I 
113TH CONGRESS 
1ST SESSION 
H. R. 737 
To establish a national catastrophic risk consortium to ensure the availability 
and affordability of homeowners’ insurance coverage for catastrophic events. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 14, 2013 
Ms. WILSON of Florida (for herself and Ms. BROWN of Florida) introduced 
the following bill; which was referred to the Committee on Financial Services 
A BILL 
To establish a national catastrophic risk consortium to en-
sure the availability and affordability of homeowners’ 
insurance coverage for catastrophic events. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Homeowners’ Defense Act of 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings and purposes. 
Sec. 3. Establishment; status; principal office; membership. 
Sec. 4. Functions. 
Sec. 5. Powers. 
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Sec. 6. Nonprofit entity; conflicts of interest; audits. 
Sec. 7. Management. 
Sec. 8. Staff; experts and consultants. 
Sec. 9. Federal liability. 
Sec. 10. Authorization of appropriations. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the United States has a history of cata-
strophic natural disasters, including hurricanes, tor-
nadoes, flood, fire, earthquakes, and volcanic erup-
tions; 
(2) although catastrophic natural disasters 
occur infrequently, they will continue to occur and 
are predictable; 
(3) such disasters generate large economic 
losses and a major component of those losses comes 
from damage and destruction to homes; 
(4) for the majority of Americans, their invest-
ment in their home represents their single biggest 
asset and the protection of that investment is para-
mount to economic and social stability; 
(5) the United States needs to take and support 
State actions to be better prepared for and better 
protected from catastrophes; 
(6) as the risk of catastrophic losses grows, so 
do the risks that any premiums collected by private 
insurers for extending coverage will be insufficient to 
cover future catastrophes, and private insurers, in 
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an effort to protect their shareholders and policy-
holders (in the case of mutually owned companies), 
have thus significantly raised premiums and cur-
tailed insurance coverage in States exposed to major 
catastrophes; 
(7) such effects on the insurance industry have 
been harmful to economic activity in States exposed 
to major catastrophes and have placed significant 
burdens on residents of such States; 
(8) Hurricanes Katrina, Rita, and Wilma 
struck the United States in 2005, causing over 
$200,000,000,000 in total economic losses, and in-
sured 
losses 
to 
homeowners 
in 
excess 
of 
$50,000,000,000; 
(9) while the total costs of Hurricane Sandy 
have not yet been calculated, Fitch Ratings, a global 
credit ratings agency, has estimated that insured 
losses will amount to between $20,000,000,000 and 
$25,000,000,000; 
(10) the Federal Government has provided and 
will continue to provide resources to pay for losses 
from future catastrophes; and 
(11) it is the proper role of the Federal Govern-
ment to prepare for and protect its citizens from ca-
tastrophes and to facilitate consumer protection, vic-
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tim assistance, and recovery, including financial re-
covery. 
(b) PURPOSES.—The purpose of this Act is to estab-
lish a national catastrophic risk consortium to ensure the 
availability and affordability of homeowners’ insurance 
coverage for catastrophic events. 
SEC. 3. ESTABLISHMENT; STATUS; PRINCIPAL OFFICE; 
MEMBERSHIP. 
(a) ESTABLISHMENT.—There is established an entity 
to be known as the ‘‘National Catastrophe Risk Consor-
tium’’ (in this Act referred to as the ‘‘Consortium’’). 
(b) STATUS.—The Consortium is not a department, 
agency, or instrumentality of the United States Govern-
ment. 
(c) PRINCIPAL OFFICE.—The principal office and 
place of business of the Consortium shall be such location 
within the United States determined by the Board of Di-
rectors to be the most advantageous for carrying out the 
purpose and functions of the Consortium. 
(d) MEMBERSHIP.—Any State that has established a 
reinsurance fund or has authorized the operation of a 
State residual insurance market entity, or State-sponsored 
provider of natural catastrophe insurance, shall be eligible 
to participate in the Consortium. 
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SEC. 4. FUNCTIONS. 
The Consortium shall— 
(1) work with all States, particularly those par-
ticipating in the Consortium, to gather and maintain 
an inventory of catastrophe risk obligations held by 
State reinsurance funds, State residual insurance 
market entities, and State-sponsored providers of 
natural catastrophe insurance; 
(2) at the discretion of the affected members 
and on a conduit basis, issue securities and other fi-
nancial instruments linked to the catastrophe risks 
insured or reinsured through members of the Con-
sortium in the capital markets; 
(3) coordinate reinsurance contracts between 
participating, qualified reinsurance funds and pri-
vate parties; 
(4) act as a centralized repository of State risk 
information that can be accessed by private-market 
participants seeking to participate in the trans-
actions described in paragraphs (2) and (3) of this 
section; 
(5) establish a catastrophe risk database to per-
form research and analysis that encourages stand-
ardization of the risk-linked securities market; 
(6) perform any other functions, other than as-
suming risk or incurring debt, that are deemed nec-
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