SEC. 608. PAYMENT OF CLAIMS.
The Director shall prescribe regulations establishing
the general method or methods by which proved and ap-
proved claims for losses may be adjusted and paid for any
losses or damages covered by toxic mold hazard insurance
made available under this title.
SEC. 609. DISSEMINATION OF INSURANCE INFORMATION.
The Director shall from time to time take such action
as may be necessary in order to make information avail-
able to the public, and to any State or local agency or
official, with regard to—
(1) the toxic mold hazard insurance program,
its coverage, and objectives; and
(2) estimated and chargeable insurance pre-
mium rates under the program, including the basis
for and differences between such rates in accordance
with the provisions of this subtitle.
SEC. 610. COORDINATION WITH OTHER PROGRAMS.
In carrying out this title, the Director shall consult
with other departments and agencies of the Federal Gov-
ernment, and with interstate, State, and local agencies
having responsibilities for toxic mold inspection and pre-
vention, in order to ensure that the programs of such
agencies and the program under this title are mutually
consistent.
SEC. 611. REPORTS.
The Director shall annually submit a report of oper-
ations under this title to the Congress.
Subtitle B—Organization and Ad-
ministration of Insurance Pro-
gram
SEC. 621. IMPLEMENTATION.
Following such consultation with representatives of
the insurance industry as may be necessary, the Director
shall implement the toxic mold hazard insurance program
under subtitle A in accordance with the provisions of part
1 of this subtitle, and, if a determination is made by the
Director under section 641, under part 2 of this subtitle.
PART 1—INDUSTRY PROGRAM WITH
FEDERAL FINANCIAL ASSISTANCE
SEC. 631. INDUSTRY INSURANCE POOL.
(a) FORMATION.—The Director may encourage and
otherwise assist any insurance companies and other insur-
ers that meet the requirements prescribed under sub-
section (b) to form, as associate, or otherwise join together
in a pool—
(1) in order to provide the insurance coverage
authorized under subtitle A; and
(2) for the purpose of assuming, on such terms
and conditions as may be agreed upon, such finan-
cial responsibility as will enable such companies and
other insurers, with the Federal financial and other
assistance available under this title, to assure a rea-
sonable proportion of responsibility for the adjust-
ment and payment of claims for losses under the
toxic mold hazard insurance program.
(b) REQUIREMENTS.—To promote the effective ad-
ministration of the toxic mold hazard insurance program
under this part, and to ensure that the objectives of this
title are furthered, the Director may prescribe appropriate
requirements for insurance companies and other insurers
participating in such pool, including minimum require-
ments for capital or surplus or assets.
SEC. 632. AGREEMENTS WITH INSURANCE POOL.
(a) AUTHORITY.—The Director may enter into such
agreements with the pool formed or otherwise created
under this part as the Director deems necessary to carry
out the purposes of this title.
(b) CONTENTS.—Such agreements shall specify—
(1) the terms and conditions under which risk
capital will be available for the adjustment and pay-
ments of claims;
(2) the terms and conditions under which the
pool (and the companies and other insurers partici-
pating therein) shall participate in premiums re-
ceived and profits or losses realized or sustained;
(3) the maximum amount of profit, established
by the Director and set forth in the schedules pre-
scribed under section 607, which may be realized by
such pool (and the companies and other insurers
participating therein);
(4) the terms and conditions under which oper-
ating costs and allowances set forth in the schedules
prescribed under section 607 may be paid; and
(5) the terms and conditions under which pre-
mium equalization payments under section 634 will
be made.
(c) PARTICIPATION.—In addition, such agreements
shall contain such provisions as the Director finds nec-
essary to ensure that—
(1) no insurance company or other insurer that
meets the requirements prescribed under section
631(b) and has indicated an intention to participate
in the toxic mold hazard insurance program on a
risk-sharing basis, will be excluded from partici-
pating in the pool;
(2) the insurance companies and other insurers
participating in the pool will take whatever action
may be necessary to provide continuity of toxic mold
hazard insurance coverage by the pool; and
(3) any insurance companies and other insur-
ers, insurance agents, and brokers and insurance ad-
justment organizations will be permitted to cooper-
ate with the pool as fiscal agents or otherwise, on
other than a risk-sharing basis, to the maximum ex-
tent practicable.
SEC. 633. ADJUSTMENT AND PAYMENT OF CLAIMS AND JU-
DICIAL REVIEW.
The insurance companies and other insurers that
form, associate, or otherwise join together in the pool
under this part may adjust and pay all claims for proved
and approved losses covered by toxic mold hazard insur-
ance in accordance with the provisions of this title and,
upon the disallowance by any such company or other in-
surer of any such claim, or upon the refusal of the claim-
ant to accept the amount allowed upon any such claim,
the claimant, within one year after the date of mailing
of notice of disallowance or partial disallowance of the
claim, may institute an action on such claim against such
company or other insurer in the United States district
court for the district in which the insured property or the
major part thereof shall have been situated, and original
exclusive jurisdiction is hereby conferred upon such court
to hear and determine such action without regard to the
amount in controversy.
SEC. 634. PREMIUM EQUALIZATION PAYMENTS.
(a) PAYMENTS.—The Director, on such terms and
conditions as the Director may from time to time pre-
scribe, shall make periodic payments to the pool formed
or otherwise created under section 631, in recognition of
such reductions in chargeable premium rates under section
605 below estimated premium rates under section 604(1)
as are required in order to make toxic mold hazard insur-
ance available on reasonable terms and conditions.
(b) PERIODS AND METHODS.—Designated periods
under this section and the methods for determining the
sum of premiums paid or payable during such periods
shall be established by the Director.
SEC. 635. EMERGENCY IMPLEMENTATION OF PROGRAM.
(a) AUTHORITY.—Notwithstanding any other provi-
sions of this title, for the purpose of providing toxic mold
hazard insurance coverage at the earliest possible time,
the Director may carry out the insurance program under
subtitle A during the period ending September 30, 2004,
in accordance with the provisions of this part and the
other provisions of this title insofar as they relate to this
part, but subject to the modifications made by or under
subsection (b).
(b) PREMIUM RATES AND PROCEDURES.—In car-
rying out the toxic mold hazard insurance program pursu-
ant to subsection (a), the Director—