I 
109TH CONGRESS 
2D SESSION 
H. R. 5587 
To establish a bipartisan commission on insurance reform. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2006 
Mr. MEEK of Florida (for himself and Mr. DAVIS of Florida) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To establish a bipartisan commission on insurance reform. 
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 ‘‘Commission on Cata-
strophic Disaster Risk and Insurance Act of 2006’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Hurricanes Katrina, Rita, and Wilma, 
which struck the United States in 2005, caused over 
$200 billion in total economic losses, including in-
sured and uninsured losses. 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(2) Although private sector insurance is cur-
rently available to spread some catastrophe-related 
losses throughout the Nation and internationally, 
most experts believe there will be significant insur-
ance and reinsurance shortages, resulting in dra-
matic rate increases for consumers and businesses, 
and the unavailability of catastrophe insurance. 
(3) The Federal Government has provided and 
will continue to provide billions of dollars and re-
sources to pay for losses from catastrophes, includ-
ing hurricanes, volcanic eruptions, tsunamis, tor-
nados, and other disasters, at huge costs to Amer-
ican taxpayers. 
(4) The Federal Government has a critical in-
terest in ensuring appropriate and fiscally respon-
sible risk management of catastrophes. Mortgages 
require reliable property insurance, and the unavail-
ability of reliable property insurance would make 
most real estate transactions impossible. In addition, 
the public health, safety, and welfare demand that 
structures damaged or destroyed in a catastrophe be 
reconstructed as soon as possible. Therefore, the in-
ability of the private sector insurance and reinsur-
ance markets to maintain sufficient capacity to en-
able Americans to obtain property insurance cov-
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
erage in the private sector endangers the national 
economy and the public health, safety, and welfare. 
(5) Multiple proposals have been introduced in 
the United States Congress over the past decade to 
address catastrophic risk insurance, including the 
creation of a national catastrophic reinsurance fund 
and the revision of the Federal tax code to allow in-
surers to use tax-deferred catastrophe funds, yet 
Congress has failed to act on any of these proposals. 
(6) To the extent the United States faces high 
risks from catastrophe exposure, essential technical 
information on financial structures and innovations 
in the catastrophe insurance market is needed. 
(7) The most efficient and effective approach to 
assessing the catastrophe insurance problem in the 
public policy context is to establish a bipartisan com-
mission of experts to study the management of cata-
strophic disaster risk, and to require such commis-
sion to timely report its recommendations to Con-
gress so that Congress can quickly craft a solution 
to protect the American people. 
SEC. 3. ESTABLISHMENT. 
There is established a bipartisan Commission on Cat-
astrophic Disaster Risk and Insurance (in this Act re-
ferred to as the ‘‘Commission’’). 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
SEC. 4. MEMBERSHIP. 
(a) MEMBERS.—The Commission shall be composed 
of the following: 
(1) The Director of the Federal Emergency 
Management Agency or a designee of the Director. 
(2) The Administrator of the National Oceanic 
and Atmospheric Administration or a designee of the 
Administrator. 
(3) 12 additional members or their designees of 
whom one shall be— 
(A) a representative of a consumer group; 
(B) a representative of a primary insur-
ance company; 
(C) a representative of a reinsurance com-
pany; 
(D) an independent insurance agent with 
experience in writing property and casualty in-
surance policies; 
(E) a State insurance regulator; 
(F) a State emergency operations official; 
(G) a scientist; 
(H) a faculty member of an accredited uni-
versity with experience in risk management; 
(I) a member of nationally recognized 
think tank with experience in risk management; 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(J) a homebuilder with experience in struc-
tural engineering; 
(K) a mortgage lender; and 
(L) a nationally recognized expert in anti-
trust law. 
(b) MANNER OF APPOINTMENT.— 
(1) IN GENERAL.—Any member of the Commis-
sion described under subsection (a)(3) shall be ap-
pointed only upon unanimous agreement of— 
(A) the majority leader of the Senate; 
(B) the minority leader of the Senate; 
(C) the Speaker of the House of Rep-
resentatives; and 
(D) the minority leader of the House of 
Representatives. 
(2) CONSULTATION.—In making any appoint-
ment under paragraph (1), each individual described 
in paragraph (1) shall consult with the President. 
(c) ELIGIBILITY LIMITATION.—Except as provided in 
subsection (a), no member or officer of the Congress, or 
other member or officer of the Executive Branch of the 
United States Government or any State government may 
be appointed to be a member of the Commission. 
(d) PERIOD OF APPOINTMENT.— 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(1) IN GENERAL.—Each member of the Com-
mission shall be appointed for the life of the Com-
mission. 
(2) VACANCIES.—A vacancy on the Commission 
shall not affect its powers, but shall be filled in the 
same manner as the original appointment was made. 
(e) QUORUM.— 
(1) MAJORITY.—A majority of the members of 
the Commission shall constitute a quorum, but a 
lesser number may hold hearings. 
(2) APPROVAL ACTIONS.—All recommendations 
and reports of the Commission required by this Act 
shall be approved only by a majority vote of a 
quorum of the Commission. 
(f) CHAIRPERSON.—The majority leader of the Sen-
ate, the minority leader of the Senate, the Speaker of the 
House of Representatives, and the minority leader of the 
House of Representatives shall jointly select 1 member ap-
pointed pursuant to subsection (a) to serve as the Chair-
person of the Commission. 
(g) MEETINGS.—The Council shall meet at the call 
of its Chairperson or a majority of its members at any 
time. 
SEC. 5. DUTIES OF THE COMMISSION. 
The Commission shall— 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(1) assess— 
(A) the condition of the property and cas-
ualty insurance and reinsurance markets in the 
aftermath of Hurricanes Katrina, Rita, and 
Wilma in 2005, and the 4 major hurricanes 
that struck the United States in 2004; and 
(B) the ongoing exposure of the United 
States to earthquakes, volcanic eruptions, 
tsunamis, and floods; and 
(2) recommend and report, as required under 
section 6, any necessary legislative and regulatory 
changes that will— 
(A) improve the domestic and international 
financial health and competitiveness of such 
markets; and 
(B) assure consumers of the— 
(i) availability of adequate insurance 
coverage when an insured event occurs; 
and 
(ii) best possible range of insurance 
products at competitive prices. 
SEC. 6. REPORT. 
(a) IN GENERAL.—Not later than 90 days after the 
appointment of Commission members under section 4, the 
Commission shall submit to the President and the Con-
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
gress a final report containing a detailed statement of its 
findings, together with any recommendations for legisla-
tion or administrative action that the Commission con-
siders appropriate, in accordance with the requirements 
of section 5. 
(b) CONSIDERATIONS.—In developing any rec-
ommendations under subsection (a), the Commission shall 
consider— 
(1) the catastrophic insurance and reinsurance 
market structures and the relevant commercial prac-
tices in such insurance industries in providing insur-
ance protection to different sectors of the American 
population; 
(2) the constraints and opportunities in imple-
menting a catastrophic insurance system that can 
resolve key obstacles currently impeding broader im-
plementation of catastrophe risk management and 
financing with insurance; 
(3) methods to improve risk underwriting prac-
tices, including— 
(A) analysis of modalities of risk transfer 
for potential financial losses; 
(B) assessment of private securitization of 
insurances risks; 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(C) private-public partnerships to increase 
insurance capacity in constrained markets; and 
(D) the financial feasibility and sustain-
ability of a national catastrophe pool or regional 
catastrophe pools designed to provide adequate 
insurance coverage and increased underwriting 
capacity to insurers and reinsurers; 
(4) approaches for implementing a public insur-
ance scheme for low-income communities, in order to 
promote risk reduction and explicit insurance cov-
erage in such communities; 
(5) methods to strengthen insurance regulatory 
requirements and supervision of such requirements, 
including solvency for catastrophic risk reserves; 
(6) methods to promote public insurance poli-
cies linked to programs for loss reduction in the un-
insured sectors of the American population; 
(7) methods to strengthen the risk assessment 
and enforcement of structural mitigation and vulner-
ability reduction measures, such as zoning and 
building code compliance; 
(8) the appropriate role for the Federal Govern-
ment in stabilizing the property and casualty insur-
ance and reinsurance markets, with an analysis— 
(A) of options such as— 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(i) a reinsurance mechanism; 
(ii) the modernization of Federal tax-
ation policies; and 
(iii) an ‘‘insurance of last resort’’ 
mechanism; and 
(B) how to fund such options; and 
(9) the merits of the 3 principle legislative pro-
posals currently pending in the 109th Congress, 
namely— 
(A) the creation of a Federal catastrophe 
fund to act as a backup to State catastrophe 
funds; 
(B) tax-deferred catastrophe accounts for 
insurers; and 
(C) tax-free catastrophe accounts for pol-
icyholders. 
SEC. 7. POWERS OF THE COMMISSION. 
(a) HEARINGS.—The Commission or, at the direction 
of the Commission, any subcommittee or member of the 
Commission, may, for the purpose of carrying out this 
Act— 
(1) hold such public hearings in such cities and 
countries, sit and act at such times and places, take 
such testimony, receive such evidence, and admin-
ister such oaths or affirmations as the Commission 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
or such subcommittee or member considers advis-
able; and 
(2) require, by subpoena or otherwise, the at-
tendance and testimony of such witnesses and the 
production of such books, records, correspondence, 
memoranda, papers, documents, tapes, and materials 
as the Commission or such subcommittee or member 
considers advisable. 
(b) 
ISSUANCE
AND
ENFORCEMENT
OF
SUB-
POENAS.— 
(1) ISSUANCE.—Subpoenas issued under sub-
section (a) shall bear the signature of the Chair-
person of the Commission and shall be served by any 
person or class of persons designated by the Chair-
person for that purpose. 
(2) ENFORCEMENT.—In the case of contumacy 
or failure to obey a subpoena issued under sub-
section (a), the United States district court for the 
judicial district in which the subpoenaed person re-
sides, is served, or may be found may issue an order 
requiring such person to appear at any designated 
place to testify or to produce documentary or other 
evidence. Any failure to obey the order of the court 
may be punished by the court as a contempt of that 
court. 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(3) CONFIDENTIALITY.— 
(A) IN
GENERAL.—Information obtained 
under a subpoena issued under subsection (a) 
which is deemed confidential, or with reference 
to which a request for confidential treatment is 
made by the person furnishing such informa-
tion— 
(i) shall be exempt from disclosure 
under section 552 of title 5, United States 
Code; and 
(ii) shall not be published or disclosed 
unless the Commission determines that the 
withholding of such information is contrary 
to the interest of the United States. 
(B) EXCEPTION.—The requirements of 
subparagraph (A) shall not apply to the publi-
cation or disclosure of any data aggregated in 
a manner that ensures protection of the identity 
of the person furnishing such data. 
(c) AUTHORITY OF MEMBERS OR AGENTS OF THE 
COMMISSION.—Any member or agent of the Commission 
may, if authorized by the Commission, take any action 
which the Commission is authorized to take by this Act. 
(d) OBTAINING OFFICIAL DATA.— 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(1) AUTHORITY.—Notwithstanding any provi-
sion of section 552a of title 5, United States Code, 
the Commission may secure directly from any de-
partment or agency of the United States any infor-
mation necessary to enable the Commission to carry 
out the purposes of this Act. 
(2) PROCEDURE.—Upon request of the Chair-
person of the Commission, the head of that depart-
ment or agency shall furnish the information re-
quested to the Commission. 
(e) POSTAL SERVICES.—The Commission may use 
the United States mails in the same manner and under 
the same conditions as other departments and agencies of 
the Federal Government. 
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the 
request of the Commission, the Administrator of General 
Services shall provide to the Commission, on a reimburs-
able basis, any administrative support services necessary 
for the Commission to carry out its responsibilities under 
this Act. 
(g) GIFTS.— 
(1) IN
GENERAL.—The Commission may ac-
cept, use, and dispose of gifts or donations of serv-
ices or property. 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(2) REGULATIONS.—The Commission shall 
adopt internal regulations governing the receipt of 
gifts or donations of services or property similar to 
those described in part 2601 of title 5, Code of Fed-
eral Regulations. 
SEC. 8. COMMISSION PERSONNEL MATTERS. 
(a) COMPENSATION OF MEMBERS.—Each member of 
the Commission who is not an officer or employee of the 
Federal Government shall be compensated at a rate equal 
to the daily equivalent of the annual rate of basic pay pre-
scribed for GS-18 of the General Schedule under section 
5332 of title 5, United States Code, for each day (includ-
ing travel time) during which such member is engaged in 
the performance of the duties of the Commission. All 
members of the Commission who are officers or employees 
of the United States shall serve without compensation in 
addition to that received for their services as officers or 
employees of the United States. 
(b) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or 
regular places of business in the performance of services 
for the Commission. 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
(c) SUBCOMMITTEES.—The Commission may estab-
lish subcommittees and appoint persons to such sub-
committees as the Commission considers appropriate. 
(d) STAFF.—Subject to such policies as the Commis-
sion may prescribe, the Chairperson of the Commission 
may appoint and fix the pay of such additional personnel 
as the Chairperson considers appropriate to carry out the 
duties of the Commission. 
(e) APPLICABILITY
OF CERTAIN CIVIL SERVICE 
LAWS.—Subcommittee members and staff of the Commis-
sion may be— 
(1) appointed without regard to the provisions 
of title 5, United States Code, governing appoint-
ments in the competitive service; and 
(2) paid without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of that 
title relating to classification and General Schedule 
pay rates, except that an individual so appointed 
may not receive pay in excess of the annual rate of 
basic pay prescribed for GS-18 of the General 
Schedule under section 5332 of that title. 
(f) EXPERTS AND CONSULTANTS.—In carrying out 
its objectives, the Commission may procure temporary and 
intermittent services of consultants and experts under sec-
tion 3109(b) of title 5, United States Code, at rates for 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS
individuals which do not exceed the daily equivalent of the 
annual rate of basic pay prescribed for GS-18 of the Gen-
eral Schedule under section 5332 of that title. 
(g) DETAIL OF GOVERNMENT EMPLOYEES.—Upon 
request of the Chairperson of the Commission, any Fed-
eral Government employee may be detailed to the Commis-
sion to assist in carrying out the duties of the Commis-
sion— 
(1) on a reimbursable basis; and 
(2) such detail shall be without interruption or 
loss of civil service status or privilege. 
SEC. 9. TERMINATION. 
The Commission shall terminate 60 days after the 
date on which the Commission submits its report under 
section 6. 
SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated $5,000,000 
to carry out the purposes of this Act. 
Æ 
VerDate Aug 31 2005 
04:10 Jun 13, 2006
Jkt 049200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6301
E:\BILLS\H5587.IH
H5587
hmoore on PROD1PC68 with HMBILLS