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. 
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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for this section) is repealed.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-
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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 
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(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 
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