I 
114TH CONGRESS 
1ST SESSION H. R. 1351 
To establish a State-sponsored national catastrophic risk consortium to ensure 
the availability and affordability of homeowners’ insurance coverage for 
catastrophic events. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 10, 2015 
Ms. WILSON of Florida introduced the following bill; which was referred to 
the Committee on Financial Services 
A BILL 
To establish a State-sponsored national catastrophic risk con-
sortium to ensure the availability and affordability of 
homeowners’ insurance coverage for catastrophic events. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Homeowners’ Defense Act of 2015’’. 
(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 purpose. 
Sec. 3. Establishment; status; principal office; membership. 
Sec. 4. Functions. 
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Sec. 5. Powers. 
Sec. 6. Nonprofit entity; conflicts of interest; audits. 
Sec. 7. Management. 
Sec. 8. Staff; experts and consultants. 
Sec. 9. Federal liability. 
Sec. 10. Authorization of appropriations. 
SEC. 2. FINDINGS AND PURPOSE. 
(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, their costs are likely to escalate 
in the coming years, in part because of weather-re-
lated exposure, coastal development patterns, and in-
creasing property values along the hurricane-prone 
or earthquake-vulnerable coastlines of the United 
States; 
(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; 
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(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-
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) Hurricane Sandy struck in 2012 along the 
Northeastern region of the United States, causing 
over $40,000,000,000 in property damages over a 
wide area; 
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(10) under the current disaster risk manage-
ment system, the Federal Government and, hence, 
taxpayers pay for rebuilding through government 
grants and low-interest loans, and the Federal Gov-
ernment will likely continue to provide significant 
levels of financial resources to pay for recovery from 
future catastrophes; 
(11) an alternative catastrophe risk-manage-
ment approach, one that has continued to grow and 
is now perceived in the marketplace as a viable 
method of financing mega-catastrophes, would have 
the Federal Government support State-based efforts 
aimed at combining disaster risks into diversified 
portfolios, and developing a common documentation, 
legal, and operational framework for issuing catas-
trophe bonds that are transferred to the private sec-
tor; and 
(12) a number of entities in the public sector 
have already sought protection through catastrophe 
bonds, and other alternative risk transfer instru-
ments, which package catastrophe risk as securities 
that are actively bought and sold in the capital mar-
kets. 
(b) PURPOSE.—The purpose of this Act is to estab-
lish a State-sponsored national catastrophic risk consor-
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tium to ensure the availability and affordability of home-
owners’ insurance coverage for catastrophic events. 
SEC. 3. ESTABLISHMENT; STATUS; PRINCIPAL OFFICE; 
MEMBERSHIP. 
(a) ESTABLISHMENT.—There is established an entity 
to be known as the ‘‘National Catastrophe Risk Consor-
tium’’ (in this Act 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. 
(d) MEMBERSHIP.—Any State that has established a 
reinsurance fund or has authorized the operation of a 
State residual insurance market entity, or State-sponsored 
provider of natural catastrophe insurance, shall be eligible 
to participate in the Consortium. 
SEC. 4. FUNCTIONS. 
The Consortium shall— 
(1) work with all States, particularly those par-
ticipating in the Consortium, to gather and maintain 
an inventory of catastrophe risk obligations held by 
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