ing such coverage who pays the applicable pre-
mium charged for such coverage. 
(9) OTHER QUALIFICATIONS.— 
(A) IN
GENERAL.—The State program 
shall (for the year for which the coverage is in 
effect) comply with regulations that shall be 
issued under this paragraph by the Secretary. 
The regulations shall establish criteria for State 
programs to qualify to purchase reinsurance 
under this section, which are in addition to the 
requirements under the other paragraphs of 
this subsection. 
(B) CONTENTS.—The regulations issued 
under this paragraph shall include requirements 
that— 
(i) the State program have public 
members on its board of directors or have 
an advisory board with public members; 
(ii) insurance or reinsurance coverage, 
as applicable, made available through the 
State program not supplant coverage that 
is otherwise reasonably available and af-
fordable in the private market; 
(iii) the State program provide ade-
quate insurance or reinsurance protection,
as applicable, for the peril covered, which 
shall include a range of deductibles and 
premium costs that reflect the applicable 
risk to eligible properties; 
(iv) insurance or reinsurance cov-
erage, as applicable, provided by the State 
program is made available on a non-
discriminatory basis to all qualifying resi-
dents or businesses; 
(v) any new construction, substantial 
rehabilitation, and renovation insured or 
reinsured by the program complies with 
applicable State or local government build-
ing, fire, and safety codes; 
(vi) the State, or appropriate local 
governments within the State, have in ef-
fect and enforce nationally recognized 
model building, fire, and safety codes and 
consensus-based standards that offer dis-
aster resistance that is substantially equiv-
alent or greater than the resistance under 
any requirements for floods, earthquakes, 
or wind resistance issued by the Federal 
Emergency Management Agency;
(vii) the State has taken actions to es-
tablish an insurance rate structure that 
takes into account measures to mitigate in-
surance losses; 
(viii) there are in effect, in such State, 
laws or regulations sufficient to prohibit 
price gouging, during the term of reinsur-
ance coverage under this Act for the State 
program, in any disaster area located with-
in the State; and 
(ix) the State program complies with 
such other requirements that the Secretary 
considers necessary to carry out the pur-
poses of this Act. 
(b) TERMS OF CONTRACTS.—Each contract under 
this section for reinsurance coverage under this Act shall 
be subject to the following terms and conditions: 
(1) MATURITY.—The term of the contract shall 
not exceed 1 year or such other term as the Sec-
retary may determine. 
(2) PAYMENT CONDITION.—The contract shall 
authorize claims payments for eligible losses only to 
the eligible State program purchasing the coverage. 
(3) RETAINED
LOSSES
REQUIREMENT.—For 
each event of a covered peril, the contract shall
make a payment for the event only if the total 
amount of insurance claims for losses, which are 
covered by qualified lines, occur to properties located 
within the State covered by the contract, and result 
from the event, exceeds the amount of retained 
losses provided under the contract (pursuant to sec-
tion 7(a)) purchased by the eligible State program. 
(4) MULTIPLE
EVENTS.—The contract shall 
cover any eligible losses from one or more covered 
events that may occur during the term of the con-
tract and shall provide that if multiple events occur, 
the retained losses requirement under paragraph (3) 
shall apply to each event. 
(5) TIMING
OF
ELIGIBLE
LOSSES.—Eligible 
losses under the contract shall include only insur-
ance claims for property covered by qualified lines 
that are reported to the eligible State program with-
in the 3-year period beginning upon the event or 
events for which payment under the contract is pro-
vided. 
(6) PRICING.—The price of reinsurance cov-
erage under the contract for an eligible State pro-
gram shall be an amount established by the Sec-
retary for the contract, as follows:
(A) 1 PERCENT ABOVE MARKET RATE.— 
Except as provided in subparagraph (B), the 
price of reinsurance coverage under the con-
tract shall be the amount that is one percent 
greater than the lowest amount for which such 
State program can obtain equivalent coverage 
in the private reinsurance market, as dem-
onstrated to the Secretary by the eligible State 
program. 
(B) MARKET COVERAGE UNAVAILABLE.— 
In the event that an eligible State program can 
not demonstrate a price for equivalent coverage 
in the private reinsurance market for purposes 
of subparagraph (A), the price of reinsurance 
coverage under the contract for such State pro-
gram shall be the amount that is one percent 
greater than the lowest amount for which a pri-
vate insurer with an equivalent risk portfolio 
can obtain equivalent coverage in the private re-
insurance market, as demonstrated to the Sec-
retary by the eligible State program. 
(7) ADDITIONAL CONTRACT OPTION.—The con-
tract shall provide that the purchaser of the contract 
may, during the term of such original contract, pur-
chase additional contracts from among those offered