SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Homeowners’ Defense Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings and purposes. 
TITLE I—NATIONAL CATASTROPHE RISK CONSORTIUM 
Sec. 101. Establishment; status; principal office; membership. 
Sec. 102. Functions. 
Sec. 103. Powers. 
Sec. 104. Nonprofit entity; conflicts of interest; audits. 
Sec. 105. Management. 
Sec. 106. Staff; experts and consultants. 
Sec. 107. Federal liability. 
Sec. 108. Authorization of appropriations. 
TITLE II—CATASTROPHE OBLIGATION GUARANTEES 
Sec. 201. Purposes. 
Sec. 202. Establishment of debt guarantee program. 
Sec. 203. Effect of guarantee. 
Sec. 204. Full faith and credit. 
Sec. 205. Fees for guarantees; amount; collection. 
Sec. 206. Payment of losses. 
Sec. 207. Regulations. 
TITLE III—REINSURANCE COVERAGE FOR ELIGIBLE STATE 
PROGRAMS 
Sec. 301. Program authority. 
Sec. 302. Contract principles. 
Sec. 303. Terms of reinsurance contracts. 
Sec. 304. Maximum Federal liability. 
Sec. 305. Federal Natural Catastrophe Reinsurance Fund. 
Sec. 306. Regulations. 
TITLE IV—MITIGATION GRANT PROGRAM 
Sec. 401. Mitigation grant program. 
TITLE V—GENERAL PROVISIONS 
Sec. 501. Eligible State programs. 
Sec. 502. Study and conditional coverage of commercial residential lines of in-
surance. 
Sec. 503. Definitions. 
Sec. 504. Regulations. 
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SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the United States has a history of cata-
strophic natural disasters, including hurricanes, tor-
nadoes, flood, fire, earthquakes, and volcanic erup-
tions; 
(2) although catastrophic natural disasters 
occur infrequently, they will continue to occur and 
are predictable; 
(3) such disasters generate large economic 
losses and a major component of those losses comes 
from damage and destruction to homes; 
(4) for the majority of Americans, their invest-
ment in their home represents their single biggest 
asset and the protection of that investment is para-
mount to economic and social stability; 
(5) the United States needs to take and support 
State actions to be better prepared for and better 
protected from catastrophes; 
(6) as the risk of catastrophic losses grows, so 
do the risks that any premiums collected by private 
insurers for extending coverage will be insufficient to 
cover future catastrophes, and private insurers, in 
an effort to protect their shareholders and policy-
holders (in the case of mutually owned companies), 
have thus significantly raised premiums and cur-
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tailed insurance coverage in States exposed to major 
catastrophes; 
(7) such effects on the insurance industry have 
been harmful to economic activity in States exposed 
to major catastrophes and have placed significant 
burdens on residents of such States; 
(8) Hurricanes Katrina, Rita, and Wilma 
struck the United States in 2005, causing over 
$200,000,000,000 in total economic losses, and in-
sured 
losses 
to 
homeowners 
in 
excess 
of 
$50,000,000,000; 
(9) the Federal Government has provided and 
will continue to provide resources to pay for losses 
from future catastrophes; 
(10) when Federal assistance is provided to the 
States, accountability for Federal funds disbursed is 
paramount; 
(11) the Government Accountability Office or 
other appropriate agencies must have the means in 
place to confirm that Federal funds for catastrophe 
relief have reached the appropriate victims and have 
contributed to the recovery effort as efficiently as 
possible so that taxpayer funds are not misspent and 
citizens are enabled to rebuild and resume produc-
tive activities as quickly as possible; 
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(12) States that are recipients of Federal funds 
must be responsible to account for and provide an 
efficient means for distribution of funds to home-
owners to enable the rapid rebuilding of local econo-
mies after a catastrophic event without unduly bur-
dening taxpayers who live in areas seldom affected 
by natural disasters; 
(13) State insurance and reinsurance programs 
can provide a mechanism for States to exercise that 
responsibility if they appropriately underwrite and 
price risk, and if they pay claims quickly and within 
established contractual terms; 
(14) making available Federal guarantees to en-
hance the capability of eligible State programs to 
issue debt will minimize the exposure of State and 
Federal taxpayers who otherwise may bear the con-
sequences of underfunded programs or under-in-
sured communities following catastrophic events, es-
pecially during today’s historic market turmoil; and 
(15) it is the proper role of the Federal Govern-
ment to prepare for and protect its citizens from ca-
tastrophes and to facilitate consumer protection, vic-
tim assistance, and recovery, including financial re-
covery. 
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(b) PURPOSES.—The purposes of this Act are to es-
tablish a program to provide Federal support for State- 
sponsored insurance programs to help homeowners pre-
pare for and recover from the damages caused by natural 
catastrophes, to encourage mitigation and prevention for 
such catastrophes, to promote the use of private market 
capital as a means to insure against such catastrophes, 
to expedite the payment of claims and better assist in the 
financial recovery from such catastrophes. 
TITLE 
I—NATIONAL 
CATAS-
TROPHE RISK CONSORTIUM 
SEC. 101. ESTABLISHMENT; STATUS; PRINCIPAL OFFICE; 
MEMBERSHIP. 
(a) ESTABLISHMENT.—There is established an entity 
to be known as the ‘‘National Catastrophe Risk Consor-
tium’’ (in this title referred to as the ‘‘Consortium’’). 
(b) STATUS.—The Consortium is not a department, 
agency, or instrumentality of the United States Govern-
ment. 
(c) PRINCIPAL OFFICE.—The principal office and 
place of business of the Consortium shall be such location 
within the United States determined by the Board of Di-
rectors to be the most advantageous for carrying out the 
purpose and functions of the Consortium. 
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