[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5823 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 5823
To establish a Pandemic Risk Reinsurance Program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 2, 2021
Mrs. Carolyn B. Maloney of New York (for herself, Mr. Danny K. Davis of
Illinois, Mr. Green of Texas, Ms. Jackson Lee, Mr. Meeks, Ms. Meng, Mr.
Morelle, Ms. Norton, Miss Rice of New York, and Ms. Titus) 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
2021''.
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 property and casualty insurance losses resulting from
a pandemic or outbreak of communicable or infectious disease, in order
to--
(1) protect consumers by addressing market disruptions and
ensure the continued widespread availability and affordability
of property and casualty insurance for losses resulting from a
pandemic or outbreak of communicable or infectious 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 the Secretary of Health and
Human Services determines, or renews or extends
a determination that, a public health emergency
exists under section 319 of the Public Health
Service Act (42 U.S.C. 247d) due to a
significant outbreak of infectious disease; and
(ii) that is certified by the Secretary as
a covered public health emergency for purposes
of this Act.
(B) Nondelegation.--The Secretary may not delegate
or designate to any other officer, employee, or person,
any certification under subparagraph (A)(ii) of
whether, during the effective period of the Program, a
covered public health emergency exists.
(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, other non-property contingent
business interruption insurance, provided or made available for
losses resulting from periods of suspended business operations,
including losses resulting 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) Commercial property insurance.--The term ``commercial
property insurance'' means property insurance which indemnifies
an owner or user of property at a fixed location or premises
for loss or damage or loss of income-producing ability of the
property, but the term does not include inland marine, transit,
or personal lines insurance.
(5) 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 January 1, 2021, 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).
(6) Department.--The term ``Department'' means the
Department of the Treasury.
(7) Economic recovery period.--
(A) In general.--The term ``economic recovery
period'' means the period beginning with the date of
enactment of this Act and ending on December 31 of the
fifth year following enactment.
(B) Reset.--If during the economic recovery period,
a covered public health emergency is certified which
applies to the whole of the country or to States
comprising at least 40 percent of the country's
population, the economic recovery period will be
extended until December 31 of the 5th year following
such certification.
(8) Event.--The term ``event'' means a trade show, consumer
show, exhibition, fair, conference, convention, meeting,
seminar, charity event, auction, gala dinner, competition,
sporting event, film or television production, award show, or
other similar event or production.
(9) Event cancellation insurance.--The term ``event
cancellation insurance'' means insurance, including production
package insurance, that indemnifies an insured for losses that
occur as a consequence of--
(A) cancellation, abandonment, delay, or
rescheduling (whether full or partial) of an event; or
(B) non-appearance at an event of a principal
speaker or performer or unavailability of an essential
element, including covered key talent or cast members,
required for achievement of the event's purpose.
(10) Insured loss.--The term insured loss means any loss
resulting from an outbreak of infectious disease or pandemic
for which a covered public health emergency is certified that
is covered by primary or excess property and casualty insurance
issued by an 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.
(11) 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).
(12) NAIC.--The term ``NAIC'' means the National
Association of Insurance Commissioners.
(13) Parametric insurance facility.--The term ``parametric
insurance facility'' means a non-assessable joint underwriting
association or pool which has been approved by the Secretary to
provide parametric non-damage business interruption insurance
for purpose of Section 4(c)(2)(B).
(14) Parametric non-damage business interruption
insurance.--The term ``parametric non-damage business
interruption insurance'' means insurance that compensates the
insured for a portion of 180 days' fixed costs and payroll, as
more specifically provided by regulations issued by the
Secretary, which is triggered irrespective of physical status
or condition of the insured physical location and without need
for specific proof of loss upon the following conditions--
(A) a certification of covered public health
emergency; and
(B) the State or local government in which the
insured operates has issued a closure order applicable
to organizations with the policyholder's NAICS code.
(15) Participating insurer.--The term ``participating
insurer'' means, with respect to a calendar year, an insurer
that has elected pursuant to section 4(c)(2)(B) to participate
in the parametric insurance facility under this Act for such
calendar year.
(16) 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.
(17) Program.--The term ``Program'' means the Pandemic Risk
Reinsurance Program established by this Act.
(18) 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, business interruption
insurance, commercial general liability insurance,
directors and officers liability 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) health or life insurance, including
group life insurance;
(v) flood insurance provided under the
National Flood Insurance Act of 1968 (42 U.S.C.
4001 et seq.);
(vi) reinsurance or retrocessional
reinsurance;
(vii) commercial automobile insurance;
(viii) burglary and theft insurance; or
(ix) surety insurance.
(19) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(20) 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.
(21) United states.--The term ``United States'' means the
several States.
(22) 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) Mandatory participation.--Each entity that meets the
definition of an insurer under this Act shall participate in
the Program.
(4) Treatment of existing policies.--Except as provided
under section 6, this Act may not be construed to affect any
policy for property and casualty 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 an insurer, unless--
(1) except in the case of a parametric non-damage business
interruption insured loss, the person that suffers the insured
loss, or a person acting on behalf of that person, files a
claim with the insurer;
(2) the 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) the insurer processes the claim for the insured loss in
accordance with appropriate business practices, and any
reasonable procedures that the Secretary may prescribe; and
(4) the 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.--
(1) In general.--During each calendar year, each entity
that meets the definition of an insurer under this Act--
(A) shall make available, in all of its property
and casualty insurance policies, coverage for insured
losses; and
(B) shall make available property and casualty
insurance coverage for insured losses that does not
differ materially from the terms, conditions, amounts,
limits, deductibles, or self-insured retentions and
other coverage limitations applicable to losses arising
from events other than public health emergencies.
(2) Parametric non-damage business interruption insurance
coverage.--
(A) In general.--During each calendar year, each
entity that meets the definition of an insurer under
this Act shall in addition make available, in all its
commercial property insurance policies, parametric non-
damage business interruption insurance coverage for
insured losses.
(B) Alternatives.--An insurer subject to the
requirement in subparagraph (A) may satisfy the
requirement by arranging for the parametric non-damage
business interruption insurance coverage to be made
available to the insured by either--
(i) an affiliate of the insurer; or
(ii) a parametric insurance facility in
which the insurer participates.
(C) Criteria.--The Secretary shall issue
regulations, as soon as practicable after the date of
enactment of this Act, that establish eligibility
criteria and other standards for parametric insurance
facilities. In general--
(i) such facilities may be established and
governed subject to supervision by the
insurance commissioner of the domiciliary State
and if qualified by the Secretary will be
permitted to provided coverage in all States;
(ii) insurer capital contribution to a
facility may be in the form of surplus note or
similar instrument which may bear a coupon but
subject to all policyholder claims; and
(iii) a facility may, subject to regulatory
approval and any limitations in the Secretary's
regulations, distribute profits beginning after
the expiration of the economic recovery period.
(3) Supplemental business interruption coverage.--Nothing
in this section shall be construed to prohibit or limit the
ability of an insurer to provide supplemental business
interruption insurance coverage in addition to the coverage
made available under paragraph (2).
(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
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
insurer by the State residual market insurance entity.
(e) Reinsurance for Insured Losses.--
(1) Federal share of compensation.--
(A) Quota share protection.--In general, the
Federal share of compensation under the Program to be
paid by the Secretary for insured losses of an insurer
or a parametric insurance facility during each calendar
year shall, on a quota share basis, be equal to 95
percent of such insured losses.
(B) Stop-loss protection.--In addition to the quota
share reinsurance provided under subparagraph (A), the
Secretary may, upon application by an insurer or
parametric insurance facility, provide such insurer or
facility with stop-loss protection for insured losses,
for such price and on such other terms and conditions
as the Secretary deems consistent with the purposes of
the Act. In general, such stop loss protection shall
not have an attachment point lower than provided in any
catastrophe excess of loss reinsurance program which
the insurer or facility has in effect for the same
period.
(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 or facilities from obtaining
reinsurance coverage for insured losses retained by insurers or
facilities 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.
(h) Premiums for Quota Share Reinsurance Protection.--
(1) Economic recovery period.--During the economic recovery
period, including any reset extension, no premium will be
charged to insurers or parametric insurance facilities for the
Federal quota share reinsurance protection provided by the
Program under subsection (e)(1)(A).
(2) Thereafter.--Commencing with the expiration of the
economic recovery period, the Secretary shall be authorized to
prescribe a rating plan for the quota share reinsurance
provided by the Program under subsection (e)(1)(A) for both the
parametric non-damage business interruption insurance and for
other lines of property and casualty insurance. The rating plan
shall be designed to encourage broad participation in the
coverage made available under the Program, and in particular
shall be designed to recover the cost of the reinsurance
program over a period of not less than 5 years.
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 property and casualty 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
property and casualty 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 Property and Casualty Insurance Data.--
(1) Authority.--Beginning upon the date of the enactment of
this Act, in each calendar year, the Secretary shall require
insurers to submit to the Secretary such information regarding
losses of such insurers resulting from covered 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 covered 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 property and casualty 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 property and casualty 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.
(g) Funding.--
(1) Federal payments.--There are hereby appropriated, out
of funds in the Treasury not otherwise appropriated, such sums
as may be necessary to pay the Federal share of compensation
for insured losses under the Program.
(2) Administrative expenses.--There are hereby
appropriated, out of funds in the Treasury not otherwise
appropriated, such sums as may be necessary to pay reasonable
costs of administering the Program.
SEC. 6. PREEMPTION AND NULLIFICATION OF PRE-EXISTING EXCLUSIONS.
(a) General Nullification.--Any exclusion in a contract of an
insurer for property and casualty 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 an insurer for property and casualty 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, an insurer may reinstate a
preexisting provision in a contract for property and casualty 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 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 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 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, 2021,
rates and forms for property and casualty 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, 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 Property and Casualty
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 property and casualty 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 property
and casualty insurance marketplace, including--
(A) changes to the market share, premium volume,
and policyholder surplus of small insurers relative to
large insurers;
(B) how the property and casualty 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 availability and cost of private
reinsurance for small insurers; and
(E) the impact that State workers compensation laws
have on small insurers and workers compensation
carriers in the property and casualty 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, 2031.
(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.--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
5(g) during any period in which the authority of the Secretary
under subsection (b) of this section is in effect.
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