[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6983 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 6983

    To establish a Pandemic Risk Reinsurance Program, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2020

   Mrs. Carolyn B. Maloney of New York (for herself, Mr. Thompson of 
California, Ms. Norton, Ms. DeLauro, Ms. Jackson Lee, Ms. Pingree, Mr. 
 Courtney, Mr. Rose of New York, Mr. Cisneros, Mr. Gonzalez of Texas, 
  Ms. Porter, Mr. Ted Lieu of California, Miss Rice of New York, Mr. 
Green of Texas, Mr. Morelle, Mr. Meeks, Ms. Wild, Mr. Ryan, Ms. Titus, 
Ms. Meng, and Mr. Danny K. Davis of Illinois) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To establish a Pandemic 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 ``Pandemic Risk Insurance Act of 
2020''.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish a Federal program that 
provides for a transparent system of shared public and private 
compensation for business interruption losses resulting from a pandemic 
or outbreak of communicable disease, in order to--
            (1) protect consumers by addressing market disruptions and 
        ensure the continued widespread availability and affordability 
        of business interruption coverage for losses resulting from a 
        pandemic or outbreak of communicative disease; and
            (2) allow for a transitional period for the private markets 
        to stabilize, resume pricing of such insurance, and build 
        capacity to absorb any future losses, while preserving State 
        insurance regulation and consumer protections.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Covered public health emergency.--
                    (A) In general.--The term ``covered public health 
                emergency'' means any outbreak of infectious disease or 
                pandemic--
                            (i) for which an emergency is declared, on 
                        or after January 1, 2021, under the Public 
                        Health Service Act; and
                            (ii) that is certified by the Secretary of 
                        Health and Human Services, as a public health 
                        emergency.
                    (B) Nondelegation.--The Secretary may not delegate 
                or designate to any other officer, employee, or person, 
                any determination under this paragraph of whether, 
                during the effective period of the Program, a covered 
                public health emergency has occurred.
            (2) Affiliate.--The term ``affiliate'' means, with respect 
        to an participating insurer, any entity that controls, is 
        controlled by, or is under common control with the insurer.
            (3) Business interruption insurance.--The term ``business 
        interruption insurance'' means commercial lines of property and 
        casualty insurance coverage, including event cancellation 
        insurance or other non-property contingent business 
        interruption insurance, provided or made available for losses 
        resulting from periods of suspended business operations, 
        including losses from a covered public health emergency, or a 
        civil order related to a covered public health emergency, 
        whether provided under broader coverage for property and 
        casualty losses or separately.
            (4) 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 the date of enactment of the 
                Act, 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).
            (5) Direct earned premium.--The term ``direct earned 
        premium'' means a direct earned premium for property and 
        casualty insurance issued by any participating insurer for 
        insurance against losses occurring in the United States.
            (6) Event.--The term ``event'' means a trade show, consumer 
        show, exhibition, fair, conference, convention, meeting, 
        seminar, charity event, auction, gala dinner, competition, 
        sporting event, or other similar event.
            (7) Event cancellation insurance.--The term ``event 
        cancellation insurance'' means insurance that indemnifies an 
        insured for losses that occur as a consequence of--
                    (A) cancellation, abandonment, or rescheduling of 
                an event; or
                    (B) non-appearance at an event of a principal 
                speaker.
            (8) Insured loss.--The term ``insured loss'' means any loss 
        resulting from a covered public health emergency that is 
        covered by primary or excess business interruption insurance 
        issued by a participating insurer if such loss occurs--
                    (A) within the United States; and
                    (B) during the period that the covered public 
                health emergency for such area is in effect.
            (9) 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 NAIC, 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;
                            (iv) a State residual market insurance 
                        entity or State workers' compensation fund; or
                            (v) any other entity described in section 
                        4(f), to the extent provided in the rules of 
                        the Secretary issued under section 4(f);
                    (B) that receives direct earned premiums for any 
                type of commercial property and casualty insurance 
                coverage, other than in the case of entities described 
                in subsections (d) and (f) of section 4; and
                    (C) that meets any other criteria that the 
                Secretary may reasonably prescribe.
        Such term includes captive insurers and other self-insurance 
        arrangements by municipalities and other entities (such as 
        workers' compensation self-insurance programs and State 
        workers' compensation reinsurance pools).
            (10) Insurer deductible.--The term ``insurer deductible'' 
        means, with respect to a participating insurer--
                    (A) the value of the participating insurer's direct 
                earned premiums during the immediately preceding 
                calendar year, multiplied by 5 percent; and
                    (B) notwithstanding subparagraph (A), for any 
                calendar year, if a participating insurer has not had a 
                full year of operations during the calendar year 
                immediately preceding such calendar year, such portion 
                of the direct earned premiums of the participating 
                insurer as the Secretary determines appropriate, 
                subject to appropriate methodologies established by the 
                Secretary for measuring such direct earned premiums.
            (11) NAIC.--The term ``NAIC'' means the National 
        Association of Insurance Commissioners.
            (12) Participating insurer.--The term ``participating 
        insurer'' means, with respect to a calendar year, an insurer 
        that has elected pursuant to section 4(a)(3) to participate in 
        the Pandemic Risk Reinsurance Program under this Act for such 
        calendar year.
            (13) 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.
            (14) Program.--The term ``Program'' means the Pandemic Risk 
        Reinsurance Program established by this Act.
            (15) Property and casualty insurance.--The term ``property 
        and casualty insurance''--
                    (A) means commercial lines of property and casualty 
                insurance, including excess insurance, workers' 
                compensation insurance, and event cancellation 
                insurance; and
                    (B) does not include--
                            (i) Federal crop insurance issued or 
                        reinsured under the Federal Crop Insurance Act 
                        (7 U.S.C. 1501 et seq.), or any other type of 
                        crop or livestock insurance that is privately 
                        issued or reinsured;
                            (ii) 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;
                            (iii) financial guaranty insurance issued 
                        by monoline financial guaranty insurance 
                        corporations;
                            (iv) insurance for medical malpractice;
                            (v) health or life insurance, including 
                        group life insurance;
                            (vi) flood insurance provided under the 
                        National Flood Insurance Act of 1968 (42 U.S.C. 
                        4001 et seq.);
                            (vii) reinsurance or retrocessional 
                        reinsurance;
                            (viii) commercial automobile insurance;
                            (ix) burglary and theft insurance;
                            (x) surety insurance;
                            (xi) professional liability insurance; or
                            (xii) farm owners multiple peril insurance.
            (16) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (17) 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, each of the United States Virgin Islands, 
        and any territory or possession of the United States.
            (18) United states.--The term ``United States'' means the 
        several States.
            (19) 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.

SEC. 4. PANDEMIC RISK REINSURANCE PROGRAM.

    (a) Establishment of Program.--
            (1) In general.--There is established in the Department of 
        the Treasury the Pandemic Risk Reinsurance Program.
            (2) Authority of the secretary.--Notwithstanding any other 
        provision of State or Federal law, the Secretary shall 
        administer the Program, and shall pay the Federal share of 
        compensation for insured losses in accordance with subsection 
        (e).
            (3) Voluntary participation.--
                    (A) Eligibility.--Each entity that meets the 
                definition of an insurer under this Act may participate 
                in the Program.
                    (B) Election.--The Secretary shall provide a 
                process by which insurers may elect to participate in 
                the Program, with respect to a calendar year.
            (4) Treatment of existing policies.--This Act may not be 
        construed to affect any policy for business interruption 
        insurance in force on the date of the enactment of this Act.
    (b) Conditions for Federal Payments.--No payment may be made by the 
Secretary under this section with respect to an insured loss that is 
covered by a participating insurer, unless--
            (1) the person that suffers the insured loss, or a person 
        acting on behalf of that person, files a claim with the 
        participating insurer;
            (2) the participating insurer provides clear and 
        conspicuous disclosure to the policyholder of the premium 
        charged for insured losses covered by the Program and the 
        Federal share of compensation for insured losses under the 
        Program--
                    (A) in the case of any policy that is issued before 
                the date of enactment of this Act, not later than 90 
                days after that date of enactment;
                    (B) in the case of any policy that is issued within 
                90 days of the date of enactment of this Act, at the 
                time of offer and renewal of the policy; and
                    (C) in the case of any policy that is issued more 
                than 90 days after the date of enactment of this Act, 
                on a separate line item in the policy, at the time of 
                offer and renewal of the policy;
            (3) in the case of any policy that is issued after the date 
        of enactment of this Act, the participating insurer provides 
        clear and conspicuous disclosure to the policyholder of the 
        existence of the $750,000,000,000 cap under subsection (e)(2), 
        at the time of offer, purchase, and renewal of the policy;
            (4) the participating insurer processes the claim for the 
        insured loss in accordance with appropriate business practices, 
        and any reasonable procedures that the Secretary may prescribe; 
        and
            (5) the participating insurer submits to the Secretary, in 
        accordance with such reasonable procedures as the Secretary may 
        establish--
                    (A) a claim for payment of the Federal share of 
                compensation for insured losses under the Program;
                    (B) written certification--
                            (i) of the underlying claim; and
                            (ii) of all payments made for insured 
                        losses; and
                    (C) certification of its compliance with the 
                provisions of this subsection.
    (c) Mandatory Availability of Coverage for Covered Public Health 
Emergencies Under Business Interruption Coverage.--During each calendar 
year, each participating insurer shall, with respect to such year--
            (1) make available, in all of its business interruption 
        insurance policies, coverage for insured losses; and
            (2) make available business interruption insurance coverage 
        for insured losses that does not differ materially from the 
        terms, conditions, amounts, limits, deductibles, or self-
        insured retentions and other coverage grants, limitations, and 
        exclusions applicable to losses arising from events other than 
        public health emergencies.
    (d) State Residual Market Insurance Entities.--
            (1) In general.--The Secretary shall issue regulations, as 
        soon as practicable after the date of enactment of this Act, 
        that apply the provisions of this Act to State residual market 
        insurance entities and State workers' compensation funds.
            (2) Treatment of certain entities.--For purposes of the 
        regulations issued pursuant to paragraph (1)--
                    (A) a State residual market insurance entity that 
                does not share its profits and losses with private 
                sector insurers shall be treated as a separate insurer; 
                and
                    (B) a State residual market insurance entity that 
                shares its profits and losses with private sector 
                insurers shall not be treated as a separate insurer, 
                and shall report to each private sector insurance 
                participant its share of the insured losses of the 
                entity, which shall be included in each private sector 
                participating insurer's insured losses.
            (3) Treatment of participation in certain entities.--Any 
        participating insurer that participates in sharing profits and 
        losses of a State residual market insurance entity shall 
        include in its calculations of premiums any premiums 
        distributed to the participating insurer by the State residual 
        market insurance entity.
    (e) Reinsurance for Insured Losses.--
            (1) Federal share of compensation.--
                    (A) In general.--The Federal share of compensation 
                under the Program to be paid by the Secretary for 
                insured losses of an participating insurer during each 
                calendar year shall be equal to 95 percent of that 
                portion of the amount of such insured losses that 
                exceeds the applicable insurer deductible required to 
                be paid during such calendar year.
                    (B) Program trigger.--In the case of a covered 
                public health emergency commencing after the date on 
                which the Secretary issues final regulations pursuant 
                to paragraph (2)(B)(ii), no compensation shall be paid 
                by the Secretary under subsection (a) unless the 
                aggregate industry insured losses for participating 
                insurers resulting from such covered public health 
                emergency exceed $250,000,000.
                    (C) Prohibition on duplicative compensation.--The 
                Federal share of compensation for insured losses under 
                the Program shall be reduced by the amount of 
                compensation provided by the Federal Government to any 
                person under any other Federal program for those 
                insured losses.
            (2) Cap on annual liability.--
                    (A) In general.--Notwithstanding paragraph (1) or 
                any other provision of Federal or State law, if the 
                aggregate insured losses exceed $750,000,000,000, 
                during a calendar year--
                            (i) the Secretary shall not make any 
                        payment under this Act for any portion of the 
                        amount of such losses that exceeds 
                        $750,000,000,000; and
                            (ii) no participating insurer that has met 
                        its insurer deductible shall be liable for the 
                        payment of any amounts under subparagraph (B).
                    (B) Insurer share.--
                            (i) In general.--For purposes of 
                        subparagraph (A), the Secretary shall determine 
                        the pro rata share of insured losses to be paid 
                        by each participating insurer that incurs 
                        insured losses under the Program, except that, 
                        notwithstanding paragraph (1) or any other 
                        provision of Federal or State law, no 
                        participating insurer may be required to make 
                        any payment for insured losses in excess of its 
                        deductible under section 3(8) combined with its 
                        share of insured losses under paragraph (1)(A) 
                        of this subsection.
                            (ii) Regulations.--Not later than 90 days 
                        after the date of enactment of this Act, the 
                        Secretary shall issue final regulations for 
                        determining the pro rata share of insured 
                        losses under the Program when insured losses 
                        exceed $750,000,000,000, in accordance with 
                        clause (i).
                            (iii) Report to congress.--Not later than 
                        120 days after the date of enactment of this 
                        Act, the Secretary shall provide a report to 
                        the Committee on Banking, Housing, and Urban 
                        Affairs of the Senate and the Committee on 
                        Financial Services of the House of 
                        Representatives describing the process to be 
                        used by the Secretary for determining the 
                        allocation of pro rata payments for insured 
                        losses under the Program when such losses 
                        exceed $750,000,000,000.
            (3) Notice to congress.--The Secretary shall notify the 
        Congress if estimated or actual aggregate insured losses exceed 
        $750,000,000,000 during any calendar year. The Secretary shall 
        provide an initial notice to Congress not later than 15 days 
        after the end of a covered public health emergency, stating 
        whether the Secretary estimates that aggregate insured losses 
        will exceed $750,000,000,000.
            (4) Final netting.--The Secretary shall have sole 
        discretion to determine the time at which claims relating to 
        any insured loss or covered public health emergency shall 
        become final.
            (5) Determinations final.--Any determination of the 
        Secretary under this subsection shall be final, unless 
        expressly provided, and shall not be subject to judicial 
        review.
    (f) Captive Insurers and Other Self-Insurance Arrangements.--The 
Secretary may, in consultation with the NAIC or the appropriate State 
regulatory authority, apply the provisions of this Act, as appropriate, 
to other classes or types of captive insurers and other self-insurance 
arrangements by municipalities and other entities (such as workers' 
compensation self-insurance programs and State workers' compensation 
reinsurance pools), but only if such application is determined before 
the commencement of a covered public health emergency in which such an 
entity incurs an insured loss and all of the provisions of this Act are 
applied comparably to such entities.
    (g) Reinsurance To Cover Exposure.--
            (1) Obtaining coverage.--This Act may not be construed to 
        limit or prevent insurers from obtaining reinsurance coverage 
        for insurer deductibles or insured losses retained by insurers 
        pursuant to this section, nor shall the obtaining of such 
        coverage affect the calculation of such deductibles.
            (2) Limitation on financial assistance.--The amount of 
        financial assistance provided pursuant to this section shall 
        not be reduced by reinsurance paid or payable to an insurer 
        from other sources, except that recoveries from such other 
        sources, taken together with financial assistance for the 
        calendar year provided pursuant to this section, may not exceed 
        the aggregate amount of the insurer's insured losses for the 
        calendar year. If such recoveries and financial assistance for 
        the calendar year exceed such aggregate amount of insured 
        losses for the calendar year and there is no agreement between 
        the insurer and any reinsurer to the contrary, an amount in 
        excess of such aggregate insured losses shall be returned to 
        the Secretary.

SEC. 5. GENERAL AUTHORITY AND ADMINISTRATION OF CLAIMS.

    (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 under the Program; 
        and
            (2) to prescribe regulations and procedures to effectively 
        administer and implement the Program, and to ensure that all 
        participating insurers and self-insured entities are treated 
        comparably under the Program.
    (b) Interim Rules and Procedures.--The Secretary may issue interim 
final rules or procedures specifying the manner in which--
            (1) insurers may file and certify claims under the Program;
            (2) the Federal share of compensation for insured losses 
        will be paid under the Program, including payments based on 
        estimates of or actual insured losses;
            (3) the Secretary may, at any time, seek repayment from or 
        reimburse any insurer, based on estimates of insured losses 
        under the Program, to effectuate the insured loss sharing 
        provisions in section 4; and
            (4) the Secretary will determine any final netting of 
        payments under the Program, including payments owed to the 
        Federal Government from any insurer and any Federal share of 
        compensation for insured losses owed to any insurer, to 
        effectuate the insured loss sharing provisions in section 4.
    (c) Consultation.--The Secretary shall consult with the NAIC, as 
the Secretary determines appropriate, concerning the Program.
    (d) Contracts for Services.--The Secretary may employ persons or 
contract for services as may be necessary to implement the Program.
    (e) Submission of Premium Information.--
            (1) In general.--The Secretary shall annually compile 
        information on the business interruption insurance premium 
        rates of insurers 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 NAIC 
        business interruption insurance premium rates, as necessary to 
        carry out paragraph (1), and the NAIC 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.
    (f) Reporting of Business Interruption Insurance Data.--
            (1) Authority.--Beginning upon the date of the enactment of 
        this Act, in each calendar year, the Secretary shall require 
        participating insurers to submit to the Secretary such 
        information regarding losses of such insurers, under insurance 
        coverage for business interruption, resulting from public 
        health emergencies as the Secretary considers appropriate to 
        analyze the effectiveness of the Program, which shall include 
        information regarding--
                    (A) lines of insurance with exposure to such 
                losses;
                    (B) premiums earned on such coverage;
                    (C) geographical location of exposures;
                    (D) pricing of such coverage;
                    (E) the take-up rate for such coverage;
                    (F) the amount of private reinsurance for losses 
                resulting from public health emergencies purchased; and
                    (G) such other matters as the Secretary considers 
                appropriate.
            (2) Reports.--Not later than one year after the date of the 
        enactment of this Act and annually thereafter, the Secretary 
        shall submit a report to the Committee on Financial Services of 
        the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate that includes--
                    (A) an analysis of the overall effectiveness of the 
                Program;
                    (B) an evaluation of the availability and 
                affordability of business interruption insurance for 
                losses resulting from public health emergencies;
                    (C) an evaluation of any changes or trends in the 
                data collected under paragraph (1);
                    (D) an evaluation of whether any aspects of the 
                Program have the effect of discouraging or impeding 
                insurers from providing business interruption insurance 
                coverage or coverage for public health emergencies;
                    (E) an evaluation of the impact of the Program on 
                workers' compensation insurers; and
                    (F) in the case of the data reported in paragraph 
                (1)(B), an updated estimate of the total amount earned 
                since the first January 1 occurring after the date of 
                the enactment of this Act.
            (3) Protection of data.--To the extent possible, the 
        Secretary shall contract with an insurance statistical 
        aggregator to collect the information described in paragraph 
        (1), which shall keep any nonpublic information confidential 
        and provide it to the Secretary in an aggregate form or in such 
        other form or manner that does not permit identification of the 
        insurer submitting such information.
            (4) Advance coordination.--Before collecting any data or 
        information under paragraph (1) from an insurer, or affiliate 
        of an insurer, the Secretary shall coordinate with the 
        appropriate State insurance regulatory authorities and any 
        relevant government agency or publicly available sources to 
        determine if the information to be collected is available from, 
        and may be obtained in a timely manner by, individually or 
        collectively, such entities. If the Secretary determines that 
        such data or information is available, and may be obtained in a 
        timely matter, from such entities, the Secretary shall obtain 
        the data or information from such entities. If the Secretary 
        determines that such data or information is not so available, 
        the Secretary may collect such data or information from an 
        insurer and affiliates.
            (5) Confidentiality.--
                    (A) Retention of privilege.--The submission of any 
                non-publicly available data and information to the 
                Secretary and the sharing of any non-publicly available 
                data with or by the Secretary among other Federal 
                agencies, the State insurance regulatory authorities, 
                or any other entities under this subsection shall not 
                constitute a waiver of, or otherwise affect, any 
                privilege arising under Federal or State law (including 
                the rules of any Federal or State court) to which the 
                data or information is otherwise subject.
                    (B) Continued application of prior confidentiality 
                agreements.--Any requirement under Federal or State law 
                to the extent otherwise applicable, or any requirement 
                pursuant to a written agreement in effect between the 
                original source of any non-publicly available data or 
                information and the source of such data or information 
                to the Secretary, regarding the privacy or 
                confidentiality of any data or information in the 
                possession of the source to the Secretary, shall 
                continue to apply to such data or information after the 
                data or information has been provided pursuant to this 
                subsection.
                    (C) Information-sharing agreement.--Any data or 
                information obtained by the Secretary under this 
                subsection may be made available to State insurance 
                regulatory authorities, individually or collectively, 
                through an information-sharing agreement that--
                            (i) shall comply with applicable Federal 
                        law; and
                            (ii) shall not constitute a waiver of, or 
                        otherwise affect, any privilege under Federal 
                        or State law (including any privilege referred 
                        to in subparagraph (A) and the rules of any 
                        Federal or State court) to which the data or 
                        information is otherwise subject.
                    (D) Agency disclosure requirements.--Section 552 of 
                title 5, United States Code, including any exceptions 
                thereunder, shall apply to any data or information 
                submitted under this subsection to the Secretary by an 
                insurer or affiliate of an insurer.

SEC. 6. PREEMPTION AND NULLIFICATION OF PRE-EXISTING EXCLUSIONS.

    (a) General Nullification.--Any exclusion in a contract of a 
participating insurer for business interruption insurance that is in 
force on the date of enactment of this Act shall be void to the extent 
that it excludes losses that would otherwise be insured losses under 
the Program.
    (b) General Preemption.--Any State approval of any exclusion from a 
contract of a participating insurer for business interruption insurance 
that is in force on the date of enactment of this Act, shall be void to 
the extent that it excludes losses that would otherwise be insured 
losses under the Program.
    (c) Reinstatement of Exclusions.--Notwithstanding subsections (a) 
and (b) or any provision of State law, a participating insurer may 
reinstate a preexisting provision in a contract for business 
interruption insurance that is in force on the date of enactment of 
this Act and that excludes coverage for loss resulting from a covered 
public health emergency only--
            (1) if the participating insurer has received a written 
        statement from the insured that affirmatively authorizes such 
        reinstatement; or
            (2) for contracts in effect for less than 5 months--
                    (A) the insured fails to pay any increased premium 
                charged by the participating insurer for providing such 
                coverage for covered public health emergencies, but 
                only if such premium does not increase by more than 15 
                percent; and
                    (B) the participating insurer provided notice, at 
                least 30 days before any such reinstatement, of--
                            (i) the increased premium for such covered 
                        public health emergency coverage; and
                            (ii) the rights of the insured with respect 
                        to such coverage, including any date upon which 
                        the exclusion would be reinstated if no payment 
                        is received.

SEC. 7. PRESERVATION PROVISIONS.

    (a) State Law.--Nothing in this Act shall affect the jurisdiction 
or regulatory authority of the insurance commissioner (or any agency or 
office performing like functions) of any State over any insurer or 
other person--
            (1) except as specifically provided in this Act; and
            (2) except that--
                    (A) the definition of the term ``covered public 
                health emergency'' in section 3 shall be the exclusive 
                definition of that term for purposes of compensation 
                for insured losses under this Act, and shall preempt 
                any provision of State law that is inconsistent with 
                that definition, to the extent that such provision of 
                law would otherwise apply to any type of insurance 
                covered by this Act;
                    (B) during the period beginning on the date of 
                enactment of this Act and ending on December 31, 2020, 
                rates and forms for business interruption insurance 
                covered by this Act and filed with any State shall not 
                be subject to prior approval or a waiting period under 
                any law of a State that would otherwise be applicable, 
                except that nothing in this Act affects the ability of 
                any State to invalidate a rate as excessive, 
                inadequate, or unfairly discriminatory, and, with 
                respect to forms, where a State has prior approval 
                authority, it shall apply to allow subsequent review of 
                such forms; and
                    (C) during the period beginning on the date of 
                enactment of this Act and for so long as the Program is 
                in effect, as provided in section 9, including 
                authority in subsection 208(b), books and records of 
                any insurer that are relevant to the Program shall be 
                provided, or caused to be provided, to the Secretary, 
                upon request by the Secretary, notwithstanding any 
                provision of the laws of any State prohibiting or 
                limiting such access.
    (b) Existing Reinsurance Agreements.--Nothing in this Act shall be 
construed to alter, amend, or expand the terms of coverage under any 
reinsurance agreement in effect on the date of enactment of this Act. 
The terms and conditions of such an agreement shall be determined by 
the language of that agreement.

SEC. 8. STUDY AND ANALYSES.

    (a) Study and Report on the Program.--
            (1) Study.--The Secretary, in consultation with the NAIC, 
        representatives of the insurance industry and of policy 
        holders, other experts in the insurance field, and other 
        experts as needed, shall assess the effectiveness of the 
        Program and the likely capacity of the property and casualty 
        insurance industry to offer insurance for risk of public health 
        emergencies after termination of the Program, and the 
        availability and affordability of such insurance for various 
        policyholders.
            (2) Report.--The Secretary shall submit a report to the 
        Congress on the results of the study conducted under paragraph 
        (1) not later than the expiration of the 12-month period 
        beginning on the date of the enactment of this Act.
    (b) Analysis of Market Conditions for Public Health Emergency Risk 
Insurance.--
            (1) In general.--The President's Working Group on Financial 
        Markets, in consultation with the National Association of 
        Insurance Commissioners, representatives of the insurance 
        industry, representatives of the securities industry, and 
        representatives of policy holders, shall perform an ongoing 
        analysis regarding the long-term availability and affordability 
        of insurance for risk of public health emergencies.
            (2) Report.--Not later than the expiration of the 12-month 
        period beginning on the date of the enactment of this Act and 
        every two years thereafter, the President's Working Group on 
        Financial Markets shall submit a report to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        on its findings pursuant to the analysis conducted under 
        paragraph (1).
    (c) Availability and Affordability of Business Interruption 
Insurance in Specific Markets.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study to determine whether there are specific 
        markets in the United States where there are unique capacity 
        constraints on the amount of business interruption insurance 
        available.
            (2) Elements of study.--The study required by paragraph (1) 
        shall contain--
                    (A) an analysis of both insurance and reinsurance 
                capacity in specific markets, including pricing and 
                coverage limits in existing policies;
                    (B) an assessment of the factors contributing to 
                any capacity constraints that are identified; and
                    (C) recommendations for addressing those capacity 
                constraints.
            (3) Report.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General shall submit a 
        report on the study required by paragraph (1) to the Committee 
        on Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives.
    (d) Study of Small Insurer Market Competitiveness.--
            (1) In general.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this Act 
        and every two years thereafter, the Secretary shall conduct a 
        study of small insurers (as such term is defined by regulation 
        by the Secretary) participating in the Program, and identify 
        any competitive challenges small insurers face in the business 
        interruption insurance marketplace, including--
                    (A) changes to the market share, premium volume, 
                and policyholder surplus of small insurers relative to 
                large insurers;
                    (B) how the business interruption insurance market 
                for risk of public health emergencies differs between 
                small and large insurers, and whether such a difference 
                exists within other perils;
                    (C) the impact of the Program's availability on 
                small insurers;
                    (D) the effect of increasing the trigger amount for 
                the Program under section 4(e)(1)(B) on small insurers;
                    (E) the availability and cost of private 
                reinsurance for small insurers; and
                    (F) the impact that State workers compensation laws 
                have on small insurers and workers compensation 
                carriers in the business interruption insurance 
                marketplace.
            (2) Report.--The Secretary shall submit a report to the 
        Congress setting forth the findings and conclusions of each 
        study required under paragraph (1).

SEC. 9. TERMINATION OF PROGRAM.

    (a) Termination.--The Program shall terminate on December 31, 2027.
    (b) Continuing Authority To Pay or Adjust Compensation.--Following 
the termination of the Program, the Secretary may take such actions as 
may be necessary to ensure payment, recoupment, reimbursement, or 
adjustment of compensation for insured losses arising out of any 
covered public health emergency occurring during the period in which 
the Program was in effect under this Act, in accordance with the 
provisions of section 4 and regulations promulgated thereunder.
    (c) Repeal; Savings Clause.--This Act is repealed on the final 
termination date of the Program under subsection (a), except that such 
repeal shall not be construed--
            (1) to prevent the Secretary from taking, or causing to be 
        taken, such actions under subsection (b) of this section, 
        paragraph (4) or (5) of section 4(e), or subsection (a)(1), 
        (c), (d), or (e) of section 5, as in effect on the day before 
        the date of such repeal, or applicable regulations promulgated 
        thereunder, during any period in which the authority of the 
        Secretary under subsection (b) of this section is in effect; or
            (2) to prevent the availability of funding under section 4 
        during any period in which the authority of the Secretary under 
        subsection (b) of this section is in effect.
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