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‘‘(A) PRIMARY
INSURANCE
COVERAGES
RATES.—Once the rates for the primary insur-
ance coverages are approved by the Independ-
ent Board under this subsection, such rates as
proposed under paragraph (1) shall become
final and shall be included by the Board in the
plan of operation under section 902 for the pri-
mary insurance coverages issued by the Cor-
poration.
‘‘(B) REINSURANCE
COVERAGE
RATES.—
Once the methodologies for the reinsurance cov-
erage rates are approved by the Independent
Board under this subsection, the rates proposed
under paragraph (1) for the reinsurance cov-
erage shall become final and shall be included
by the Board in the plan of operation under
section 902 for the reinsurance coverage pro-
vided by the Corporation.
‘‘(6) ADJUSTMENTS OF THE RATES.—Any ad-
justment of the rates for the primary insurance cov-
erages and the methodologies used in developing the
rates for the reinsurance coverage shall be developed
by the Board of the Corporation under section 903
and approved by the Independent Board according
to the process described in this subsection.
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‘‘(e) CONSULTATION.—The Independent Board shall
consult risk assessment experts at the United States Geo-
logical Survey (or its designated successor agency), the
National Oceanic and Atmospheric Administration (or its
designated successor agency), the National Academy of
Sciences, and similar public and private scientific groups
to ensure the accuracy of natural disaster risk models and
the geographic rating territories used in developing and
approving the actuarial rates under this paragraph.
‘‘SEC. 905. PARTICIPATION OF STATE INSURANCE REGU-
LATORS.
‘‘(a) INFORMATIONAL FILINGS.—
‘‘(1) ITEMS TO FILE.—The Board shall file with
each State insurance regulator information copies of
the initial material and future revisions to the fol-
lowing items:
‘‘(A) The rates charged for the primary
coverage issued by the Corporation under sub-
title B.
‘‘(B) Any insurance forms or polices and
subsequent revisions that describe the terms or
conditions of the insurance coverages issued or
provided by the Corporation.
‘‘(2) NOT SUBJECT TO APPROVAL.—Except as
provided in paragraph (3), none of the items submit-
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ted to the State insurance regulators under para-
graph (1) shall be subject to the approval of such
State insurance regulators.
‘‘(3) FILING OF DEVIATIONS.—
‘‘(A) GENERAL
AUTHORITY.—Subject to
the limitation in subparagraph (B), private in-
surers participating as service providers of the
primary insurance coverages under section
912(b) may use rates which deviate from those
established by the Corporation.
‘‘(B) DEVIATIONS
LIMITED
TO
INSURER
COSTS.—The rate deviations described in sub-
paragraph (A) shall be based only on the pri-
vate insurers difference in cost from those used
by the Corporation for calculating that portion
of the rate filed by the Corporation under para-
graph (1)(A) which compensate the private in-
surer for its costs, including administrative ex-
penses, agent commissions, and taxes.
‘‘(C) STATE
REQUIREMENTS.—The rate
deviations described in this paragraph shall be
subject to any applicable State requirement for
the filing of property insurance rates.
‘‘(b) CLAIMS SETTLEMENT.—Inquiries and com-
plaints dealing with claims settlement practices related to
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the insurance coverages issued or provided by the Cor-
poration, including those brought to the attention of a
State insurance regulator, are to be handled by the Cor-
poration in accordance with the plan of operation under
section 902.
‘‘(c) STATE PREMIUM TAXES.—States may assess in-
surance premium taxes on the insurance policies issued
under section 911 by the Corporation, except that a State
shall not charge a premium tax greater than the premium
taxes assessed by the State for the standard residential
property insurance contracts charged by domestic private
insurers.
‘‘(d) STATE FUNDS.—The Corporation shall not par-
ticipate in any State guaranty insurance fund or any State
insurance pool. Policyholders of the Corporation shall not
have claims against any State guaranty insurance fund for
purposes of the insurance coverages issued or provided by
the Corporation.
‘‘(e) STATE REQUIRED DISASTER INSURANCE POLI-
CIES.—A private insurer acting as a service provider of
primary insurance coverages under subtitle B shall not be
required by any State to sell insurance coverages or par-
ticipate in any program which provides insurance for
earthquakes, volcanic eruptions, tsunamis, or hurricanes
in amounts greater than provided by the primary insur-
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ance coverages issued by the Corporation for which such
private insurer acts as a service provider.
‘‘SEC. 906. TRUST ACCOUNTS.
‘‘(a) PRIMARY INSURANCE COVERAGE TRUST AC-
COUNT.—
‘‘(1) ESTABLISHMENT.—The Corporation shall
establish and maintain a primary insurance coverage
trust account (hereinafter in this Act referred to as
the ‘‘primary account’’) to hold funds in trust gen-
erated through the primary insurance coverages de-
scribed in subtitle B.
‘‘(2) ACCOUNT
DEPOSITS.—Except for the
amount set aside for the Mitigation Account under
section 1004(b), the portion of the premiums col-
lected by private insurers servicing the primary in-
surance coverage policies described in subtitle B
which is due the Corporation, plus any interest in-
come accrued on such premiums, shall be deposited
in the primary account.
‘‘(3) PAYMENT OF CLAIMS.—From amounts in
the primary account, the Corporation shall only pay
qualifying claims and loss adjustment expenses, as
described in section 914(d), to private insurers act-
ing as service providers of the primary insurance
coverages
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‘‘(b) REINSURANCE COVERAGE TRUST ACCOUNT.—
‘‘(1) ESTABLISHMENT.—The Corporation shall
establish and maintain a reinsurance coverage trust
account (hereinafter in this Act referred to as the
‘‘reinsurance account’’) to hold funds in trust gen-
erated through the reinsurance coverage described in
subtitle C.
‘‘(2) ACCOUNT
DEPOSITS.—Except for the
amount set aside for the Mitigation Account under
section 1004(b), the premiums paid by private insur-
ers which purchased the reinsurance coverage policy
described in subtitle C, plus any interest income ac-
crued on such premiums, shall be deposited in the
reinsurance account.
‘‘(3) PAYMENT OF CLAIMS.—From amounts in
the reinsurance account, the Corporation shall pay
qualifying claims, as described in section 922(c), to
private insurers which purchased the reinsurance
coverage.
‘‘(c) INVESTMENTS.—
‘‘(1) GENERAL AUTHORITY.—The Board of the
Corporation shall invest amounts in the primary ac-
count and the reinsurance account not required to
meet current financial commitments as the Board
sees appropriate.