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members at the Corporation’s initial organiza-
tion meeting.
‘‘(B) DUTIES.—The administrator shall
coordinate the following activities of the Cor-
poration:
‘‘(i) Hiring of temporary staff.
‘‘(ii) Obtaining office space.
‘‘(iii) Contracting with consultants
and entities.
‘‘(iv) Managing the election of the ini-
tial Board of Directors.
‘‘(v) Collecting the start-up loans de-
scribed in paragraph (2).
‘‘(C) TERMINATION.—The activities of the
administrator shall terminate when the Board
of the Directors for the Corporation has been
selected.
‘‘(2) START-UP LOANS.—
‘‘(A) IN GENERAL.—Start-up administra-
tive costs of the Corporation shall be paid from
loans received from the private insurers partici-
pating as members of the Corporation.
‘‘(B) AMOUNT.—The amount of start-up
loans received from private insurers shall be in
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proportion to each participating insurers’ coun-
trywide subject net written premium.
‘‘(C) REPAYMENT.—Within 36 months
after the Corporation is established under sub-
section (a), or such later time when sufficient
funds are available, all start-up loans received
from private insurers under this paragraph
shall be repaid with interest by the Corporation
from amounts in the trust accounts established
in section 906.
‘‘(d) BOARD OF DIRECTORS.—
‘‘(1) GOVERNANCE.—The Corporation shall be
governed by a 15-member Board of Directors (here-
inafter in this title referred to as the ‘‘Board’’).
Each Director of the Board shall have one vote and
the Board shall set policy and decide all matters by
a simple majority of the votes cast. The Board shall
develop and approve the plan of operation described
in section 902 and shall be responsible for the oper-
ation and management of the Corporation.
‘‘(2) SELECTION OF DIRECTORS.—The 15 Di-
rectors of the Board shall be selected as follows:
‘‘(A) INSURANCE DIRECTORS.—
‘‘(i) IN
GENERAL.—Nine insurance
Directors shall be elected by the members
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of the Corporation with each member hav-
ing one vote, except as provided in clause
(iii). The insurance Directors shall reflect
an equitable cross-section of the private in-
surers participating as members of the
Corporation in accordance with this sub-
paragraph. No private insurer may have
more than one of its employees serving on
the Board.
‘‘(ii) SPECIAL
CLASSES
OF
INSUR-
ERS.—For as long as the Corporation is in
existence, 3 of the Directors shall rep-
resent special classes of insurers. Each of
the following special classes of insurers
shall be represented:
‘‘(I) Reinsurers which write pri-
marily reinsurance.
‘‘(II) Small providers of direct in-
surance that write primarily in per-
sonal lines of insurance in less than
10 States.
‘‘(III) Commercial insurers which
write primarily commercial insurance
lines throughout the United States.
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‘‘(iii) ELECTION BASED ON PREMIUM
VOLUME.—Three insurance Directors shall
be elected based on the premium volume
weighting criteria described as follows:
‘‘(I) For the initial election of the
3 Directors under this clause, the vote
of each private insurer serving as a
member of the Corporation shall be
weighted in proportion to such insur-
er’s countrywide subject net written
premium in relationship to the coun-
trywide subject net written premium
for all private insurers serving as a
member.
‘‘(II) For the subsequent election
of the 3 Directors under this clause,
the vote of each private insurer serv-
ing as a member of the Corporation
shall be weighted as its proportion of
all premium collected by all participat-
ing providers of the primary insurance
coverages described in subtitle B and
the premium paid by all purchasers of
the reinsurance coverage provided by
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the Corporation pursuant to subtitle
C.
‘‘(III) For each election held to
select any 1 of the 3 Directors elected
under this clause, private insurers can
cast their vote for only 1 candidate.
‘‘(iv) AT LARGE ELECTION.—The re-
maining 3 insurance Directors shall be
elected at large by the private insurers
participating as members of the Corpora-
tion.
‘‘(B) NON-INSURANCE DIRECTORS.—With-
in 180 days of the election of the insurance Di-
rectors under subparagraph (A), 6 non-insur-
ance Directors shall be nominated by the 9 in-
surance Directors and shall be elected by the
members of the Corporation. Each of the fol-
lowing interests shall be represented by at least
1, but not more than 2, of the 6 non-insurance
Directors elected:
‘‘(i) Insurance agents or brokers.
‘‘(ii) State insurance regulators.
‘‘(iii) Risk assessment experts who are
members of the National Academy of
Sciences.
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section (b) and under the direction of its Board of
Directors as described in subsection (d).
‘‘(2) GENERAL POWERS.—Upon selection of the
9 insurance Directors described in subsection
(d)(2)(A), the Corporation shall be empowered to
take all necessary and appropriate actions to imple-
ment this title, including hiring staff, making con-
tracts, and paying the salaries and expenses of em-
ployees with funds from start-up loans described in
subsection (c)(2) and the trust accounts described in
section 906.
‘‘(3) SPECIFIC POWERS.—Consistent with the
plan of operation developed under section 902, the
Corporation, under the direction of its Board, shall
have the power to—
‘‘(A) provide the primary insurance cov-
erages described in subtitle B and provide the
reinsurance coverage described in subtitle C;
‘‘(B) manage the trust accounts described
in section 906;
‘‘(C) raise funds by issuing obligations in
the private market, provided that such obliga-
tions shall not carry the full faith and credit of
the United States; and