[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1119 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1119

     To define the circumstances under which earthquake insurance 
     requirements may be imposed by the Federal Home Loan Mortgage 
         Corporation on a specifically targeted State or area.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 3 (legislative day, July 10), 1995

 Mrs. Feinstein (for herself and Mrs. Boxer) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
     To define the circumstances under which earthquake insurance 
     requirements may be imposed by the Federal Home Loan Mortgage 
         Corporation on a specifically targeted State or area.
    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 ``Earthquake Insurance Availability 
Act of 1995''.

SEC. 2. RESTRICTIONS ON EARTHQUAKE INSURANCE REQUIREMENTS.

    Section 307 of the Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1456) is amended by adding at the end the following new 
subsection:
    ``(h) Earthquake Insurance Requirements.--
            ``(1) Definitions.--For purposes of this subsection--
                    ``(A) the term `affected State' means any State 
                that is subject to an earthquake insurance requirement 
                that is targeted to a specific State or area;
                    ``(B) the term `earthquake insurance requirement' 
                means any requirement that--
                            ``(i) is imposed by the Corporation as a 
                        condition for mortgage purchase eligibility 
                        under this title; and
                            ``(ii) includes specific insurance coverage 
                        requirements for property damage caused by 
                        earthquakes;
                    ``(C) the term `insurance commissioner' means the 
                insurance commissioner or other State official 
                primarily responsible for the oversight of insurance; 
                and
                    ``(D) the term `State' means any State, territory, 
                or possession of the United States, the District of 
                Columbia, or the Commonwealth of Puerto Rico; and
                    ``(E) the term `targeted to a specific State or 
                area', with respect to an earthquake insurance 
                requirement, means any requirement that is not 
                applicable to mortgages secured by dwellings located in 
                all States.
            ``(2) Imposition of certain earthquake insurance 
        requirements.--
                    ``(A) In general.--The Corporation may impose an 
                earthquake insurance requirement that is targeted to a 
                specific State or area only if the insurance 
                commissioner of the State certifies in writing the 
                existence of reasonable insurance capacity in the 
                State.
                    ``(B) Determination of reasonable insurance 
                capacity.--In determining whether to make a 
                certification under subparagraph (A), the insurance 
                commissioner of each affected State shall consider 
                whether--
                            ``(i) the insurance product necessary for 
                        compliance with the earthquake insurance 
                        requirement at issue is--
                                    ``(I) available in the State or 
                                area, as applicable;
                                    ``(II) underwritten by an adequate 
                                number of companies to meet projected 
                                demand in the State or area, as 
                                applicable; and
                                    ``(III) affordably priced for the 
                                consumers to which the insurance is 
                                targeted; and
                            ``(ii) compliance with the earthquake 
                        insurance requirement at issue would cause 
                        undue hardship for citizens of the State.''.

SEC. 3. EFFECTIVE DATE.

    The amendment made by this Act shall take effect on January 1, 
1995.
                                 <all>