(C) $1,000,000 for fiscal year 2003 for the
initial expenses of the Secretary in carrying out
the program authorized under section 2; and
(D) such additional sums as may be nec-
essary to carry out subsequent activities of the
Secretary under this Act.
(2) OFFSET.—The Secretary shall provide, to
the maximum extent practicable, that an amount
equal to any amount appropriated under paragraph
(1) is obtained from purchasers of reinsurance cov-
erage under this Act and deposited in the Fund es-
tablished under section 7. Such amounts shall be ob-
tained by inclusion of a provision for the Secretary’s
and the Commission’s expenses incorporated into the
pricing of the contracts for such reinsurance cov-
erage, pursuant to section 5(a)(3)(C).
(i) TERMINATION.—The Commission shall terminate
upon the effective date of the repeal under section 11(c).
SEC. 9. DEFINITIONS.
For purposes of this Act, the following definitions
shall apply:
(1) COMMISSION.—The term ‘‘Commission’’
means the National Commission on Catastrophe
Risks and Insurance Loss Costs established under
section 8.
(2) COVERED PERILS.—The term ‘‘covered per-
ils’’ means the disaster perils under section 4.
(3) COVERED PURCHASER.—The term ‘‘covered
purchaser’’ means, with respect to reinsurance cov-
erage made available under a contract under section
5, the purchaser of the contract auctioned under
such section or any subsequent holder or holders of
the contract.
(4) DISASTER AREA.—The term ‘‘disaster area’’
means a geographical area, with respect to which—
(A) a covered peril has occurred; and
(B) a declaration that a major disaster ex-
ists, as a result of the occurrence of such
peril—
(i) has been made by the President of
the United States; and
(ii) is in effect.
(5) ELIGIBLE
LOSSES.—The term ‘‘eligible
losses’’ means losses in excess of the sustained and
retained losses, as defined by the Secretary after
consultation with the Commission.
(6) 
PRICE
GOUGING.—The 
term 
‘‘price
gouging’’ means the providing of any consumer good
or service by a supplier for a price that the supplier
knows or has reason to know is greater, by at least
the percentage set forth in a State law or regulation
prohibiting such act (notwithstanding any real cost
increase due to any attendant business risk and
other reasonable expenses that result from the major
disaster involved), than the price charged by the
supplier for such consumer good or service imme-
diately before the disaster.
(7) QUALIFIED
LINES.—The term ‘‘qualified
lines’’ means lines of insurance coverage for which
losses are covered under section 3 by reinsurance
coverage under this Act.
(8) REINSURANCE COVERAGE.—The term ‘‘re-
insurance coverage under this Act’’ means coverage
under contracts made available under section 5 by
the Secretary.
(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.
(10) STATE.—The term ‘‘State’’ means the
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam,
the Virgin Islands, American Samoa, and any other
territory or possession of the United States.
SEC. 10. REGULATIONS.
The Secretary shall issue any regulations necessary
to carry out the program for reinsurance coverage under
this Act.
SEC. 11. TERMINATION.
(a) IN GENERAL.—Except as provided in subsection
(b), the Secretary may not provide any reinsurance cov-
erage under this Act covering any period after the expira-
tion of the 10-year period beginning on the date of the
enactment of this Act.
(b) EXTENSION.—If upon the expiration of the period
under subsection (a) the Secretary, in consultation with
the Commission, determines that continuation of the pro-
gram for reinsurance coverage under this Act is necessary
to carry out the purpose of this Act under section 2(b)
because of insufficient growth of capacity in the private
homeowners’ insurance market, the Secretary shall con-
tinue to provide reinsurance coverage under this Act until
the expiration of the 5-year period beginning upon the ex-
piration of the period under subsection (a).
(c) REPEAL.—Effective upon the date that reinsur-
ance coverage under this Act is no longer available or in
force pursuant to subsection (a) or (b), this Act (except
for this section) is repealed.
(d) DEFICIT REDUCTION.—The Secretary shall cover
into the General Fund of the Treasury any amounts re-
maining in the Fund under section 7 upon the repeal of
this Act.
SEC. 12. ANNUAL STUDY OF COST AND AVAILABILITY OF
DISASTER INSURANCE AND PROGRAM NEED.
(a) IN GENERAL.—The Secretary shall, on an annual
basis, conduct a study and submit to the Congress a report
on the cost and availability of homeowners’ insurance for
losses resulting from catastrophic disasters covered by the
reinsurance program under this Act.
(b) CONTENTS.—Each annual study under this sec-
tion shall determine and identify, on an aggregate basis—
(1) for each State or region, the capacity of the
private homeowners’ insurance market with respect
to coverage for losses from catastrophic disasters;
(2) for each State or region, the percentage of
homeowners who have such coverage, the disasters
covered, and the average cost of such coverage;
(3) for each State or region, the progress that
private reinsurers and capital markets have made in
providing reinsurance for such homeowners’ insur-
ance;
(4) for each State or region, the effects of the
Federal reinsurance program under this Act on the
availability and affordability of such insurance; and
(5) the appropriate time for termination of the
Federal reinsurance program under this Act.
(c) TIMING.—Each annual report under this section
shall be submitted not later than March 30 of the year
after the year for which the study was conducted.
(d) COMMENCEMENT
OF
REPORTING
REQUIRE-
MENT.—The Secretary shall first submit an annual report
under this section not later than 2 years after the date
of the enactment of this Act.
Æ