
                    (B) insurance coverage at premium rates affordable 
                to homeowners in areas at risk of such wind damage;
                    (C) appropriate building and structural 
                requirements and other wind damage-mitigation measures;
                    (D) appropriate measures to carry out mitigation 
                efforts; and
                    (E) schedules of the amount of coverage available 
                for various residential structures;
            (4) to provide incentives for private property and casualty 
        insurers to reenter markets from which they have previously 
        withdrawn; and
            (5) to make insurance coverage available, if the Director 
        determines that such coverage would be feasible, for other 
        types or classes of properties including--
                    (A) public infrastructure facilities and properties 
                owned by State and local governments, which may include 
                airports, roads, bridges, dams, sewer systems, 
                governmental buildings, and other facilities and 
                structures;
                    (B) other residential properties;
                    (C) business properties;
                    (D) agricultural properties; and
                    (E) properties owned by private nonprofit 
                organizations.
    (c) Considerations.--The national windstorm insurance program 
contained in the plan required under subsection (a) may--
            (1) provide for participation of the private insurance 
        industry in carrying out the program;
            (2) provide coinsurance by the Director and private 
        insurers for covered losses and reinsurance for losses 
        sustained by private insurers;
            (3) define--
                    (A) the areas in which such coverage is made 
                available by establishing requirements for the 
                eligibility or participation of communities or by other 
                means;
                    (B) the types of residential properties, business 
                properties, agricultural properties, properties owned 
                by private nonprofit organizations, and public 
                infrastructure facilities and properties owned by State 
                and local governments, for which such coverage is made 
                available; and
                    (C) the availability or coverage of such insurance 
                in any other manner;
            (4) establish premium rates for coverage that are 
        actuarially based on the risk of wind-caused damage or 
        subsidized premium rates that are less than such actuarially 
        based rates;
            (5) adjust the availability of Federal loan guarantees, 
        loan insurance, or direct loans, or Federal construction or 
        disaster relief assistance (under the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act and other laws), 
        based on the purchase of a policy for windstorm insurance; and
            (6) provide community-based and other incentives for 
        participation in the program.
    (d) Consultation.--In developing the plan required under subsection 
(a), the Director shall consult with--
            (1) the heads of any Federal agencies authorized to provide 
        disaster relief;
            (2) the chief executive officers of the States and 
        territories of the United States, that suffered significant 
        losses caused by windstorms occurring after the beginning of 
        1989; and
            (3) representatives of private insurers that are 
        withdrawing underwriting capacity from the markets in the 
        States and territories referred to in paragraph (2).

SEC. 4. REPORT.

    Not later than the expiration of the 90-day period beginning on the 
date of the enactment of this Act, the Director shall submit to the 
Committee on Public Works and Transportation and the Committee on 
Banking, Finance and Urban Affairs, of the House of Representatives, 
and to the Committee on Environment and Public Works and the Committee 
on Banking, Housing, and Urban Affairs, of the Senate, a report 
containing--
            (1) the written plan required under section 3;
            (2) a statement of the amount of disaster assistance 
        provided pursuant to the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act and other Acts during each of fiscal 
        years 1989, 1990, 1991, and 1992 for property damage caused by 
        winds from hurricanes, tornadoes, and other windstorms to 
        residential properties, business properties, agricultural 
        properties, properties owned by private nonprofit 
        organizations, and public infrastructure facilities and 
        properties owned by State and local governments;
            (3) an estimate of the cost to the Federal Government of 
        carrying out the national windstorm insurance program under the 
        plan, by making coverage available only for residential 
        structures;
            (4) a description of any circumstances or situations that, 
        in the determination of the Director, would be a sufficient 
        basis for making coverage available under the national 
        windstorm insurance program for public infrastructure 
        facilities and properties owned by State and local governments, 
        other residential properties, business properties, agricultural 
        properties, and properties owned by private nonprofit 
        organizations.
            (5) an estimate of the cost to the Federal Government of 
        carrying out the national windstorm insurance program under the 
        plan, by making coverage available for residential structures 
        and for public infrastructure and properties owned by State and 
        local governments, other residential properties, business 
        properties, agricultural properties, and properties owned by 
        private nonprofit organizations.
            (6) an estimate of the effects that implementing the 
        national windstorm insurance program would have on the amount 
        of disaster assistance provided by the Federal Government;
            (7) an estimate of the effects that implementing the 
        national windstorm insurance program would have on the private 
        insurance industry and the availability of residential and 
        other property insurance and insurance against windstorm 
        damage;
            (8) a description of any amendments to the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act and other 
        Acts relating to disaster assistance that would be necessary or 
        appropriate in the event of the implementation of the national 
        windstorm insurance program; and
            (9) any other information that the Director considers 
        appropriate.

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