I 
118TH CONGRESS 
2D SESSION 
H. R. 6944 
To require the Secretary of the Treasury to establish a catastrophic property 
loss reinsurance program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 10, 2024 
Mr. SCHIFF (for himself, Ms. TLAIB, Mr. MULLIN, Ms. SALINAS, Ms. HOYLE 
of Oregon, Ms. LOFGREN, and Ms. BROWNLEY) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To require the Secretary of the Treasury to establish a 
catastrophic property loss reinsurance program, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Incorporating National 
Support for Unprecedented Risks and Emergencies Act’’ 
or the ‘‘INSURE Act’’. 
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SEC. 2. CATASTROPHIC PROPERTY LOSS REINSURANCE 
PROGRAM. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall, not later than 4 years after the date of the enact-
ment of this section, establish a catastrophic property loss 
reinsurance program (in this Act referred to as the ‘‘Pro-
gram’’) to provide reinsurance for qualifying primary in-
surance companies. 
(b) ELIGIBILITY.—An insurer is qualified to partici-
pate in the Program established by the Secretary under 
this section if such insurer— 
(1) offers an all-perils property insurance policy 
for— 
(A) residential property insurance policies; 
or 
(B) commercial property insurance policies; 
and 
(2) offers a loss prevention partnership with the 
policyholder to encourage investments and activities 
that reduce insured and economic losses from a ca-
tastrophe peril. 
(c) CONSULTATION.—The Secretary may contract 
with reinsurance brokers and consultants to assist the 
Secretary in the design and management of the Program. 
(d) PROGRAM PHASE-IN TIMELINE.—The Secretary 
shall— 
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(1) not later than January 1 of the year begin-
ning 4 years after the date of the enactment of this 
section, operate the Program for the peril of flood; 
(2) not later than January 1 of the year begin-
ning 5 years after the date of the enactment of this 
section, operate the Program for the perils of wind 
and hurricane; 
(3) not later than January 1 of the year begin-
ning 6 years after the date of the enactment of this 
section, operate the Program for the perils of severe 
convective storm and wildfire; and 
(4) not later than the earlier of January 1 of 
the year beginning 8 years after the date of the en-
actment of this section or the date on which the fea-
sibility report described in paragraph (2) of section 
4 is submitted, operate the Program for the peril of 
earthquake. 
(e) NATIONAL FLOOD INSURANCE PROGRAM DIS-
CONTINUATION.—On the date that the Secretary begins 
operating the Program with respect to the peril of flood, 
the Administrator of the Federal Emergency Management 
Agency shall— 
(1) discontinue the issuance and renewal of 
policies under the national flood insurance program; 
and 
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(2) continue to operate the national flood insur-
ance program until— 
(A) policies under such program issued 
prior to the discontinuation date under para-
graph (1) have expired; and 
(B) all claims on policies under such pro-
gram issued prior to the discontinuation date 
have been closed. 
(f) THRESHOLD FOR PAYMENT.— 
(1) IN GENERAL.—The Secretary shall, after 
consulting with the advisory committee established 
under subsection (i), establish a financial threshold 
at which a participating insurer may receive 
amounts from the fund established under subsection 
(j). 
(2) THRESHOLD CALCULATION.—The threshold 
established under paragraph (1) shall be an amount 
not greater than 40 percent of the probable max-
imum loss of an individual participating insurer for 
each catastrophe peril included in the Program. 
(3) 
CONSIDERATIONS.—In 
establishing 
the 
threshold described in paragraph (1), the Secretary 
shall consider— 
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(A) the amount of reinsurance necessary to 
meaningfully reduce the cost to the partici-
pating insurer to— 
(i) provide coverage for catastrophe 
perils covered by the Program; and 
(ii) encourage States to require par-
ticipating insurers to offer an all-perils 
property insurance policy; 
(B) the levels of primary insurer retention 
and private reinsurance market capacity nec-
essary to— 
(i) promote stable and competitive 
markets for catastrophe reinsurance; and 
(ii) incentivize the establishment by 
private parties of capital market alter-
natives to reinsurance, for example the cre-
ation of a market for catastrophe bonds; 
and 
(C) the role of the Program in promoting 
investments by participating insurers that 
would be aimed at decreasing losses. 
(g) PREMIUMS.— 
(1) IN GENERAL.—The Secretary shall require 
participating insurers to pay a premium to the Sec-
retary each quarter. 
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(2) PREMIUM AMOUNT CONSIDERATIONS.—The 
amount of the premium required under paragraph 
(1) shall reflect only the following considerations: 
(A) The expected average annual losses for 
the participating insurer, as calculated by the 
Secretary based on the exposure of such partici-
pating insurer. 
(B) The administrative costs to administer 
and manage the Program. 
(3) CONSULTATION.—The Secretary shall con-
sult with the advisory committee established under 
subsection (i) when establishing premium amounts 
and may contract for services to assist in the estab-
lishment of premium amounts. 
(4) MINIMUM PREMIUM REQUIRED.—The Sec-
retary may not establish any premium that is less 
than 50 percent of the amount equal to the sum of 
the— 
(A) expected average annual losses for the 
participating insurer, as calculated by the Sec-
retary based on the exposure of such partici-
pating insurer; and 
(B) administrative costs to administer and 
manage the Program. 
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(5) PREMIUM
ADJUSTMENTS.—The Secretary 
shall adjust premiums each quarter for each partici-
pating insurer to reflect material changes in the ex-
posure of such insurer. 
(6) PREMIUM INCREASES.—Excluding any ad-
justment made under paragraph (5), the Secretary 
may increase premiums for a participating insurer 
not more than 7 percent annually. 
(h) LOSS PREVENTION PARTNERSHIPS.— 
(1) IN GENERAL.—The Secretary, in coordina-
tion with the advisory committee established under 
subsection (i), State insurance agencies, and State 
and Federal emergency management agencies, shall 
develop a list of activities that qualify as loss preven-
tion partnerships for purposes of this section. The 
list may include the following activities: 
(A) 
Participating 
insurers 
providing 
amounts to insured parties to cover the cost, in 
whole or in part, of activities aimed at reducing 
losses to the insured party. 
(B) Participating insurers making coverage 
contingent upon the implementation of a loss 
prevention activity by a potential insured party. 
(2) ACTIVITIES
EXCLUDED
FROM
LOSS
PRE-
VENTION PARTNERSHIPS.—The Secretary, State in-
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surance agencies, and State and Federal emergency 
management may not include the following activities 
as loss prevention partnerships for purposes of this 
section: 
(A) The provision of an insurance pre-
mium discount for an investment by an insured 
party or potential insured party in an activity 
designed to reduce the losses of the partici-
pating insurer, absent an investment by the 
participating insurer. 
(B) The provision of general information 
about loss prevention. 
(i) ADVISORY COMMITTEE.— 
(1) IN GENERAL.—The Secretary shall establish 
an advisory committee to advise the Secretary with 
respect to the Program. 
(2) MEMBERSHIP.—The committee established 
in paragraph (1) shall include the following mem-
bers: 
(A) 5 members representing consumer or-
ganizations engaged in fair housing, insurance, 
environmental, climate, and technology advo-
cacy. 
(B) 3 members selected from individual 
primary insurance companies selling property 
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insurance policies, including one large national 
insurer, one medium sized regional insurer, and 
one small insurer. 
(C) 1 global reinsurer active in United 
States property insurance markets. 
(D) 1 domestic-focused reinsurer active in 
United States property insurance markets. 
(E) 2 insurance regulators from a State, 
Territory, or the District of Colombia. 
(F) 2 State legislators who serve on State 
legislative committees with oversight over insur-
ance matters and who are not employed directly 
or indirectly by any person or organization en-
gaged in the business of insurance. 
(G) 2 members selected from independent 
insurance agents who serve traditionally under- 
served areas. 
(H) 1 representative from a mortgage 
lender. 
(I) 1 representative from a bank. 
(J) 1 representative from each of the fol-
lowing agencies: 
(i) The Department of Housing and 
Urban Development. 
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(ii) The Department of Health and 
Human Services. 
(iii) The Federal Housing Finance 
Agency. 
(iv) The Department of Veterans Af-
fairs. 
(v) The Department of Agriculture. 
(vi) The Federal Emergency Manage-
ment Agency. 
(vii) The Office of Management and 
Budget. 
(viii) The Environmental Protection 
Agency. 
(K) 1 representative from the Financial 
Stability Oversight Council. 
(j) FEDERAL CATASTROPHE REINSURANCE FUND.— 
(1) IN GENERAL.—The Secretary shall establish 
the Federal Catastrophe Reinsurance Fund (in this 
section referred to as the ‘‘Fund’’) to hold and in-
vest premiums paid by participating insurers. 
(2) ISSUANCE OF NOTES AND BONDS.— 
(A) IN GENERAL.—If amounts in the Fund 
are insufficient to pay obligations to partici-
pating insurers, the Secretary shall issue notes 
and bonds under this paragraph, the proceeds 
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of which shall be used for payment obligations 
to participating insurers. 
(B) TERMS.—Notes and bonds issued 
under this paragraph shall be in such form and 
denominations, and shall be subject to such 
terms and conditions of issue, conversion, re-
demption, maturation, and payment as the Sec-
retary may prescribe and shall be fully and un-
conditionally guaranteed both as to interest and 
principal by the United States, and such guar-
anty shall be expressed on the face of each 
bond. 
(C) INTEREST.—Notes and bonds issued 
under this paragraph shall bear interest at a 
rate not less than the current average yield on 
outstanding market obligations of the United 
States of comparable maturity during the 
month preceding the issuance of the obligation 
as determined by the Secretary. 
(D) TREATMENT.—All notes and bonds 
issued under this paragraph, and the interest 
on credits with respect to such obligations, shall 
not be subject to taxation by any State, county, 
municipality, or local taxing authority. 
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(E) SATISFACTION.—The Secretary shall 
utilize investment revenue from the Fund to 
satisfy any notes or bonds issued under this 
paragraph. 
(k) DATA COLLECTION.— 
(1) IN GENERAL.—The Secretary shall— 
(A) establish a statistical plan for quar-
terly reporting by participating insurers of pol-
icy-level claim transaction data; 
(B) consult with the advisory committee 
established under subsection (i) and the Na-
tional Association of Insurance Commissioners 
with respect to— 
(i) the contents of the statistical plan; 
and 
(ii) the method of data collection; 
(C) collect quarterly reports from each par-
ticipating insurer that include— 
(i) a description of all exposures cov-
ered by the Program at the time of the 
submission of the report; and 
(ii) a list of the type and amount of 
all claims made in the previous quarter; 
(D) in a manner that does not risk public 
disclosure of personally identifiable information 
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of policyholders, provide the quarterly reports 
received under subparagraph (C) to— 
(i) the Director of the Office of Fi-
nancial Research to assess risk to— 
(I) the financial stability of the 
United States; and 
(II) international financial sys-
tems arising from United States prop-
erty insurance markets, including lack 
of available property insurance or in-
adequate coverage from property in-
surance; 
(ii) the Director of the Federal Insur-
ance Office to assess the risks to the finan-
cial stability arising from under-insurance 
of property insurance policies covering ca-
tastrophe perils, including in traditionally 
underserved insurance markets; 
(iii) the head of the department of in-
surance in each State; and 
(iv) any other Federal, State, or local 
government entity that, as determined by 
the Secretary, is related to— 
(I) catastrophe loss prevention, 
mitigation, or recovery; or 
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(II) the promotion of competitive 
property insurance markets; and 
(E) make the data collected under this 
paragraph available online in a manner that 
does not risk public disclosure of personally 
identifiable information of policyholders. 
(2) 
CONTRACTING
WITH
A
STATISTICAL 
AGENT.— 
(A) IN
GENERAL.—The Secretary shall 
contract with a statistical agent via a competi-
tive bidding process to collect and review the 
data under this subsection for accuracy and 
completeness. 
(B) OFFICE OF FINANCIAL RESEARCH AS 
THE STATISTICAL AGENT.—If the Secretary is 
unable to identify a qualified statistical agent 
for collection of data under this subsection, the 
Director of the Office of Financial Research 
shall establish a data collection infrastructure 
for collection of such data. 
SEC. 3. GRANT PROGRAM TO PROMOTE LOSS PREVENTION 
INVESTMENTS. 
(a) IN GENERAL.—The Secretary shall establish a 
grant program to provide grants to States to— 
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(1) incentivize participating insurers, policy-
holders, and State and local governments to provide 
funding for investments in activities aimed at reduc-
ing losses to insurance providers; and 
(2) encourage States to mandate that insurers 
offer an all-perils property insurance policy. 
(b) AMOUNT OF GRANTS.—When providing amounts 
to States under the grant program established under sub-
section (a), the Secretary shall— 
(1) solicit proposals from States describing the 
ways in which States will use any amounts provided 
to improve the availability and affordability of all- 
perils property insurance policies through invest-
ments in loss mitigation and risk management; 
(2) prioritize grants that yield the greatest re-
turn on investment for loss prevention and risk miti-
gation which benefit or target low and moderate in-
come consumers and small businesses; and 
(3) prioritize the awarding of grants to States 
with the strongest building codes and which require 
property insurance policies that provide coverage for 
the catastrophe perils covered by the Program with-
out excessively large deductibles as determined by 
the Secretary. 
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(c) LOW AND MODERATE INCOME CONSUMERS DE-
FINED.—In this section, the term ‘‘low and moderate in-
come consumers’’ means a consumer with an income of 
less than 120 percent of the median household income for 
the community. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section— 
(1) $50,000,000,000 in 2026; 
(2) $55,000,000,000 in 2027; 
(3) $60,000,000,000 in 2028; 
(4) $65,000,000,000 in 2029; and 
(5) $70,000,000,000 in 2030. 
SEC. 4. REPORTS ON RELOCATION FUND AND EARTH-
QUAKE COVERAGE. 
The Secretary shall not later than— 
(1) 2 years after the date of the enactment of 
this Act, submit to Congress a report on the feasi-
bility of establishing a fund to relocate homes and 
businesses that have become uninsurable due to ca-
tastrophe perils; and 
(2) 3 years after the date of the enactment of 
this Act, submit to Congress a report on the feasi-
bility of including earthquakes as a peril covered 
under the all-perils property insurance policy. 
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SEC. 5. ASSISTANCE FOR LOW-INCOME CONSUMERS. 
(a) IN GENERAL.—The Secretary shall, as amounts 
appropriated under this section allow, establish a grant 
program for States to provide financial assistance to low- 
income consumers for whom residential property insur-
ance— 
(1) is required; and 
(2) represents a significant portion of the 
household income of such consumers. 
(b) APPLICATION.—In applying for a grant under 
this section, a State shall demonstrate how the State will 
use grant amounts in the order of priority under sub-
section (c). 
(c) ORDER OF PRIORITY FOR GRANT AMOUNTS.—A 
State receiving grant amounts under this section shall 
prioritize the use of such amounts in the following man-
ner: 
(1) The use of grant amounts for risk reduction 
as the means to reduce the primary insurance pre-
mium for the consumer. 
(2) The use of grant amounts to relocate the 
homeowner from an uninsurable property. 
(3) The use of grant amounts as cash assist-
ance to pay a portion of the insurance premium. 
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(d) CONSULTATION.—When establishing the grant 
program under subsection (a), the Secretary shall consult 
with the— 
(1) Secretary of Housing and Urban Develop-
ment; 
(2) Director of the Federal Housing Finance 
Agency; 
(3) Secretary of Veterans Affairs; 
(4) Assistant Secretary for Housing and Fed-
eral Housing Commissioner for the Federal Housing 
Administration; and 
(5) Secretary of Agriculture. 
(e) REPORT.—The Secretary shall, not later than 2 
years after the date of the enactment of this section and 
each year thereafter, publish a report that analyzes which 
risk reduction investments under subsection (c)(1) are 
most cost-effective, broken down by State and by type of 
catastrophe peril. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized 
to 
be 
appropriated 
to 
the 
Secretary 
$50,000,000,000 annually to carry out this section. 
SEC. 6. LONG-TERM POLICY PILOT PROGRAM. 
(a) IN GENERAL.—The Secretary shall, in consulta-
tion with States and the National Association of Insurance 
Commissioners, establish a pilot program for all-perils 
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property insurance policies with a policy term of at least 
5 years (in this section referred to as a ‘‘multi-year pol-
icy’’). 
(b) PREMIUM AND POLICY CONDITIONS.—An insurer 
who participates in the pilot program established under 
this section may— 
(1) increase premiums based on— 
(A) price indexes of construction costs; 
(B) changes in home value; and 
(C) optional coverages selected by the pol-
icyholder; 
(2) not increase premiums based on a change in 
the assessment by the insurer of the catastrophe 
peril risks associated with the insured property; 
(3) require property maintenance consistent 
with the condition of the property at time of initial 
policy issuance; and 
(4) require loss mitigation investment partner-
ships as a condition for the multi-year policy. 
(c) ACTIONS BY THE POLICYHOLDER.— 
(1) POLICY CONTINUATION.—With the agree-
ment of the insurer, a consumer purchasing the 
property during the term of the multi-year policy 
may continue the policy for the remainder of the 
term. 
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(2) ELECTION TO NEW INSURER.—If the policy-
holder elects to move to a new insurer during the 
term of the multi-year policy, the new insurer may 
pay the pro-rata share of the loss mitigation invest-
ment for the policyholder. 
(3) CANCELLATION BY POLICYHOLDER.—If the 
policyholder is the recipient of any funds for loss 
prevention property improvements from the insurer, 
Federal, State, local government, or other source 
and the policyholder cancels the policy before the 
end of the multi-year policy term, the policyholder 
shall return a pro-rata share of such improvement to 
the source of the funds. 
SEC. 7. DEFINITIONS. 
In this Act: 
(1) ALL-PERILS
PROPERTY
INSURANCE
POL-
ICY.—The term ‘‘all-perils property insurance pol-
icy’’ means a property insurance policy approved by 
a State which includes coverage for catastrophe per-
ils as such perils are added to the Program. 
(2) CATASTROPHE
PERIL.—The term ‘‘catas-
trophe peril’’ means the damage caused by— 
(A) wind, hurricane, wildfire, severe con-
vective storm, and flood as they are added to 
the Program under section 2(d); 
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(B) earthquake, conditioned on the report 
under section 4(2); and 
(C) any other peril as determined by the 
Secretary and added to the Program. 
(3) ENGAGED
IN
THE
BUSINESS
OF
INSUR-
ANCE.—The term ‘‘engaged in the business of insur-
ance’’ means a person or entity that is subject to 
oversight by a State insurance department. 
(4) INSURER.—The term ‘‘insurer’’— 
(A) means an admitted or non-admitted in-
surance company licensed or authorized to sell 
primary property insurance by State insurance 
regulators; and 
(B) does not include a reinsurance com-
pany or a captive insurance company. 
(5) PARTICIPATING INSURER.—The term ‘‘par-
ticipating insurer’’ means an insurer that is partici-
pating in the Program. 
(6) PROPERTY INSURANCE POLICY.—The term 
‘‘property insurance policy’’ means a contract of in-
surance, through a policy form approved by a State 
insurance department, that provides, among other 
coverages, coverage for physical damage to residen-
tial or commercial property. 
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(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(8) STATISTICAL PLAN.—The term ‘‘statistical 
plan’’ means— 
(A) a description of the data elements to 
be reported; and 
(B) the instructions and procedures for ac-
curately reporting data. 
Æ 
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