(2) the nature and limits of loss or damage that 
may be covered by such insurance, which shall in-
clude costs of property damage and loss, remedi-
ation, relocation (during remediation or perma-
nently), and rental of an alternative dwelling during 
remediation; 
(3) the classification, limitation, and rejection 
of any risks that may be appropriate; 
(4) appropriate minimum premiums; 
(5) appropriate loss-deductibles; 
(6) appropriate limits on aggregate liability 
under such coverage, based on the type of property 
insured; and 
(7) any other terms and conditions relating to 
insurance coverage or exclusion which may be nec-
essary to carry out the purposes of this title. 
SEC. 604. ESTIMATES OF PREMIUM RATES. 
The Director shall undertake and carry out such 
studies and investigations and receive or exchange such 
information as may be necessary to estimate, and shall 
from time to time estimate the following premium rates 
for toxic mold hazard insurance coverage under this title: 
(1) ACTUARIAL
RATES.—The risk premium 
rates that would be required to make such insurance 
available on an actuarial basis for any types and
classes of properties for which insurance coverage is 
available under section 602 and which— 
(A) are based on consideration of the risk 
involved and accepted actuarial principles; 
(B) include the applicable operating costs 
and allowances set forth in the schedules pre-
scribed under section 607 and reflected in such 
rates; and 
(C) include any administrative expenses of 
carrying out the insurance program under this 
title. 
(2) SUBSIDIZED
RATES.—The risk premium 
rates that— 
(A) are less than the rates estimated under 
paragraph (1); 
(B) would be reasonable; 
(C) would encourage prospective insureds 
to purchase toxic mold hazard insurance cov-
erage; 
(D) would be consistent with the purposes 
of this title; and 
(E) include any administrative expenses in-
curred in carrying out the insurance program 
under this title.
SEC. 605. ESTABLISHMENT OF CHARGEABLE PREMIUM 
RATES. 
(a) IN GENERAL.—On the basis of estimates made 
under section 604 and such other information as may be 
necessary, the Director shall from time to time, after con-
sultation with the interested parties (including the insur-
ance authorities of the States), prescribe by regulation— 
(1) chargeable premium rates for any types and 
classes of properties for which insurance coverage 
shall be available under section 602 (at less than the 
estimated risk premium rates under section 604(1), 
where necessary), and 
(2) the terms and conditions under which, and 
the areas within which, such rates shall apply. 
(b) FACTORS.—Such rates shall, insofar as prac-
ticable, be— 
(1) based on a consideration of the respective 
risks involved, including differences in risks due to 
construction types and materials, building systems, 
geology, climate, and other factors that may affect 
mold levels in buildings; 
(2)(A) adequate, on the basis of accepted actu-
arial principles, to provide reserves for anticipated 
losses; or 
(B) if less than such amount consistent with 
the objective of making toxic mold hazard insurance
coverage available where necessary at reasonable 
rates so as to encourage prospective insureds to pur-
chase such insurance and with the purposes of this 
title; 
(3) adequate to provide for any administrative 
expenses of the insurance programs under this title; 
and 
(4) stated so as to reflect the basis for such 
rates, including the differences (if any) between the 
estimated actuarial risk premium rates under section 
604(1) and the estimated subsidized risk premium 
rates under section 604(2). 
(c) FULL ACTUARIAL RATES FOR COMMUNITIES NOT 
IN COMPLIANCE WITH BUILDING INSPECTION, CERTIFI-
CATE OF OCCUPANCY, AND PUBLIC DISCLOSURE PROVI-
SIONS.—Subject only to the limitation under subsection 
(d), the chargeable rate with respect to any property that 
is located within a jurisdiction that the Director deter-
mines has not adopted adequate toxic mold control meas-
ures, with effective enforcement provisions, that the Direc-
tor determines are consistent with the model standards 
and techniques for inspection and certification of occu-
pancy issued under section 201 and with the model stand-
ards for public disclosure issued under section 202, shall 
not be less than the applicable estimated risk premium
rate for such area (or subdivision thereof) under section 
604(1), except that such premium rate for such properties 
shall be affordable and reasonably priced. 
(d) 
ANNUAL
LIMITATION
ON
PREMIUM
IN-
CREASES.—Notwithstanding any other provision of this 
title, the chargeable risk premium rates for toxic mold 
hazard insurance under this title for any properties within 
any single risk classification may not be increased by an 
amount that would result in the average of such rate in-
creases for properties within the risk classification during 
any 12-month period exceeding 10 percent of the average 
of the risk premium rates for properties within the risk 
classification upon the commencement of such 12-month 
period. 
(e) $200 MAXIMUM PREMIUM FOR SINGLE FAMILY 
DWELLINGS.—The chargeable risk premium rate for toxic 
mold hazard insurance under this title for a single family 
dwelling shall be affordable and reasonably priced. 
SEC. 606. NATIONAL TOXIC MOLD HAZARD INSURANCE 
FUND. 
(a) ESTABLISHMENT AND USES.—To carry out the 
toxic mold hazard insurance program under this title, the 
Director shall establish in the Treasury of the United 
States a National Toxic Mold Hazard Insurance Fund, 
which shall be an account separate from any other ac-
counts or funds available to the Director and shall be 
available as described in subsection (f), without fiscal year 
limitation (except as otherwise provided in this section)— 
(1) for making such payments as may, from 
time to time, be required under section 634; 
(2) to repay to the Secretary of the Treasury 
such sums as may be borrowed (together with inter-
est) pursuant to subsection (e); 
(3) to the extent approved in appropriation 
Acts, to pay any administrative expenses of the toxic 
mold hazard insurance program; and 
(4) for the purposes specified in subsection (d) 
under the conditions provided therein. 
(b) CREDITS.—The Fund shall be credited with— 
(1) any amounts borrowed under subsection (e); 
(2) any amounts as may be appropriated for 
the Fund; 
(3) interest which may be earned on invest-
ments of the Fund pursuant to subsection (c); 
(4) receipts from any other operations under 
this title (including premiums under the conditions 
specified in subsection (d)); and 
(5) such other amounts as may be credited to 
the Fund.
(c) INVESTMENT.—If the Director determines that 
the amounts in the Fund are in excess of current needs, 
the Director may request the investment of such amounts 
as the Director deems advisable by the Secretary of the 
Treasury in obligations issued or guaranteed by the 
United States. 
(d) FEDERAL OPERATION
OF PROGRAM.—In the 
event the Director makes a determination under section 
641 that operation of the toxic mold hazard insurance pro-
gram, in whole or in part, should be carried out through 
the facilities of the Federal Government, the Fund shall 
be available for all purposes incident thereto, including— 
(1) costs incurred in the adjustment and pay-
ment of any claims for losses, and 
(2) payment of applicable operating costs set 
forth in the schedules prescribed under section 607, 
for so long as the program is so carried out, and in such 
event any premiums paid shall be deposited by the Direc-
tor to the credit of the Fund. 
(e) BORROWING.— 
(1) AUTHORITY.—To the extent that the 
amounts in the Fund are insufficient to pay claims 
and expenses under the toxic mold hazard insurance 
program, the Director may issue such obligations of 
the Fund as may be necessary to cover the insuffi-
ciency and the Secretary of the Treasury shall pur-
chase any such obligations issued. 
(2) PUBLIC DEBT TRANSACTION.—For the pur-
pose of purchasing any such obligations, the Sec-
retary may use as a public debt transaction the pro-
ceeds from the sale of any securities issued under 
chapter 31 of title 31, United States Code, and the 
purposes for which securities are issued under such 
chapter are hereby extended to include any purchase 
by the Secretary of such obligations under this sub-
section. 
(3) CHARACTERISTICS OF OBLIGATIONS.—Obli-
gations issued under this subsection shall be in such 
forms and denominations, bear such maturities, bear 
interest at such rate, and be subject to such other 
terms and conditions, as the Secretary shall deter-
mine. 
(4) TREATMENT.—All redemptions, purchases, 
and sales by the Secretary of obligations under this 
subsection shall be treated as public debt trans-
actions of the United States. 
(f) AVAILABILITY.—The Fund shall be available, with 
respect to any fiscal year only to the extent approved in 
appropriation Acts; except that the Fund shall be available
for the purpose described in subsection (d)(1) without 
such approval. 
SEC. 607. OPERATING COSTS AND ALLOWANCES. 
(a) IN GENERAL.—The Director shall from time to 
time negotiate with appropriate representatives of the in-
surance industry for the purpose of establishing— 
(1) a current schedule of operating costs appli-
cable both to risk-sharing insurance companies and 
other insurers and to insurance companies and other 
insurers, insurance agents and brokers, and insur-
ance adjustment organizations participating on other 
than a risk-sharing basis, and 
(2) a current schedule of operating allowances 
applicable to risk-sharing insurance companies and 
other insurers, 
which may be payable in accordance with the provisions 
of subtitle B, and such schedules shall from time to time 
be prescribed in regulations. 
(b) DEFINITIONS.—For purposes of subsection (a), 
the following definitions shall apply: 
(1) OPERATING ALLOWANCES.—The term ‘‘op-
erating allowances’’ includes amounts for profit and 
contingencies that the Director determines are rea-
sonable and necessary to carry out the purposes of 
this title.
(2) OPERATING COSTS.—The term ‘‘operating 
costs’’ includes— 
(A) expense reimbursements covering the 
direct, actual, and necessary expenses incurred 
in connection with selling and servicing toxic 
mold hazard insurance coverage; 
(B) reasonable compensation payable for 
selling and servicing such coverage, or commis-
sions or service fees paid to producers; 
(C) loss adjustment expenses; and 
(D) other direct, actual, and necessary ex-
penses which the Director finds are incurred in 
connection with selling or servicing such insur-
ance coverage. 
SEC. 608. PAYMENT OF CLAIMS. 
The Director shall prescribe regulations establishing 
the general method or methods by which proved and ap-
proved claims for losses may be adjusted and paid for any 
losses or damages covered by toxic mold hazard insurance 
made available under this title. 
SEC. 609. DISSEMINATION OF INSURANCE INFORMATION. 
The Director shall from time to time take such action 
as may be necessary in order to make information avail-
able to the public, and to any State or local agency or 
official, with regard to—
(1) the toxic mold hazard insurance program, 
its coverage, and objectives; and 
(2) estimated and chargeable insurance pre-
mium rates under the program, including the basis 
for and differences between such rates in accordance 
with the provisions of this subtitle. 
SEC. 610. COORDINATION WITH OTHER PROGRAMS. 
In carrying out this title, the Director shall consult 
with other departments and agencies of the Federal Gov-
ernment, and with interstate, State, and local agencies 
having responsibilities for toxic mold inspection and pre-
vention, in order to ensure that the programs of such 
agencies and the program under this title are mutually 
consistent. 
SEC. 611. REPORTS. 
The Director shall annually submit a report of oper-
ations under this title to the Congress. 
Subtitle B—Organization and Ad-
ministration of Insurance Pro-
gram 
SEC. 621. IMPLEMENTATION. 
Following such consultation with representatives of 
the insurance industry as may be necessary, the Director 
shall implement the toxic mold hazard insurance program 
under subtitle A in accordance with the provisions of part
1 of this subtitle, and, if a determination is made by the 
Director under section 641, under part 2 of this subtitle. 
PART 1—INDUSTRY PROGRAM WITH FEDERAL 
FINANCIAL ASSISTANCE 
SEC. 631. INDUSTRY INSURANCE POOL. 
(a) FORMATION.—The Director may encourage and 
otherwise assist any insurance companies and other insur-
ers that meet the requirements prescribed under sub-
section (b) to form, as associate, or otherwise join together 
in a pool— 
(1) in order to provide the insurance coverage 
authorized under subtitle A; and 
(2) for the purpose of assuming, on such terms 
and conditions as may be agreed upon, such finan-
cial responsibility as will enable such companies and 
other insurers, with the Federal financial and other 
assistance available under this title, to assure a rea-
sonable proportion of responsibility for the adjust-
ment and payment of claims for losses under the 
toxic mold hazard insurance program. 
(b) REQUIREMENTS.—To promote the effective ad-
ministration of the toxic mold hazard insurance program 
under this part, and to ensure that the objectives of this 
title are furthered, the Director may prescribe appropriate 
requirements for insurance companies and other insurers
participating in such pool, including minimum require-
ments for capital or surplus or assets. 
SEC. 632. AGREEMENTS WITH INSURANCE POOL. 
(a) AUTHORITY.—The Director may enter into such 
agreements with the pool formed or otherwise created 
under this part as the Director deems necessary to carry 
out the purposes of this title. 
(b) CONTENTS.—Such agreements shall specify— 
(1) the terms and conditions under which risk 
capital will be available for the adjustment and pay-
ments of claims; 
(2) the terms and conditions under which the 
pool (and the companies and other insurers partici-
pating therein) shall participate in premiums re-
ceived and profits or losses realized or sustained; 
(3) the maximum amount of profit, established 
by the Director and set forth in the schedules pre-
scribed under section 607, which may be realized by 
such pool (and the companies and other insurers 
participating therein); 
(4) the terms and conditions under which oper-
ating costs and allowances set forth in the schedules 
prescribed under section 607 may be paid; and
(5) the terms and conditions under which pre-
mium equalization payments under section 634 will 
be made. 
(c) PARTICIPATION.—In addition, such agreements 
shall contain such provisions as the Director finds nec-
essary to ensure that— 
(1) no insurance company or other insurer that 
meets the requirements prescribed under section 
631(b) and has indicated an intention to participate 
in the toxic mold hazard insurance program on a 
risk-sharing basis, will be excluded from partici-
pating in the pool; 
(2) the insurance companies and other insurers 
participating in the pool will take whatever action 
may be necessary to provide continuity of toxic mold 
hazard insurance coverage by the pool; and 
(3) any insurance companies and other insur-
ers, insurance agents, and brokers and insurance ad-
justment organizations will be permitted to cooper-
ate with the pool as fiscal agents or otherwise, on 
other than a risk-sharing basis, to the maximum ex-
tent practicable.