(2) Although private sector insurance is cur-
rently available to spread some catastrophe-related 
losses throughout the Nation and internationally, 
most experts believe there will be significant insur-
ance and reinsurance shortages, resulting in dra-
matic rate increases for consumers and businesses, 
and the unavailability of catastrophe insurance. 
(3) The Federal Government has provided and 
will continue to provide billions of dollars and re-
sources to pay for losses from catastrophes, includ-
ing hurricanes, volcanic eruptions, tsunamis, tor-
nados, and other disasters, at huge costs to Amer-
ican taxpayers. 
(4) The Federal Government has a critical in-
terest in ensuring appropriate and fiscally respon-
sible risk management of catastrophes. Mortgages 
require reliable property insurance, and the unavail-
ability of reliable property insurance would make 
most real estate transactions impossible. In addition, 
the public health, safety, and welfare demand that 
structures damaged or destroyed in a catastrophe be 
reconstructed as soon as possible. Therefore, the in-
ability of the private sector insurance and reinsur-
ance markets to maintain sufficient capacity to en-
able Americans to obtain property insurance cov-
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erage in the private sector endangers the national 
economy and the public health, safety, and welfare. 
(5) Multiple proposals have been introduced in 
the United States Congress over the past decade to 
address catastrophic risk insurance, including the 
creation of a national catastrophic reinsurance fund 
and the revision of the Federal tax code to allow in-
surers to use tax-deferred catastrophe funds, yet 
Congress has failed to act on any of these proposals. 
(6) To the extent the United States faces high 
risks from catastrophe exposure, essential technical 
information on financial structures and innovations 
in the catastrophe insurance market is needed. 
(7) The most efficient and effective approach to 
assessing the catastrophe insurance problem in the 
public policy context is to establish a bipartisan com-
mission of experts to study the management of cata-
strophic disaster risk, and to require such commis-
sion to timely report its recommendations to Con-
gress so that Congress can quickly craft a solution 
to protect the American people. 
SEC. 3. ESTABLISHMENT. 
There is established a bipartisan Commission on Cat-
astrophic Disaster Risk and Insurance (in this Act re-
ferred to as the ‘‘Commission’’). 
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SEC. 4. MEMBERSHIP. 
(a) MEMBERS.—The Commission shall be composed 
of the following: 
(1) The Director of the Federal Emergency 
Management Agency or a designee of the Director. 
(2) The Administrator of the National Oceanic 
and Atmospheric Administration or a designee of the 
Administrator. 
(3) 12 additional members or their designees of 
whom one shall be— 
(A) a representative of a consumer group; 
(B) a representative of a primary insur-
ance company; 
(C) a representative of a reinsurance com-
pany; 
(D) an independent insurance agent with 
experience in writing property and casualty in-
surance policies; 
(E) a State insurance regulator; 
(F) a State emergency operations official; 
(G) a scientist; 
(H) a faculty member of an accredited uni-
versity with experience in risk management; 
(I) a member of nationally recognized 
think tank with experience in risk management; 
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(J) a homebuilder with experience in struc-
tural engineering; 
(K) a mortgage lender; and 
(L) a nationally recognized expert in anti-
trust law. 
(b) MANNER OF APPOINTMENT.— 
(1) IN GENERAL.—Any member of the Commis-
sion described under subsection (a)(3) shall be ap-
pointed only upon unanimous agreement of— 
(A) the majority leader of the Senate; 
(B) the minority leader of the Senate; 
(C) the Speaker of the House of Rep-
resentatives; and 
(D) the minority leader of the House of 
Representatives. 
(2) CONSULTATION.—In making any appoint-
ment under paragraph (1), each individual described 
in paragraph (1) shall consult with the President. 
(c) ELIGIBILITY LIMITATION.—Except as provided in 
subsection (a), no member or officer of the Congress, or 
other member or officer of the Executive Branch of the 
United States Government or any State government may 
be appointed to be a member of the Commission. 
(d) PERIOD OF APPOINTMENT.— 
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(1) IN GENERAL.—Each member of the Com-
mission shall be appointed for the life of the Com-
mission. 
(2) VACANCIES.—A vacancy on the Commission 
shall not affect its powers, but shall be filled in the 
same manner as the original appointment was made. 
(e) QUORUM.— 
(1) MAJORITY.—A majority of the members of 
the Commission shall constitute a quorum, but a 
lesser number may hold hearings. 
(2) APPROVAL ACTIONS.—All recommendations 
and reports of the Commission required by this Act 
shall be approved only by a majority vote of a 
quorum of the Commission. 
(f) CHAIRPERSON.—The majority leader of the Sen-
ate, the minority leader of the Senate, the Speaker of the 
House of Representatives, and the minority leader of the 
House of Representatives shall jointly select 1 member ap-
pointed pursuant to subsection (a) to serve as the Chair-
person of the Commission. 
(g) MEETINGS.—The Council shall meet at the call 
of its Chairperson or a majority of its members at any 
time. 
SEC. 5. DUTIES OF THE COMMISSION. 
The Commission shall— 
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