[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1429 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1429

       To establish a bipartisan commission on insurance reform.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2011

  Mr. Nelson of Florida introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
       To establish a bipartisan commission on insurance reform.

    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 ``Commission on Catastrophic Disaster 
Risk and Insurance Act of 2011''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Hurricanes Katrina, Rita, and Wilma, which struck the 
        United States in 2005, caused more than $200,000,000,000 in 
        total economic losses, including insured and uninsured losses.
            (2) Although private sector insurance is currently 
        available to spread some catastrophe-related losses throughout 
        the United States and internationally, most experts believe 
        there will be significant insurance and reinsurance shortages, 
        resulting in dramatic rate increases for consumers and 
        businesses, and the unavailability of catastrophe insurance.
            (3) The Federal Government has provided and will continue 
        to provide billions of dollars and resources to pay for losses 
        from catastrophes, including hurricanes, volcanic eruptions, 
        tsunamis, tornados, and other disasters, at huge costs to the 
        people of the United States.
            (4) The Federal Government has a critical interest in 
        ensuring appropriate and fiscally responsible risk management 
        of catastrophes. Mortgages require reliable property insurance, 
        and the unavailability of reliable property insurance would 
        make most real estate transactions impossible. In addition, the 
        public health, safety, and welfare demand that structures 
        damaged or destroyed in a catastrophe be reconstructed as soon 
        as possible. Therefore, the inability of the private sector 
        insurance and reinsurance markets to maintain sufficient 
        capacity to enable people in the United States to obtain 
        property insurance coverage in the private sector endangers the 
        national economy and the public health, safety, and welfare.
            (5) Multiple proposals have been introduced in Congress 
        during the past decade to address catastrophic risk insurance, 
        including proposals to create a national catastrophic 
        reinsurance fund and revise the Federal tax code to allow 
        insurers to use tax-deferred catastrophe funds, yet Congress 
        has failed to act on any of these proposals.
            (6) To the extent that the United States faces high risks 
        from catastrophe exposure, essential technical information on 
        financial structures and innovations in the catastrophe 
        insurance market is needed.
            (7) The most efficient and effective approach to assessing 
        the catastrophe insurance problem in a public policy context is 
        to establish a bipartisan commission of experts to study the 
        management of catastrophic disaster risk, and to require that 
        commission to timely report its recommendations to Congress so 
        that Congress can quickly craft a solution to protect the 
        people of the United States.

SEC. 3. ESTABLISHMENT.

    There is established a bipartisan Commission on Catastrophic 
Disaster Risk and Insurance (in this Act referred to as the 
``Commission'').

SEC. 4. MEMBERSHIP.

    (a) Members.--The Commission shall be composed of the following:
            (1) The Administrator of the Federal Emergency Management 
        Agency or a designee of the Administrator.
            (2) The Administrator of the National Oceanic and 
        Atmospheric Administration or a designee of the Administrator.
            (3) Twelve additional members, of whom--
                    (A) 1 shall be a representative of a consumer 
                group;
                    (B) 1 shall be a representative of a primary 
                insurance company;
                    (C) 1 shall be a representative of a reinsurance 
                company;
                    (D) 1 shall be an independent insurance agent with 
                experience in writing property and casualty insurance 
                policies;
                    (E) 1 shall be a State insurance regulator;
                    (F) 1 shall be a State emergency operations 
                official;
                    (G) 1 shall be a scientist;
                    (H) 1 shall be a faculty member of an accredited 
                university with experience in risk management;
                    (I) 1 shall be a member of nationally recognized 
                think tank with experience in risk management;
                    (J) 1 shall be a homebuilder with experience in 
                structural engineering;
                    (K) 1 shall be a mortgage lender; and
                    (L) 1 shall be a nationally recognized expert in 
                antitrust law.
    (b) Manner of Appointment.--
            (1) In general.--Each member of the Commission described in 
        subsection (a)(3) shall be appointed jointly by, and only upon 
        unanimous agreement of--
                    (A) the majority leader of the Senate;
                    (B) the minority leader of the Senate;
                    (C) the Speaker of the House of Representatives; 
                and
                    (D) the minority leader of the House of 
                Representatives.
            (2) Consultation.--In making an appointment under paragraph 
        (1), each individual described in paragraph (1) shall consult 
        with the President.
    (c) Eligibility Limitation.--Except as provided in subsection (a), 
no member or officer of Congress, or other officer of the Executive 
Branch of the United States Government or any State government may be 
appointed to be a member of the Commission.
    (d) Period of Appointment.--
            (1) In general.--Each member of the Commission shall be 
        appointed to serve until the termination of the Commission.
            (2) Vacancies.--A vacancy on the Commission shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment was made.
    (e) Quorum.--
            (1) Majority.--A majority of the members of the Commission 
        shall constitute a quorum, but a lesser number may hold 
        hearings.
            (2) Approval actions.--All recommendations and reports of 
        the Commission required under this Act shall be approved by a 
        majority vote of a quorum of the Commission.
    (f) Chairperson.--The majority leader of the Senate, the minority 
leader of the Senate, the Speaker of the House of Representatives, and 
the minority leader of the House of Representatives shall jointly 
select 1 member appointed pursuant to subsection (a) to serve as the 
Chairperson of the Commission.
    (g) Meetings.--The Council shall meet at the call of the 
Chairperson or a majority of the members of the Commission then 
serving.

SEC. 5. DUTIES OF THE COMMISSION.

    (a) Assessment.--The Commission shall assess--
            (1) the condition of the property and casualty insurance 
        and reinsurance markets in the aftermath of Hurricane Katrina 
        of 2005, Hurricane Rita of 2005, Hurricane Wilma of 2005, and 
        the 4 major hurricanes that struck the United States in 2004; 
        and
            (2) the ongoing exposure of the United States to 
        earthquakes, volcanic eruptions, tsunamis, and floods.
    (b) Recommendations.--
            (1) Development of recommendations.--The Commission shall 
        develop recommendations for any legislative or regulatory 
        changes necessary to--
                    (A) improve the domestic and international 
                financial health and competitiveness of the property 
                and casualty insurance and reinsurance markets; and
                    (B) ensure that consumers have--
                            (i) adequate insurance coverage available 
                        when an insured event occurs; and
                            (ii) the best possible range of insurance 
                        products at competitive prices.
            (2) Considerations.--In developing any recommendations 
        under paragraph (1), the Commission shall consider--
                    (A) the structure of the catastrophic insurance and 
                reinsurance markets and the relevant commercial 
                practices in such markets for providing insurance 
                protection to different types of people in the United 
                States;
                    (B) the constraints of and opportunities for 
                implementing a catastrophic insurance system that could 
                resolve key obstacles that impede broader 
                implementation of catastrophe risk management and 
                financing;
                    (C) methods to improve risk underwriting practices, 
                including--
                            (i) analysis of modalities of risk transfer 
                        for potential financial losses;
                            (ii) assessment of private securitization 
                        of insurances risks;
                            (iii) private-public partnerships to 
                        increase insurance capacity in constrained 
                        markets; and
                            (iv) the financial feasibility and 
                        sustainability of a national catastrophe pool 
                        or regional catastrophe pools designed to 
                        provide adequate insurance coverage and 
                        increased underwriting capacity to insurers and 
                        reinsurers;
                    (D) approaches for implementing a public insurance 
                scheme for low-income communities, in order to promote 
                risk reduction and explicit insurance coverage in such 
                communities;
                    (E) methods to strengthen regulatory requirements 
                for insurance and supervision of such requirements, 
                including solvency for catastrophic risk reserves;
                    (F) methods to promote public insurance policies 
                linked to programs for loss reduction among people in 
                the United States without insurance;
                    (G) methods to strengthen the risk assessment and 
                enforcement of structural mitigation and vulnerability 
                reduction measures, such as zoning and building code 
                compliance; and
                    (H) the appropriate role for the Federal Government 
                in stabilizing the property and casualty insurance and 
                reinsurance markets, with an analysis of--
                            (i) options such as--
                                    (I) a reinsurance mechanism;
                                    (II) the modernization of Federal 
                                taxation policies; and
                                    (III) an ``insurance of last 
                                resort'' mechanism; and
                            (ii) how to fund the options described in 
                        clause (i).

SEC. 6. REPORT.

    Not later than 180 days after the date on which all members of the 
Commission are appointed, the Commission shall submit to the President 
and Congress a final report containing a detailed statement of the 
results of the assessment and the recommendations required under 
section 5.

SEC. 7. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission or, at the direction of the 
Commission, any subcommittee or member of the Commission, may, for the 
purpose of carrying out this Act--
            (1) hold such public hearings in such cities and countries, 
        sit and act at such times and places, take such testimony, 
        receive such evidence, and administer such oaths or 
        affirmations as the Commission or such subcommittee or member 
        considers advisable; and
            (2) require, by subpoena or otherwise, the attendance and 
        testimony of such witnesses and the production of such books, 
        records, correspondence, memoranda, papers, documents, tapes, 
        and materials as the Commission or such subcommittee or member 
        considers advisable.
    (b) Issuance and Enforcement of Subpoenas.--
            (1) Issuance.--Subpoenas issued under subsection (a) shall 
        bear the signature of the Chairperson of the Commission and 
        shall be served by any person or class of persons designated by 
        the Chairperson for that purpose.
            (2) Enforcement.--In the case of contumacy or failure to 
        obey a subpoena issued under subsection (a), the United States 
        district court for the judicial district in which the 
        subpoenaed person resides, is served, or may be found may issue 
        an order requiring such person to appear at any designated 
        place to testify or to produce documentary or other evidence. 
        Any failure to obey the order of the court may be punished by 
        the court as a contempt of that court.
            (3) Confidentiality.--
                    (A) In general.--Information obtained under a 
                subpoena issued under subsection (a) which is deemed 
                confidential, or with reference to which a request for 
                confidential treatment is made by the person furnishing 
                such information--
                            (i) shall be exempt from disclosure under 
                        section 552 of title 5, United States Code; and
                            (ii) shall not be published or disclosed 
                        unless the Commission determines that the 
                        withholding of such information is contrary to 
                        the interest of the United States.
                    (B) Exception.--The requirements of subparagraph 
                (A) shall not apply to the publication or disclosure of 
                any data aggregated in a manner that ensures protection 
                of the identity of the person furnishing such data.
    (c) Authority of Members or Agents of the Commission.--Any member 
or agent of the Commission may, if authorized by the Commission, take 
any action which the Commission is authorized to take by this Act.
    (d) Obtaining Official Data.--
            (1) Authority.--Notwithstanding any provision of section 
        552a of title 5, United States Code, the Commission may secure 
        directly from any department or agency of the United States any 
        information necessary to enable the Commission to carry out the 
        purposes of this Act.
            (2) Procedure.--Upon request of the Chairperson of the 
        Commission, the head of that department or agency shall furnish 
        the information requested to the Commission.
    (e) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (f) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, any administrative support 
services necessary for the Commission to carry out its responsibilities 
under this Act.
    (g) Gifts.--
            (1) In general.--The Commission may accept, use, and 
        dispose of gifts or donations of services or property.
            (2) Regulations.--The Commission shall adopt internal 
        regulations governing the receipt of gifts or donations of 
        services or property similar to those described in part 2601 of 
        title 5, Code of Federal Regulations.

SEC. 8. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission who is 
not an officer or employee of the Federal Government shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Commission. All members of the Commission who are 
officers or employees of the United States shall serve without 
compensation in addition to that received for their services as 
officers or employees of the United States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Subcommittees.--The Commission may establish subcommittees and 
appoint members of the Commission to such subcommittees as the 
Commission considers appropriate.
    (d) Staff.--Subject to such policies as the Commission may 
prescribe, the Chairperson of the Commission may appoint and fix the 
pay of such additional personnel as the Chairperson considers 
appropriate to carry out the duties of the Commission.
    (e) Applicability of Certain Civil Service Laws.--Employees of the 
Commission may be--
            (1) appointed without regard to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service; and
            (2) paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to classification and General Schedule pay rates, 
        except that an individual so appointed may not receive pay in 
        excess of the annual rate of basic pay prescribed for level IV 
        of the Executive Schedule under section 5315 of that title.
    (f) Experts and Consultants.--In carrying out the duties of the 
Commission, the Commission may procure temporary and intermittent 
services of consultants and experts under section 3109(b) of title 5, 
United States Code, at rates for individuals which do not exceed the 
daily equivalent of the annual rate of basic pay prescribed for level 
IV of the Executive Schedule under section 5315 of that title.
    (g) Detail of Government Employees.--Upon request of the 
Chairperson of the Commission--
            (1) any Federal Government employee may be detailed to the 
        Commission to assist in carrying out the duties of the 
        Commission on a reimbursable basis; and
            (2) a detail under paragraph (1) shall be without 
        interruption or loss of civil service status or privilege.

SEC. 9. TERMINATION.

    The Commission shall terminate 60 days after the date on which the 
Commission submits the report required under section 6.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $5,000,000 to carry out 
this Act.
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