‘‘TITLE VIII—DISASTER
INSURANCE PROGRAM
‘‘Subtitle A—Insurance Program
‘‘SEC. 801. ESTABLISHMENT OF INSURANCE PROGRAM.
‘‘The National Disaster Insurance Corporation estab-
lished under subtitle B shall establish and carry out an
insurance program under this subtitle to provide coverage
to States against certain losses and costs arising from dis-
asters, which shall be funded solely by State premiums
and payments and shall operate on an actuarially sound
basis.
‘‘SEC. 802. TERMS AND CONDITIONS OF INSURANCE PRO-
GRAM.
‘‘(a) IN GENERAL.—The Corporation shall establish
the terms and conditions for the provision of disaster in-
surance under the disaster insurance program of the Cor-
poration, which shall include—
‘‘(1) the general terms and conditions of insur-
ance coverage;
‘‘(2) limitations on the scope and amounts of
coverage provided;
‘‘(3) the establishment, under section 804, of
appropriate annual premium charges;
‘‘(4) appropriate loss deductibles; and
‘‘(5) the methods by which proved and approved
claims for losses shall be adjusted and paid.
‘‘(b) OBJECTIVES.—In establishing the terms and
conditions under this section, the Corporation shall ensure
that the insurance program accomplishes the following ob-
jectives:
‘‘(1) 
RECOVERY
FROM
DISASTERS.—The
amount of coverage provided under the program
shall be sufficient to provide State participants with
amounts adequate for recovery from disasters.
‘‘(2) EQUITABLE DISTRIBUTION OF RISKS AND
COSTS.—The risks and costs of disasters shall be eq-
uitably distributed among the State participants.
‘‘(3) PARTICIPATION.—Participation in the pro-
gram by all States shall be encouraged.
‘‘(c) ASSISTANCE.—The terms and conditions of the
insurance program shall be established in consultation
with the Director of the Federal Emergency Management
Agency, the Disaster Insurance Advisory Committee under
section 826, and other relevant Federal agencies and shall
be effective only if approved by the Director and the Advi-
sory Committee.
‘‘SEC. 803. COVERAGE.
‘‘(a) IN GENERAL.—The insurance program shall
provide insurance coverage under this subtitle for each
participant in the Corporation. The initial coverage avail-
able under the program shall take effect on October 1,
1995.
‘‘(b) ELIGIBLE INSUREDS.—The insurance program
may provide insurance coverage only to participants and
each State shall be eligible to become a participant pursu-
ant to the requirements of section 821(d).
‘‘(c) SCOPE OF COVERAGE.—The insurance program
may provide coverage only for the following losses and
costs to a participant that arise from a disaster:
‘‘(1) LIFESAVING
MEASURES.—Costs of per-
forming any work or services essential to saving lives
and protecting and preserving property or public
health and safety, including—
‘‘(A) removing debris and wreckage;
‘‘(B) conducting search and rescue, and
providing emergency medical care, emergency
mass care, emergency shelter, food, water, med-
icine, and other essential needs, including move-
ment of supplies or persons;
‘‘(C) clearing roads and constructing tem-
porary bridges necessary to the performance of
emergency tasks and essential community serv-
ices;
‘‘(D) providing temporary facilities for
schools and other essential community services;
‘‘(E) demolishing unsafe structures that
endanger the public;
‘‘(F) warning of further risks and hazards;
‘‘(G) disseminating of public information
and assistance regarding health and safety
measures; and
‘‘(H) reducing immediate threats to life,
property, and public health and safety.
‘‘(2) DISTRIBUTION OF FOOD AND MEDICAL AS-
SISTANCE.—Costs of distributing or rendering food,
medicine, and other consumable supplies, and other
services and assistance to victims of the disaster.
‘‘(3) COORDINATION.—Costs of coordinating re-
lief efforts.
‘‘(4) TECHNICAL ADVICE.—Costs of obtaining
technical advice regarding—
‘‘(A) disaster management and control;
‘‘(B) performing essential community serv-
ices; and
‘‘(C) disseminating information regarding
public health and safety, issuing warnings of
risks and hazards.