I 

116TH CONGRESS 

2D SESSION H. R. 7011 

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

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Pandemic Risk Insur5 ance Act of 2020’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is to establish a Federal pro8 gram that provides for a transparent system of shared 


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1 public and private compensation for business interruption 

2 losses resulting from a pandemic or outbreak of commu3 nicable disease, in order to— 

4 (1) protect consumers by addressing market 

5 disruptions and ensure the continued widespread 

6 availability and affordability of business interruption 

7 coverage for losses resulting from a pandemic or 

8 outbreak of communicative disease; and 

9 (2) allow for a transitional period for the pri10 vate markets to stabilize, resume pricing of such in11 surance, and build capacity to absorb any future 

12 losses, while preserving State insurance regulation 

13 and consumer protections. 

14 SEC. 3. DEFINITIONS. 

15 In this Act, the following definitions shall apply: 

16 (1) COVERED PUBLIC HEALTH EMERGENCY.— 

17 (A) IN GENERAL.—The term ‘‘covered 

18 public health emergency’’ means any outbreak 

19 of infectious disease or pandemic— 

20 (i) for which an emergency is de21 clared, on or after January 1, 2021, under 

22 the Public Health Service Act; and 

23 (ii) that is certified by the Secretary 

24 of Health and Human Services, as a public 

25 health emergency. 


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1 (B) NONDELEGATION.—The Secretary 

2 may not delegate or designate to any other offi3 cer, employee, or person, any determination 

4 under this paragraph of whether, during the ef5 fective period of the Program, a covered public 

6 health emergency has occurred. 

7 (2) AFFILIATE.—The term ‘‘affiliate’’ means, 

8 with respect to an participating insurer, any entity 

9 that controls, is controlled by, or is under common 

10 control with the insurer. 

11 (3) BUSINESS INTERRUPTION INSURANCE.— 

12 The term ‘‘business interruption insurance’’ means 

13 commercial lines of property and casualty insurance 

14 coverage, including event cancellation insurance or 

15 other non-property contingent business interruption 

16 insurance, provided or made available for losses re17 sulting from periods of suspended business oper18 ations, including losses from a covered public health 

19 emergency, or a civil order related to a covered pub20 lic health emergency, whether provided under broad21 er coverage for property and casualty losses or sepa22 rately. 

23 (4) CONTROL.— 

24 (A) IN GENERAL.—An entity has ‘‘control’’ 

25 over another entity, if— 


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1 (i) the entity directly or indirectly or 

2 acting through 1 or more other persons 

3 owns, controls, or has power to vote 25 

4 percent or more of any class of voting se5 curities of the other entity; 

6 (ii) the entity controls in any manner 

7 the election of a majority of the directors 

8 or trustees of the other entity; or 

9 (iii) the Secretary determines, after 

10 notice and opportunity for hearing, that 

11 the entity directly or indirectly exercises a 

12 controlling influence over the management 

13 or policies of the other entity. 

14 (B) RULE OF CONSTRUCTION.—An entity, 

15 including any affiliate thereof, does not have 

16 ‘‘control’’ over another entity, if, as of January 

17 1, 2021, the entity is acting as an attorney-in18 fact, as defined by the Secretary, for the other 

19 entity and such other entity is a reciprocal in20 surer, provided that the entity is not, for rea21 sons other than the attorney-in-fact relation22 ship, defined as having ‘‘control’’ under sub23 paragraph (A). 

24 (5) DIRECT EARNED PREMIUM.—The term ‘‘di25 rect earned premium’’ means a direct earned preVerDate Sep 11 2014 18:55 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7011.IH H7011

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1 mium for property and casualty insurance issued by 

2 any participating insurer for insurance against 

3 losses occurring in the United States. 

4 (6) EVENT.—The term ‘‘event’’ means a trade 

5 show, consumer show, exhibition, fair, conference, 

6 convention, meeting, seminar, charity event, auction, 

7 gala dinner, competition, sporting event, film or tele8 vision production, award show, or other similar 

9 event. 

10 (7) EVENT CANCELLATION INSURANCE.—The 

11 term ‘‘event cancellation insurance’’ means insur12 ance that indemnifies an insured for losses that 

13 occur as a consequence of— 

14 (A) cancellation, abandonment, or resched15 uling of an event; or 

16 (B) non-appearance at an event of a prin17 cipal speaker. 

18 (8) INSURED LOSS.—The term ‘‘insured loss’’ 

19 means any loss resulting from a covered public 

20 health emergency that is covered by primary or ex21 cess business interruption insurance issued by a par22 ticipating insurer if such loss occurs— 

23 (A) within the United States; and 


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1 (B) during the period that the covered 

2 public health emergency for such area is in ef3 fect. 

4 (9) INSURER.—The term ‘‘insurer’’ means any 

5 entity, including any affiliate thereof— 

6 (A) that is— 

7 (i) licensed or admitted to engage in 

8 the business of providing primary or excess 

9 insurance in any State; 

10 (ii) not licensed or admitted as de11 scribed in clause (i), if it is an eligible sur12 plus line carrier listed on the Quarterly 

13 Listing of Alien Insurers of the NAIC, or 

14 any successor thereto; 

15 (iii) approved for the purpose of offer16 ing property and casualty insurance by a 

17 Federal agency in connection with mari18 time, energy, or aviation activity; 

19 (iv) a State residual market insurance 

20 entity or State workers’ compensation 

21 fund; or 

22 (v) any other entity described in sec23 tion 4(f), to the extent provided in the 

24 rules of the Secretary issued under section 

25 4(f); 


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1 (B) that receives direct earned premiums 

2 for any type of commercial property and cas3 ualty insurance coverage, other than in the case 

4 of entities described in subsections (d) and (f) 

5 of section 4; and 

6 (C) that meets any other criteria that the 

7 Secretary may reasonably prescribe. 

8 Such term includes captive insurers and other self9 insurance arrangements by municipalities and other 

10 entities (such as workers’ compensation self-insur11 ance programs and State workers’ compensation re12 insurance pools). 

13 (10) INSURER DEDUCTIBLE.—The term ‘‘in14 surer deductible’’ means, with respect to a partici15 pating insurer— 

16 (A) the value of the participating insurer’s 

17 direct earned premiums during the immediately 

18 preceding calendar year, multiplied by 5 per19 cent; and 

20 (B) notwithstanding subparagraph (A), for 

21 any calendar year, if a participating insurer has 

22 not had a full year of operations during the cal23 endar year immediately preceding such calendar 

24 year, such portion of the direct earned pre25 miums of the participating insurer as the SecVerDate Sep 11 2014 18:55 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7011.IH H7011

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1 retary determines appropriate, subject to appro2 priate methodologies established by the Sec3 retary for measuring such direct earned pre4 miums. 

5 (11) NAIC.—The term ‘‘NAIC’’ means the Na6 tional Association of Insurance Commissioners. 

7 (12) PARTICIPATING INSURER.—The term 

8 ‘‘participating insurer’’ means, with respect to a cal9 endar year, an insurer that has elected pursuant to 

10 section 4(a)(3) to participate in the Pandemic Risk 

11 Reinsurance Program under this Act for such cal12 endar year. 

13 (13) PERSON.—The term ‘‘person’’ means any 

14 individual, business or nonprofit entity (including 

15 those organized in the form of a partnership, limited 

16 liability company, corporation, or association), trust 

17 or estate, or a State or political subdivision of a 

18 State or other governmental unit. 

19 (14) PROGRAM.—The term ‘‘Program’’ means 

20 the Pandemic Risk Reinsurance Program established 

21 by this Act. 

22 (15) PROPERTY AND CASUALTY INSURANCE.— 

23 The term ‘‘property and casualty insurance’’— 

24 (A) means commercial lines of property 

25 and casualty insurance, including excess insurVerDate Sep 11 2014 18:55 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7011.IH H7011

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1 ance, workers’ compensation insurance, and 

2 event cancellation insurance; and 

3 (B) does not include— 

4 (i) Federal crop insurance issued or 

5 reinsured under the Federal Crop Insur6 ance Act (7 U.S.C. 1501 et seq.), or any 

7 other type of crop or livestock insurance 

8 that is privately issued or reinsured; 

9 (ii) private mortgage insurance (as 

10 such term is defined in section 2 of the 

11 Homeowners Protection Act of 1998 (12 

12 U.S.C. 4901)) or title insurance; 

13 (iii) financial guaranty insurance 

14 issued by monoline financial guaranty in15 surance corporations; 

16 (iv) insurance for medical malpractice; 

17 (v) health or life insurance, including 

18 group life insurance; 

19 (vi) flood insurance provided under 

20 the National Flood Insurance Act of 1968 

21 (42 U.S.C. 4001 et seq.); 

22 (vii) reinsurance or retrocessional re23 insurance; 

24 (viii) commercial automobile insur25 ance; 


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1 (ix) burglary and theft insurance; 

2 (x) surety insurance; 

3 (xi) professional liability insurance; or 

4 (xii) farm owners multiple peril insur5 ance. 

6 (16) SECRETARY.—The term ‘‘Secretary’’ 

7 means the Secretary of the Treasury. 

8 (17) STATE.—The term ‘‘State’’ means any 

9 State of the United States, the District of Columbia, 

10 the Commonwealth of Puerto Rico, the Common11 wealth of the Northern Mariana Islands, American 

12 Samoa, Guam, each of the United States Virgin Is13 lands, and any territory or possession of the United 

14 States. 

15 (18) UNITED STATES.—The term ‘‘United 

16 States’’ means the several States. 

17 (19) RULE OF CONSTRUCTION FOR DATES.— 

18 With respect to any reference to a date in this Act, 

19 such day shall be construed— 

20 (A) to begin at 12:01 a.m. on that date; 

21 and 

22 (B) to end at midnight on that date. 

23 SEC. 4. PANDEMIC RISK REINSURANCE PROGRAM. 

24 (a) ESTABLISHMENT OF PROGRAM.— 


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1 (1) IN GENERAL.—There is established in the 

2 Department of the Treasury the Pandemic Risk Re3 insurance Program. 

4 (2) AUTHORITY OF THE SECRETARY.—Notwith5 standing any other provision of State or Federal 

6 law, the Secretary shall administer the Program, 

7 and shall pay the Federal share of compensation for 

8 insured losses in accordance with subsection (e). 

9 (3) VOLUNTARY PARTICIPATION.— 

10 (A) ELIGIBILITY.—Each entity that meets 

11 the definition of an insurer under this Act may 

12 participate in the Program. 

13 (B) ELECTION.—The Secretary shall pro14 vide a process by which insurers may elect to 

15 participate in the Program, with respect to a 

16 calendar year. 

17 (4) TREATMENT OF EXISTING POLICIES.—This 

18 Act may not be construed to affect any policy for 

19 business interruption insurance in force on the date 

20 of the enactment of this Act. 

21 (b) CONDITIONS FOR FEDERAL PAYMENTS.—No 

22 payment may be made by the Secretary under this section 

23 with respect to an insured loss that is covered by a partici24 pating insurer, unless— 


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1 (1) the person that suffers the insured loss, or 

2 a person acting on behalf of that person, files a 

3 claim with the participating insurer; 

4 (2) the participating insurer provides clear and 

5 conspicuous disclosure to the policyholder of the pre6 mium charged for insured losses covered by the Pro7 gram and the Federal share of compensation for in8 sured losses under the Program— 

9 (A) in the case of any policy that is issued 

10 before the date of enactment of this Act, not 

11 later than 90 days after that date of enactment; 

12 (B) in the case of any policy that is issued 

13 within 90 days of the date of enactment of this 

14 Act, at the time of offer and renewal of the pol15 icy; and 

16 (C) in the case of any policy that is issued 

17 more than 90 days after the date of enactment 

18 of this Act, on a separate line item in the pol19 icy, at the time of offer and renewal of the pol20 icy; 

21 (3) in the case of any policy that is issued after 

22 the date of enactment of this Act, the participating 

23 insurer provides clear and conspicuous disclosure to 

24 the policyholder of the existence of the 

25 $750,000,000,000 cap under subsection (e)(2), at 


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1 the time of offer, purchase, and renewal of the pol2 icy; 

3 (4) the participating insurer processes the claim 

4 for the insured loss in accordance with appropriate 

5 business practices, and any reasonable procedures 

6 that the Secretary may prescribe; and 

7 (5) the participating insurer submits to the Sec8 retary, in accordance with such reasonable proce9 dures as the Secretary may establish— 

10 (A) a claim for payment of the Federal 

11 share of compensation for insured losses under 

12 the Program; 

13 (B) written certification— 

14 (i) of the underlying claim; and 

15 (ii) of all payments made for insured 

16 losses; and 

17 (C) certification of its compliance with the 

18 provisions of this subsection. 

19 (c) MANDATORY AVAILABILITY OF COVERAGE FOR

20 COVERED PUBLIC HEALTH EMERGENCIES UNDER BUSI21 NESS INTERRUPTION COVERAGE.—During each calendar 

22 year, each participating insurer shall, with respect to such 

23 year— 


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1 (1) make available, in all of its business inter2 ruption insurance policies, coverage for insured 

3 losses; and 

4 (2) make available business interruption insur5 ance coverage for insured losses that does not differ 

6 materially from the terms, conditions, amounts, lim7 its, deductibles, or self-insured retentions and other 

8 coverage grants, limitations, and exclusions applica9 ble to losses arising from events other than public 

10 health emergencies. 

11 (d) STATE RESIDUAL MARKET INSURANCE ENTI12 TIES.— 

13 (1) IN GENERAL.—The Secretary shall issue 

14 regulations, as soon as practicable after the date of 

15 enactment of this Act, that apply the provisions of 

16 this Act to State residual market insurance entities 

17 and State workers’ compensation funds. 

18 (2) TREATMENT OF CERTAIN ENTITIES.—For 

19 purposes of the regulations issued pursuant to para20 graph (1)— 

21 (A) a State residual market insurance enti22 ty that does not share its profits and losses 

23 with private sector insurers shall be treated as 

24 a separate insurer; and 


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1 (B) a State residual market insurance enti2 ty that shares its profits and losses with private 

3 sector insurers shall not be treated as a sepa4 rate insurer, and shall report to each private 

5 sector insurance participant its share of the in6 sured losses of the entity, which shall be in7 cluded in each private sector participating in8 surer’s insured losses. 

9 (3) TREATMENT OF PARTICIPATION IN CERTAIN

10 ENTITIES.—Any participating insurer that partici11 pates in sharing profits and losses of a State resid12 ual market insurance entity shall include in its cal13 culations of premiums any premiums distributed to 

14 the participating insurer by the State residual mar15 ket insurance entity. 

16 (e) REINSURANCE FOR INSURED LOSSES.— 

17 (1) FEDERAL SHARE OF COMPENSATION.— 

18 (A) IN GENERAL.—The Federal share of 

19 compensation under the Program to be paid by 

20 the Secretary for insured losses of an partici21 pating insurer during each calendar year shall 

22 be equal to 95 percent of that portion of the 

23 amount of such insured losses that exceeds the 

24 applicable insurer deductible required to be paid 

25 during such calendar year. 


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1 (B) PROGRAM TRIGGER.—In the case of a 

2 covered public health emergency commencing 

3 after the date on which the Secretary issues 

4 final regulations pursuant to paragraph 

5 (2)(B)(ii), no compensation shall be paid by the 

6 Secretary under subsection (a) unless the ag7 gregate industry insured losses for participating 

8 insurers resulting from such covered public 

9 health emergency exceed $250,000,000. 

10 (C) PROHIBITION ON DUPLICATIVE COM11 PENSATION.—The Federal share of compensa12 tion for insured losses under the Program shall 

13 be reduced by the amount of compensation pro14 vided by the Federal Government to any person 

15 under any other Federal program for those in16 sured losses. 

17 (2) CAP ON ANNUAL LIABILITY.— 

18 (A) IN GENERAL.—Notwithstanding para19 graph (1) or any other provision of Federal or 

20 State law, if the aggregate insured losses exceed 

21 $750,000,000,000, during a calendar year— 

22 (i) the Secretary shall not make any 

23 payment under this Act for any portion of 

24 the amount of such losses that exceeds 

25 $750,000,000,000; and 


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1 (ii) no participating insurer that has 

2 met its insurer deductible shall be liable 

3 for the payment of any amounts under 

4 subparagraph (B). 

5 (B) INSURER SHARE.— 

6 (i) IN GENERAL.—For purposes of 

7 subparagraph (A), the Secretary shall de8 termine the pro rata share of insured 

9 losses to be paid by each participating in10 surer that incurs insured losses under the 

11 Program, except that, notwithstanding 

12 paragraph (1) or any other provision of 

13 Federal or State law, no participating in14 surer may be required to make any pay15 ment for insured losses in excess of its de16 ductible under section 3(8) combined with 

17 its share of insured losses under paragraph 

18 (1)(A) of this subsection. 

19 (ii) REGULATIONS.—Not later than 

20 90 days after the date of enactment of this 

21 Act, the Secretary shall issue final regula22 tions for determining the pro rata share of 

23 insured losses under the Program when in24 sured losses exceed $750,000,000,000, in 

25 accordance with clause (i). 


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1 (iii) REPORT TO CONGRESS.—Not 

2 later than 120 days after the date of en3 actment of this Act, the Secretary shall 

4 provide a report to the Committee on 

5 Banking, Housing, and Urban Affairs of 

6 the Senate and the Committee on Finan7 cial Services of the House of Representa8 tives describing the process to be used by 

9 the Secretary for determining the alloca10 tion of pro rata payments for insured 

11 losses under the Program when such losses 

12 exceed $750,000,000,000. 

13 (3) NOTICE TO CONGRESS.—The Secretary 

14 shall notify the Congress if estimated or actual ag15 gregate insured losses exceed $750,000,000,000 dur16 ing any calendar year. The Secretary shall provide 

17 an initial notice to Congress not later than 15 days 

18 after the end of a covered public health emergency, 

19 stating whether the Secretary estimates that aggre20 gate insured losses will exceed $750,000,000,000. 

21 (4) FINAL NETTING.—The Secretary shall have 

22 sole discretion to determine the time at which claims 

23 relating to any insured loss or covered public health 

24 emergency shall become final. 


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1 (5) DETERMINATIONS FINAL.—Any determina2 tion of the Secretary under this subsection shall be 

3 final, unless expressly provided, and shall not be 

4 subject to judicial review. 

5 (f) CAPTIVE INSURERS AND OTHER SELF-INSUR6 ANCE ARRANGEMENTS.—The Secretary may, in consulta7 tion with the NAIC or the appropriate State regulatory 

8 authority, apply the provisions of this Act, as appropriate, 

9 to other classes or types of captive insurers and other self10 insurance arrangements by municipalities and other enti11 ties (such as workers’ compensation self-insurance pro12 grams and State workers’ compensation reinsurance 

13 pools), but only if such application is determined before 

14 the commencement of a covered public health emergency 

15 in which such an entity incurs an insured loss and all of 

16 the provisions of this Act are applied comparably to such 

17 entities. 

18 (g) REINSURANCE TO COVER EXPOSURE.— 

19 (1) OBTAINING COVERAGE.—This Act may not 

20 be construed to limit or prevent insurers from ob21 taining reinsurance coverage for insurer deductibles 

22 or insured losses retained by insurers pursuant to 

23 this section, nor shall the obtaining of such coverage 

24 affect the calculation of such deductibles. 


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1 (2) LIMITATION ON FINANCIAL ASSISTANCE.— 

2 The amount of financial assistance provided pursu3 ant to this section shall not be reduced by reinsur4 ance paid or payable to an insurer from other 

5 sources, except that recoveries from such other 

6 sources, taken together with financial assistance for 

7 the calendar year provided pursuant to this section, 

8 may not exceed the aggregate amount of the insur9 er’s insured losses for the calendar year. If such re10 coveries and financial assistance for the calendar 

11 year exceed such aggregate amount of insured losses 

12 for the calendar year and there is no agreement be13 tween the insurer and any reinsurer to the contrary, 

14 an amount in excess of such aggregate insured 

15 losses shall be returned to the Secretary. 

16 SEC. 5. GENERAL AUTHORITY AND ADMINISTRATION OF 

17 CLAIMS. 

18 (a) GENERAL AUTHORITY.—The Secretary shall have 

19 the powers and authorities necessary to carry out the Pro20 gram, including authority— 

21 (1) to investigate and audit all claims under the 

22 Program; and 

23 (2) to prescribe regulations and procedures to 

24 effectively administer and implement the Program, 

25 and to ensure that all participating insurers and 


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1 self-insured entities are treated comparably under 

2 the Program. 

3 (b) INTERIM RULES AND PROCEDURES.—The Sec4 retary may issue interim final rules or procedures speci5 fying the manner in which— 

6 (1) insurers may file and certify claims under 

7 the Program; 

8 (2) the Federal share of compensation for in9 sured losses will be paid under the Program, includ10 ing payments based on estimates of or actual in11 sured losses; 

12 (3) the Secretary may, at any time, seek repay13 ment from or reimburse any insurer, based on esti14 mates of insured losses under the Program, to effec15 tuate the insured loss sharing provisions in section 

16 4; and 

17 (4) the Secretary will determine any final net18 ting of payments under the Program, including pay19 ments owed to the Federal Government from any in20 surer and any Federal share of compensation for in21 sured losses owed to any insurer, to effectuate the 

22 insured loss sharing provisions in section 4. 

23 (c) CONSULTATION.—The Secretary shall consult 

24 with the NAIC, as the Secretary determines appropriate, 

25 concerning the Program. 


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1 (d) CONTRACTS FOR SERVICES.—The Secretary may 

2 employ persons or contract for services as may be nec3 essary to implement the Program. 

4 (e) SUBMISSION OF PREMIUM INFORMATION.— 

5 (1) IN GENERAL.—The Secretary shall annually 

6 compile information on the business interruption in7 surance premium rates of insurers for the preceding 

8 year. 

9 (2) ACCESS TO INFORMATION.—To the extent 

10 that such information is not otherwise available to 

11 the Secretary, the Secretary may require each in12 surer to submit to the NAIC business interruption 

13 insurance premium rates, as necessary to carry out 

14 paragraph (1), and the NAIC shall make such infor15 mation available to the Secretary. 

16 (3) AVAILABILITY TO CONGRESS.—The Sec17 retary shall make information compiled under this 

18 subsection available to the Congress, upon request. 

19 (f) REPORTING OF BUSINESS INTERRUPTION INSUR20 ANCE DATA.— 

21 (1) AUTHORITY.—Beginning upon the date of 

22 the enactment of this Act, in each calendar year, the 

23 Secretary shall require participating insurers to sub24 mit to the Secretary such information regarding 

25 losses of such insurers, under insurance coverage for 


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1 business interruption, resulting from public health 

2 emergencies as the Secretary considers appropriate 

3 to analyze the effectiveness of the Program, which 

4 shall include information regarding— 

5 (A) lines of insurance with exposure to 

6 such losses; 

7 (B) premiums earned on such coverage; 

8 (C) geographical location of exposures; 

9 (D) pricing of such coverage; 

10 (E) the take-up rate for such coverage; 

11 (F) the amount of private reinsurance for 

12 losses resulting from public health emergencies 

13 purchased; and 

14 (G) such other matters as the Secretary 

15 considers appropriate. 

16 (2) REPORTS.—Not later than one year after 

17 the date of the enactment of this Act and annually 

18 thereafter, the Secretary shall submit a report to the 

19 Committee on Financial Services of the House of 

20 Representatives and the Committee on Banking, 

21 Housing, and Urban Affairs of the Senate that in22 cludes— 

23 (A) an analysis of the overall effectiveness 

24 of the Program; 


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1 (B) an evaluation of the availability and 

2 affordability of business interruption insurance 

3 for losses resulting from public health emer4 gencies; 

5 (C) an evaluation of any changes or trends 

6 in the data collected under paragraph (1); 

7 (D) an evaluation of whether any aspects 

8 of the Program have the effect of discouraging 

9 or impeding insurers from providing business 

10 interruption insurance coverage or coverage for 

11 public health emergencies; 

12 (E) an evaluation of the impact of the Pro13 gram on workers’ compensation insurers; and 

14 (F) in the case of the data reported in 

15 paragraph (1)(B), an updated estimate of the 

16 total amount earned since the first January 1 

17 occurring after the date of the enactment of 

18 this Act. 

19 (3) PROTECTION OF DATA.—To the extent pos20 sible, the Secretary shall contract with an insurance 

21 statistical aggregator to collect the information de22 scribed in paragraph (1), which shall keep any non23 public information confidential and provide it to the 

24 Secretary in an aggregate form or in such other 


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1 form or manner that does not permit identification 

2 of the insurer submitting such information. 

3 (4) ADVANCE COORDINATION.—Before col4 lecting any data or information under paragraph (1) 

5 from an insurer, or affiliate of an insurer, the Sec6 retary shall coordinate with the appropriate State in7 surance regulatory authorities and any relevant gov8 ernment agency or publicly available sources to de9 termine if the information to be collected is available 

10 from, and may be obtained in a timely manner by, 

11 individually or collectively, such entities. If the Sec12 retary determines that such data or information is 

13 available, and may be obtained in a timely matter, 

14 from such entities, the Secretary shall obtain the 

15 data or information from such entities. If the Sec16 retary determines that such data or information is 

17 not so available, the Secretary may collect such data 

18 or information from an insurer and affiliates. 

19 (5) CONFIDENTIALITY.— 

20 (A) RETENTION OF PRIVILEGE.—The sub21 mission of any non-publicly available data and 

22 information to the Secretary and the sharing of 

23 any non-publicly available data with or by the 

24 Secretary among other Federal agencies, the 

25 State insurance regulatory authorities, or any 


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1 other entities under this subsection shall not 

2 constitute a waiver of, or otherwise affect, any 

3 privilege arising under Federal or State law (in4 cluding the rules of any Federal or State court) 

5 to which the data or information is otherwise 

6 subject. 

7 (B) CONTINUED APPLICATION OF PRIOR

8 CONFIDENTIALITY AGREEMENTS.—Any require9 ment under Federal or State law to the extent 

10 otherwise applicable, or any requirement pursu11 ant to a written agreement in effect between 

12 the original source of any non-publicly available 

13 data or information and the source of such data 

14 or information to the Secretary, regarding the 

15 privacy or confidentiality of any data or infor16 mation in the possession of the source to the 

17 Secretary, shall continue to apply to such data 

18 or information after the data or information 

19 has been provided pursuant to this subsection. 

20 (C) INFORMATION-SHARING AGREE21 MENT.—Any data or information obtained by 

22 the Secretary under this subsection may be 

23 made available to State insurance regulatory 

24 authorities, individually or collectively, through 

25 an information-sharing agreement that— 


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1 (i) shall comply with applicable Fed2 eral law; and 

3 (ii) shall not constitute a waiver of, or 

4 otherwise affect, any privilege under Fed5 eral or State law (including any privilege 

6 referred to in subparagraph (A) and the 

7 rules of any Federal or State court) to 

8 which the data or information is otherwise 

9 subject. 

10 (D) AGENCY DISCLOSURE REQUIRE11 MENTS.—Section 552 of title 5, United States 

12 Code, including any exceptions thereunder, shall 

13 apply to any data or information submitted 

14 under this subsection to the Secretary by an in15 surer or affiliate of an insurer. 

16 (g) FUNDING.— 

17 (1) FEDERAL PAYMENTS.—There are hereby 

18 appropriated, out of funds in the Treasury not oth19 erwise appropriated, such sums as may be necessary 

20 to pay the Federal share of compensation for in21 sured losses under the Program. 

22 (2) ADMINISTRATIVE EXPENSES.—There are 

23 hereby appropriated, out of funds in the Treasury 

24 not otherwise appropriated, such sums as may be 


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1 necessary to pay reasonable costs of administering 

2 the Program. 

3 SEC. 6. PREEMPTION AND NULLIFICATION OF PRE-EXIST4 ING EXCLUSIONS. 

5 (a) GENERAL NULLIFICATION.—Any exclusion in a 

6 contract of a participating insurer for business interrup7 tion insurance that is in force on the date of enactment 

8 of this Act shall be void to the extent that it excludes 

9 losses that would otherwise be insured losses under the 

10 Program. 

11 (b) GENERAL PREEMPTION.—Any State approval of 

12 any exclusion from a contract of a participating insurer 

13 for business interruption insurance that is in force on the 

14 date of enactment of this Act, shall be void to the extent 

15 that it excludes losses that would otherwise be insured 

16 losses under the Program. 

17 (c) REINSTATEMENT OF EXCLUSIONS.—Notwith18 standing subsections (a) and (b) or any provision of State 

19 law, a participating insurer may reinstate a preexisting 

20 provision in a contract for business interruption insurance 

21 that is in force on the date of enactment of this Act and 

22 that excludes coverage for loss resulting from a covered 

23 public health emergency only— 


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1 (1) if the participating insurer has received a 

2 written statement from the insured that affirma3 tively authorizes such reinstatement; or 

4 (2) for contracts in effect for less than 5 

5 months— 

6 (A) the insured fails to pay any increased 

7 premium charged by the participating insurer 

8 for providing such coverage for covered public 

9 health emergencies, but only if such premium 

10 does not increase by more than 15 percent; and 

11 (B) the participating insurer provided no12 tice, at least 30 days before any such reinstate13 ment, of— 

14 (i) the increased premium for such 

15 covered public health emergency coverage; 

16 and 

17 (ii) the rights of the insured with re18 spect to such coverage, including any date 

19 upon which the exclusion would be rein20 stated if no payment is received. 

21 SEC. 7. PRESERVATION PROVISIONS. 

22 (a) STATE LAW.—Nothing in this Act shall affect the 

23 jurisdiction or regulatory authority of the insurance com24 missioner (or any agency or office performing like func25 tions) of any State over any insurer or other person— 


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1 (1) except as specifically provided in this Act; 

2 and 

3 (2) except that— 

4 (A) the definition of the term ‘‘covered 

5 public health emergency’’ in section 3 shall be 

6 the exclusive definition of that term for pur7 poses of compensation for insured losses under 

8 this Act, and shall preempt any provision of 

9 State law that is inconsistent with that defini10 tion, to the extent that such provision of law 

11 would otherwise apply to any type of insurance 

12 covered by this Act; 

13 (B) during the period beginning on the 

14 date of enactment of this Act and ending on 

15 December 31, 2020, rates and forms for busi16 ness interruption insurance covered by this Act 

17 and filed with any State shall not be subject to 

18 prior approval or a waiting period under any 

19 law of a State that would otherwise be applica20 ble, except that nothing in this Act affects the 

21 ability of any State to invalidate a rate as ex22 cessive, inadequate, or unfairly discriminatory, 

23 and, with respect to forms, where a State has 

24 prior approval authority, it shall apply to allow 

25 subsequent review of such forms; and 


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1 (C) during the period beginning on the 

2 date of enactment of this Act and for so long 

3 as the Program is in effect, as provided in sec4 tion 9, including authority in subsection 208(b), 

5 books and records of any insurer that are rel6 evant to the Program shall be provided, or 

7 caused to be provided, to the Secretary, upon 

8 request by the Secretary, notwithstanding any 

9 provision of the laws of any State prohibiting or 

10 limiting such access. 

11 (b) EXISTING REINSURANCE AGREEMENTS.—Noth12 ing in this Act shall be construed to alter, amend, or ex13 pand the terms of coverage under any reinsurance agree14 ment in effect on the date of enactment of this Act. The 

15 terms and conditions of such an agreement shall be deter16 mined by the language of that agreement. 

17 SEC. 8. STUDY AND ANALYSES. 

18 (a) STUDY AND REPORT ON THE PROGRAM.— 

19 (1) STUDY.—The Secretary, in consultation 

20 with the NAIC, representatives of the insurance in21 dustry and of policy holders, other experts in the in22 surance field, and other experts as needed, shall as23 sess the effectiveness of the Program and the likely 

24 capacity of the property and casualty insurance in25 dustry to offer insurance for risk of public health 


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1 emergencies after termination of the Program, and 

2 the availability and affordability of such insurance 

3 for various policyholders. 

4 (2) REPORT.—The Secretary shall submit a re5 port to the Congress on the results of the study con6 ducted under paragraph (1) not later than the expi7 ration of the 12-month period beginning on the date 

8 of the enactment of this Act. 

9 (b) ANALYSIS OF MARKET CONDITIONS FOR PUBLIC

10 HEALTH EMERGENCY RISK INSURANCE.— 

11 (1) IN GENERAL.—The President’s Working 

12 Group on Financial Markets, in consultation with 

13 the National Association of Insurance Commis14 sioners, representatives of the insurance industry, 

15 representatives of the securities industry, and rep16 resentatives of policy holders, shall perform an ongo17 ing analysis regarding the long-term availability and 

18 affordability of insurance for risk of public health 

19 emergencies. 

20 (2) REPORT.—Not later than the expiration of 

21 the 12-month period beginning on the date of the 

22 enactment of this Act and every two years there23 after, the President’s Working Group on Financial 

24 Markets shall submit a report to the Committee on 

25 Banking, Housing, and Urban Affairs of the Senate 


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1 and the Committee on Financial Services of the 

2 House of Representatives on its findings pursuant to 

3 the analysis conducted under paragraph (1). 

4 (c) AVAILABILITY AND AFFORDABILITY OF BUSI5 NESS INTERRUPTION INSURANCE IN SPECIFIC MAR6 KETS.— 

7 (1) STUDY.—The Comptroller General of the 

8 United States shall conduct a study to determine 

9 whether there are specific markets in the United 

10 States where there are unique capacity constraints 

11 on the amount of business interruption insurance 

12 available. 

13 (2) ELEMENTS OF STUDY.—The study required 

14 by paragraph (1) shall contain— 

15 (A) an analysis of both insurance and rein16 surance capacity in specific markets, including 

17 pricing and coverage limits in existing policies; 

18 (B) an assessment of the factors contrib19 uting to any capacity constraints that are iden20 tified; and 

21 (C) recommendations for addressing those 

22 capacity constraints. 

23 (3) REPORT.—Not later than 180 days after 

24 the date of enactment of this Act, the Comptroller 

25 General shall submit a report on the study required 


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1 by paragraph (1) to the Committee on Banking, 

2 Housing, and Urban Affairs of the Senate and the 

3 Committee on Financial Services of the House of 

4 Representatives. 

5 (d) STUDY OF SMALL INSURER MARKET COMPETI6 TIVENESS.— 

7 (1) IN GENERAL.—Not later than the expira8 tion of the 12-month period beginning on the date 

9 of the enactment of this Act and every two years 

10 thereafter, the Secretary shall conduct a study of 

11 small insurers (as such term is defined by regulation 

12 by the Secretary) participating in the Program, and 

13 identify any competitive challenges small insurers 

14 face in the business interruption insurance market15 place, including— 

16 (A) changes to the market share, premium 

17 volume, and policyholder surplus of small insur18 ers relative to large insurers; 

19 (B) how the business interruption insur20 ance market for risk of public health emer21 gencies differs between small and large insur22 ers, and whether such a difference exists within 

23 other perils; 

24 (C) the impact of the Program’s avail25 ability on small insurers; 


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1 (D) the effect of increasing the trigger 

2 amount for the Program under section 

3 4(e)(1)(B) on small insurers; 

4 (E) the availability and cost of private re5 insurance for small insurers; and 

6 (F) the impact that State workers com7 pensation laws have on small insurers and 

8 workers compensation carriers in the business 

9 interruption insurance marketplace. 

10 (2) REPORT.—The Secretary shall submit a re11 port to the Congress setting forth the findings and 

12 conclusions of each study required under paragraph 

13 (1). 

14 SEC. 9. TERMINATION OF PROGRAM. 

15 (a) TERMINATION.—The Program shall terminate on 

16 December 31, 2027. 

17 (b) CONTINUING AUTHORITY TO PAY OR ADJUST

18 COMPENSATION.—Following the termination of the Pro19 gram, the Secretary may take such actions as may be nec20 essary to ensure payment, recoupment, reimbursement, or 

21 adjustment of compensation for insured losses arising out 

22 of any covered public health emergency occurring during 

23 the period in which the Program was in effect under this 

24 Act, in accordance with the provisions of section 4 and 

25 regulations promulgated thereunder. 


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1 (c) REPEAL; SAVINGS CLAUSE.—This Act is repealed 

2 on the final termination date of the Program under sub3 section (a), except that such repeal shall not be con4 strued— 

5 (1) to prevent the Secretary from taking, or 

6 causing to be taken, such actions under subsection 

7 (b) of this section, paragraph (4) or (5) of section 

8 4(e), or subsection (a)(1), (c), (d), or (e) of section 

9 5, as in effect on the day before the date of such re10 peal, or applicable regulations promulgated there11 under, during any period in which the authority of 

12 the Secretary under subsection (b) of this section is 

13 in effect; or 

14 (2) to prevent the availability of funding under 

15 section 5(g) during any period in which the author16 ity of the Secretary under subsection (b) of this sec17 tion is in effect. 

Æ 


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