I 
116TH CONGRESS 
2D SESSION 
H. R. 7412 
To establish a temporary voluntary program for support of insurers providing 
business interruption insurance coverage during the COVID-19 pandemic, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2020 
Mr. THOMPSON of California introduced the following bill; which was referred 
to the Committee on Financial Services 
A BILL 
To establish a temporary voluntary program for support of 
insurers providing business interruption insurance cov-
erage during the COVID-19 pandemic, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Business Interruption 
Relief Act of 2020’’. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
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(1) mandatory civil authority shutdowns as a 
result of the coronarvirus disease 2019 (COVID-19) 
have adversely impacted businesses throughout the 
United States; 
(2) the American economy relies in part upon 
an investment in and expectation of insurance bene-
fits that back business assets and the workforce; 
(3) many businesses have paid policy premiums 
for business interruption coverage and, in particular, 
for coverage for civil authority shutdowns of busi-
nesses; 
(4) many businesses that purchased business 
interruption coverage and coverage for civil author-
ity shutdowns did so in the expectation that insur-
ance would protect a temporary shutdown of their 
workforce, prevent layoffs and furloughs, and allow 
an orderly restart of operations; and 
(5) State laws mandate an orderly and prompt 
payment of first party insurance claims and insurers 
have claim management resources with the expertise 
and skills to timely manage claims payment and dis-
tribution of funds according to expected and relied 
upon guidelines and procedures that policyholders 
had the expectation to receive. 
(b) PURPOSES.—The purposes of this Act are— 
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(1) to establish a program to encourage and 
provide support for insurers who timely pay claims 
under business interruption coverage to policyholders 
adversely affected by civil authority shutdowns re-
sulting from the COVID-19 pandemic; and 
(2) to establish the program in a manner that 
ensures that— 
(A) carriers that sold policies that cover 
business interruption losses for COVID-19 do 
not receive any Federal windfall; and 
(B) carriers that sold policies that ex-
pressly exclude coverage for a virus or pan-
demic for COVID-19 can avoid costly litigation 
with policyholders, and policyholders may re-
ceive policy benefits to compensate for govern-
ment shutdown and business interruption. 
SEC. 3. PUBLIC/PRIVATE PARTNERSHIP BUSINESS INTER-
RUPTION INSURANCE RELIEF PROGRAM FOR 
COVID-19. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Treasury the Business Interruption 
Relief Program. 
(b) VOLUNTARY.—Participation in the Program on 
the part of an insurer shall be voluntary at the option of 
the insurer. 
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(c) ELIGIBLE POLICIES.—To be eligible to partici-
pate in the Program, an insurer shall have, as of the date 
of initial participation in the Program, one or more out-
standing and existing policies of insurance issued to a pol-
icyholder for business interruption insurance coverage 
that— 
(1) expressly include coverage for losses during 
any period of time that any civil authority shutdown 
as a result of the COVID-19 pandemic is in effect; 
and 
(2) expressly exclude coverage for a ‘‘virus’’. 
(d) ASSISTANCE.— 
(1) 
REIMBURSEMENT
FOR
PAYMENT
OF 
CLAIMS.—Under the Program, the Secretary shall 
provide financial assistance to reimburse any partici-
pating insurer that voluntarily pays benefits under 
an eligible policy for COVID-19 losses, thereby 
waiving the exclusion referred to in subsection 
(c)(2), in the amount of— 
(A) the benefit to be paid in accordance 
with all terms of the policy; plus 
(B) any expenses incurred by the partici-
pating insurer relating to paying such claim. 
(2) PROHIBITION.—The Program shall provide 
no benefit or reimbursement for an insurer’s pay-
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ment and claim expenses for benefits paid under any 
policy for business interruption coverage that does 
not expressly exclude coverage for a ‘‘virus’’. 
(3) TREATMENT OF RIGHTS AND DUTIES.— 
(A) 
POLICYHOLDERS.—Policyholders 
under policies for which reimbursement is pro-
vided under the Program shall retain all first 
party rights to policies for business interruption 
insurance coverage. 
(B) STATE
LAW.—Participation in the 
Program by an insurer shall not supersede or 
replace any rights of good faith and fair duty 
under State insurance law. 
(4) COMPLIANCE.—The Secretary shall take 
any such actions as may be necessary, before pro-
viding any assistance pursuant to paragraph (1) to 
a participating insurer, that the participating in-
surer makes payment to policyholders in compliance 
with the terms and conditions of the policies referred 
to in subsection (c). 
(e) LIMITATION
ON ASSISTANCE
FOR
A PARTICI-
PATING INSURER.—The Secretary shall limit the amount 
of assistance provided for a participating insurer under 
the Program under this section according to the limits of 
the eligible policies involved. 
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(f) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) BUSINESS INTERRUPTION INSURANCE COV-
ERAGE.—The term ‘‘business interruption insurance 
coverage’’ means property and casualty insurance 
coverage provided or made available for losses result-
ing from periods of suspended business operations, 
whether provided under broader coverage or sepa-
rately. 
(2) CIVIL AUTHORITY SHUTDOWN.—The term 
‘‘civil authority shutdown’’ means forced closure of 
businesses, or evacuation, by mandate, law, or order 
of any State or local government or governmental of-
ficer or agency. 
(3) COVID-19 LOSSES.—The term ‘‘COVID-19 
losses’’ means for losses resulting from business 
interruption due to a civil authority shutdown as a 
result of the COVID-19 pandemic. 
(4) ELIGIBLE POLICY.—The term ‘‘eligible pol-
icy’’ means a policy for business interruption insur-
ance coverage described in section 3(c). 
(5) INSURER.—The term ‘‘insurer’’ has the 
meaning given such term in section 102 of the Ter-
rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
note). 
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(6) PARTICIPATING INSURER.—The term ‘‘par-
ticipating insurer’’ means an insurer that— 
(A) has voluntarily elected, in accordance 
with such procedures and requirements as the 
Secretary shall establish, to participate in the 
Program; and 
(B) is in compliance with the requirements 
under this section for participation in the Pro-
gram. 
(7) PROGRAM.—The term ‘‘Program’’ means 
the Business Interruption Relief Program estab-
lished under this section. 
(g) REGULATIONS.—The Secretary shall issue any 
regulations necessary to carry out the Program. 
(h) FUNDING.—There is authorized to be appro-
priated such sums as may be necessary for providing fi-
nancial assistance under the Program to participating in-
surers. 
Æ 
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