Pandemic Risk Insurance Act of 2021
Bill: H.R.5823 | Sponsor: Rep. Maloney, Carolyn B. (D-NY)
Policy area: Finance and Financial Sector

Summary:
Pandemic Risk Insurance Act of 2021
This bill establishes the Pandemic Risk Reinsurance Program within the Department of the Treasury. The program generally provides compensation to property and casualty insurers if they incur losses as a result of coverage related to pandemics and outbreaks of disease. All insurers as specified in the bill must participate in the program. These insurers must offer, in all property and casualty insurance policies, coverage of losses related to an outbreak of infectious disease or a pandemic for which a covered public health emergency is certified by the Department of Health and Human Services. Additionally, these insurers must offer, in all its commercial property insurance policies, coverage to compensate the insured for a portion of 180 days' fixed costs and payroll triggered upon the certification of a public health emergency and state or local government closure orders without requiring specific proof of losses.
The bill establishes the share of insured losses covered by the program and conditions for payment to insurers. The bill also provides for the treatment of reinsurance, captive insurers, other self-insurance arrangements, and state residual market insurance entities.
The Government Accountability Office must report on the availability and affordability of property and casualty insurance.

To establish a Pandemic Risk Reinsurance Program, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pandemic Risk Insurance Act of 
2021''.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish a Federal program that 
provides for a transparent system of shared public and private 
compensation for property and casualty insurance losses resulting from 
a pandemic or outbreak of communicable or infectious disease, in order 
to--
            (1) protect consumers by addressing market disruptions and 
        ensure the continued widespread availability and affordability 
        of property and casualty insurance for losses resulting from a 
        pandemic or outbreak of communicable or infectious disease; and
            (2) allow for a transitional period for the private markets 
        to stabilize, resume pricing of such insurance, and build 
        capacity to absorb any future losses, while preserving State 
        insurance regulation and consumer protections.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Covered public health emergency.--
                    (A) In general.--The term ``covered public health 
                emergency'' means any outbreak of infectious disease or 
                pandemic--
                            (i) for which the Secretary of Health and 
                        Human Services determines, or renews or extends 
                        a determination that, a public health emergency 
                        exists under section 319 of the Public Health 
                        Service Act (42 U.S.C. 247d) due to a 
                        significant outbreak of infectious disease; and
                            (ii) that is certified by the Secretary as 
                        a covered public health emergency for purposes 
                        of this Act.
                    (B) Nondelegation.--The Secretary may not delegate 
                or designate to any other officer, employee, or person, 
                any certification under subparagraph (A)(ii) of 
                whether, during the effective period of the Program, a 
                covered public health emergency exists.
            (2) Affiliate.--The term ``affiliate'' means, with respect 
        to an participating insurer, any entity that controls, is 
        controlled by, or is under common control with the insurer.
            (3) Business interruption insurance.--The term ``business 
        interruption insurance'' means commercial lines of property and 
        casualty insurance coverage, other non-property contingent 
        business interruption insurance, provided or made available for 
        losses resulting from periods of suspended business operations, 
        including losses resulting from a covered public health 
        emergency, or a civil order related to a covered public health 
        emergency, whether provided under broader coverage for property 
        and casualty losses or separately.
            (4) Commercial property insurance.--The term ``commercial 
        property insurance'' means property insurance which indemnifies 
        an owner or user of property at a fixed location or premises 
        for loss or damage or loss of income-producing ability of the 
        property, but the term does not include inland marine, transit, 
        or personal lines insurance.
            (5) Control.--
                    (A) In general.--An entity has ``control'' over 
                another entity, if--
                            (i) the entity directly or indirectly or 
                        acting through 1 or more other persons owns, 
                        controls, or has power to vote 25 percent or 
                        more of any class of voting securities of the 
                        other entity;
                            (ii) the entity controls in any manner the 
                        election of a majority of the directors or 
                        trustees of the other entity; or
                            (iii) the Secretary determines, after 
                        notice and opportunity for hearing, that the 
                        entity directly or indirectly exercises a 
                        controlling influence over the management or 
                        policies of the other entity.
                    (B) Rule of construction.--An entity, including any 
                affiliate thereof, does not have ``control'' over 
                another entity, if, as of January 1, 2021, the entity 
                is acting as an attorney-in-fact, as defined by the 
                Secretary, for the other entity and such other entity 
                is a reciprocal insurer, provided that the entity is 
                not, for reasons other than the attorney-in-fact 
                relationship, defined as having ``control'' under 
                subparagraph (A).
            (6) Department.--The term ``Department'' means the 
        Department of the Treasury.
            (7) Economic recovery period.--
                    (A) In general.--The term ``economic recovery 
                period'' means the period beginning with the date of 
                enactment of this Act and ending on December 31 of the 
                fifth year following enactment.
                    (B) Reset.--If during the economic recovery period, 
                a covered public health emergency is certified which 
                applies to the whole of the country or to States 
                comprising at least 40 percent of the country's 
                population, the economic recovery period will be 
                extended until December 31 of the 5th year following 
                such certification.
            (8) Event.--The term ``event'' means a trade show, consumer 
        show, exhibition, fair, conference, convention, meeting, 
        seminar, charity event, auction, gala dinner, competition, 
        sporting event, film or television production, award show, or 
        other similar event or production.
            (9) Event cancellation insurance.--The term ``event 
        cancellation insurance'' means insurance, including production 
        package insurance, that indemnifies an insured for losses that 
        occur as a consequence of--
                    (A) cancellation, abandonment, delay, or 
                rescheduling (whether full or partial) of an event; or
                    (B) non-appearance at an event of a principal 
                speaker or performer or unavailability of an essential 
                element, including covered key talent or cast members, 
                required for achievement of the event's purpose.
            (10) Insured loss.--The term insured loss means any loss 
        resulting from an outbreak of infectious disease or pandemic 
        for which a covered public health emergency is certified that 
        is covered by primary or excess property and casualty insurance 
        issued by an insurer if such loss occurs--
                    (A) within the United States; and
                    (B) during the period that the covered public 
                health emergency for such area is in effect.
            (11) Insurer.--The term insurer means any entity, including 
        any affiliate thereof--
                    (A) that is--
                            (i) licensed or admitted to engage in the 
                        business of providing primary or excess 
                        insurance in any State;
                            (ii) not licensed or admitted as described 
                        in clause (i), if it is an eligible surplus 
                        line carrier listed on the Quarterly Listing of 
                        Alien Insurers of the NAIC, or any successor 
                        thereto;
                            (iii) approved for the purpose of offering 
                        property and casualty insurance by a Federal 
                        agency in connection with maritime, energy, or 
                        aviation activity;
                            (iv) a State residual market insurance 
                        entity or State workers' compensation fund; or
                            (v) any other entity described in section 
                        4(f), to the extent provided in the rules of 
                        the Secretary issued under section 4(f);
                    (B) that receives direct earned premiums for any 
                type of commercial property and casualty insurance 
                coverage, other than in the case of entities described 
                in subsections (d) and (f) of section 4; and
                    (C) that meets any other criteria that the 
                Secretary may reasonably prescribe.
        Such term includes captive insurers and other self-insurance 
        arrangements by municipalities and other entities (such as 
        workers' compensation self-insurance programs and State 
        workers' compensation reinsurance pools).
            (12) NAIC.--The term ``NAIC'' means the National 
        Association of Insurance Commissioners.
            (13) Parametric insurance facility.--The term ``parametric 
        insurance facility'' means a non-assessable joint underwriting 
        association or pool which has been approved by the Secretary to 
        provide parametric non-damage business interruption insurance 
        for purpose of Section 4(c)(2)(B).
            (14) Parametric non-damage business interruption 
        insurance.--The term ``parametric non-damage business 
        interruption insurance'' means insurance that compensates the 
        insured for a portion of 180 days' fixed costs and payroll, as 
        more specifically provided by regulations issued by the 
        Secretary, which is triggered irrespective of physical status 
        or condition of the insured physical location and without need 
        for specific proof of loss upon the following conditions--
                    (A) a certification of covered public health 
                emergency; and
                    (B) the State or local government in which the 
                insured operates has issued a closure order applicable 
                to organizations with the policyholder's NAICS code.
            (15) Participating insurer.--The term ``participating 
        insurer'' means, with respect to a calendar year, an insurer 
        that has elected pursuant to section 4(c)(2)(B) to participate 
        in the parametric insurance facility under this Act for such 
        calendar year.
            (16) Person.--The term ``person'' means any individual, 
        business or nonprofit entity (including those organized in the 
        form of a partnership, limited liability company, corporation, 
        or association), trust or estate, or a State or political 
        subdivision of a State or other governmental unit.
            (17) Program.--The term ``Program'' means the Pandemic Risk 
        Reinsurance Program established by this Act.
            (18) Property and casualty insurance.--The term ``property 
        and casualty insurance''--
                    (A) means commercial lines of property and casualty 
                insurance, including excess insurance, workers' 
                compensation insurance, business interruption 
                insurance, commercial general liability insurance, 
                directors and officers liability insurance, and event 
                cancellation insurance; and
                    (B) does not include--
                            (i) Federal crop insurance issued or 
                        reinsured under the Federal Crop Insurance Act 
                        (7 U.S.C. 1501 et seq.), or any other type of 
                        crop or livestock insurance that is privately 
                        issued or reinsured;
                            (ii) private mortgage insurance (as such 
                        term is defined in section 2 of the Homeowners 
                        Protection Act of 1998 (12 U.S.C. 4901)) or 
                        title insurance;
                            (iii) financial guaranty insurance issued 
                        by monoline financial guaranty insurance 
                        corporations;
                            (iv) health or life insurance, including 
                        group life insurance;
                            (v) flood insurance provided under the 
                        National Flood Insurance Act of 1968 (42 U.S.C. 
                        4001 et seq.);
                            (vi) reinsurance or retrocessional 
                        reinsurance;
                            (vii) commercial automobile insurance;
                            (viii) burglary and theft insurance; or
                            (ix) surety insurance.
            (19) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (20) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, each of the United States Virgin Islands, 
        and any territory or possession of the United States.
            (21) United states.--The term ``United States'' means the 
        several States.
            (22) Rule of construction for dates.--With respect to any 
        reference to a date in this Act, such day shall be construed--
                    (A) to begin at 12:01 a.m. on that date; and
                    (B) to end at midnight on that date.

SEC. 4. PANDEMIC RISK REINSURANCE PROGRAM.

    (a) Establishment of Program.--
            (1) In general.--There is established in the Department of 
        the Treasury the Pandemic Risk Reinsurance Program.
            (2) Authority of the secretary.--Notwithstanding any other 
        provision of State or Federal law, the Secretary shall 
        administer the Program, and shall pay the Federal share of 
        compensation for insured losses in accordance with subsection 
        (e).
            (3) Mandatory participation.--Each entity that meets the 
        definition of an insurer under this Act shall participate in 
        the Program.
            (4) Treatment of existing policies.--Except as provided 
        under section 6, this Act may not be construed to affect any 
        policy for property and casualty insurance in force on the date 
        of the enactment of this Act.
    (b) Conditions for Federal Payments.--No payment may be made by the 
Secretary under this section with respect to an insured loss that is 
covered by an insurer, unless--
            (1) except in the case of a parametric non-damage business 
        interruption insured loss, the person that suffers the insured 
        loss, or a person acting on behalf of that person, files a 
        claim with the insurer;
            (2) the insurer provides clear and conspicuous disclosure 
        to the policyholder of the premium charged for insured losses 
        covered by the Program and the Federal share of compensation 
        for insured losses under the Program--
                    (A) in the case of any policy that is issued before 
                the date of enactment of this Act, not later than 90 
                days after that date of enactment;
                    (B) in the case of any policy that is issued within 
                90 days of the date of enactment of this Act, at the 
                time of offer and renewal of the policy; and
                    (C) in the case of any policy that is issued more 
                than 90 days after the date of enactment of this Act, 
                on a separate line item in the policy, at the time of 
                offer and renewal of the policy;
            (3) the insurer processes the claim for the insured loss in 
        accordance with appropriate business practices, and any 
        reasonable procedures that the Secretary may prescribe; and
            (4) the insurer submits to the Secretary, in accordance 
        with such reasonable procedures as the Secretary may 
        establish--
                    (A) a claim for payment of the Federal share of 
                compensation for insured losses under the Program;
                    (B) written certification--
                            (i) of the underlying claim; and
                            (ii) of all payments made for insured 
                        losses; and
                    (C) certification of its compliance with the 
                provisions of this subsection.
    (c) Mandatory Availability of Coverage for Covered Public Health 
Emergencies.--
            (1) In general.--During each calendar year, each entity 
        that meets the definition of an insurer under this Act--
                    (A) shall make available, in all of its property 
                and casualty insurance policies, coverage for insured 
                losses; and
                    (B) shall make available property and casualty 
                insurance coverage for insured losses that does not 
                differ materially from the terms, conditions, amounts, 
                limits, deductibles, or self-insured retentions and 
                other coverage limitations applicable to losses arising 
                from events other than public health emergencies.
            (2) Parametric non-damage business interruption insurance 
        coverage.--
                    (A) In general.--During each calendar year, each 
                entity that meets the definition of an insurer under 
                this Act shall in addition make available, in all its 
                commercial property insurance policies, parametric non-
                damage business interruption insurance coverage for 
                insured losses.
                    (B) Alternatives.--An insurer subject to the 
                requirement in subparagraph (A) may satisfy the 
                requirement by arranging for the parametric non-damage 
                business interruption insurance coverage to be made 
                available to the insured by either--
                            (i) an affiliate of the insurer; or
                            (ii) a parametric insurance facility in 
                        which the insurer participates.
                    (C) Criteria.--The Secretary shall issue 
                regulations, as soon as practicable after the date of 
                enactment of this Act, that establish eligibility 
                criteria and other standards for parametric insurance 
                facilities. In general--
                            (i) such facilities may be established and 
                        governed subject to supervision by the 
                        insurance commissioner of the domiciliary State 
                        and if qualified by the Secretary will be 
                        permitted to provided coverage in all States;
                            (ii) insurer capital contribution to a 
                        facility may be in the form of surplus note or 
                        similar instrument which may bear a coupon but 
                        subject to all policyholder claims; and
                            (iii) a facility may, subject to regulatory 
                        approval and any limitations in the Secretary's 
                        regulations, distribute profits beginning after 
                        the expiration of the economic recovery period.
            (3) Supplemental business interruption coverage.--Nothing 
        in this section shall be construed to prohibit or limit the 
        ability of an insurer to provide supplemental business 
        interruption insurance coverage in addition to the coverage 
        made available under paragraph (2).
    (d) State Residual Market Insurance Entities.--
            (1) In general.--The Secretary shall issue regulations, as 
        soon as practicable after the date of enactment of this Act, 
        that apply the provisions of this Act to State residual market 
        insurance entities and State workers' compensation funds.
            (2) Treatment of certain entities.--For purposes of the 
        regulations issued pursuant to paragraph (1)--
                    (A) a State residual market insurance entity that 
                does not share its profits and losses with private 
                sector insurers shall be treated as a separate insurer; 
                and
                    (B) a State residual market insurance entity that 
                shares its profits and losses with private sector 
                insurers shall not be treated as a separate insurer, 
                and shall report to each private sector insurance 
                participant its share of the insured losses of the 
                entity, which shall be included in each private sector 
                participating insurer's insured losses.
            (3) Treatment of participation in certain entities.--Any 
        insurer that participates in sharing profits and losses of a 
        State residual market insurance entity shall include in its 
        calculations of premiums any premiums distributed to the 
        insurer by the State residual market insurance entity.
    (e) Reinsurance for Insured Losses.--
            (1) Federal share of compensation.--
                    (A) Quota share protection.--In general, the 
                Federal share of compensation under the Program to be 
                paid by the Secretary for insured losses of an insurer 
                or a parametric insurance facility during each calendar 
                year shall, on a quota share basis, be equal to 95 
                percent of such insured losses.
                    (B) Stop-loss protection.--In addition to the quota 
                share reinsurance provided under subparagraph (A), the 
                Secretary may, upon application by an insurer or 
                parametric insurance facility, provide such insurer or 
                facility with stop-loss protection for insured losses, 
                for such price and on such other terms and conditions 
                as the Secretary deems consistent with the purposes of 
                the Act. In general, such stop loss protection shall 
                not have an attachment point lower than provided in any 
                catastrophe excess of loss reinsurance program which 
                the insurer or facility has in effect for the same 
                period.
    (f) Captive Insurers and Other Self-Insurance Arrangements.--The 
Secretary may, in consultation with the NAIC or the appropriate State 
regulatory authority, apply the provisions of this Act, as appropriate, 
to other classes or types of captive insurers and other self-insurance 
arrangements by municipalities and other entities (such as workers 
``compensation self-insurance programs and State workers'' compensation 
reinsurance pools), but only if such application is determined before 
the commencement of a covered public health emergency in which such an 
entity incurs an insured loss and all of the provisions of this Act are 
applied comparably to such entities.
    (g) Reinsurance To Cover Exposure.--
            (1) Obtaining coverage.--This Act may not be construed to 
        limit or prevent insurers or facilities from obtaining 
        reinsurance coverage for insured losses retained by insurers or 
        facilities pursuant to this section, nor shall the obtaining of 
        such coverage affect the calculation of such deductibles.
            (2) Limitation on financial assistance.--The amount of 
        financial assistance provided pursuant to this section shall 
        not be reduced by reinsurance paid or payable to an insurer 
        from other sources, except that recoveries from such other 
        sources, taken together with financial assistance for the 
        calendar year provided pursuant to this section, may not exceed 
        the aggregate amount of the insurer's insured losses for the 
        calendar year. If such recoveries and financial assistance for 
        the calendar year exceed such aggregate amount of insured 
        losses for the calendar year and there is no agreement between 
        the insurer and any reinsurer to the contrary, an amount in 
        excess of such aggregate insured losses shall be returned to 
        the Secretary.
    (h) Premiums for Quota Share Reinsurance Protection.--
            (1) Economic recovery period.--During the economic recovery 
        period, including any reset extension, no premium will be 
        charged to insurers or parametric insurance facilities for the 
        Federal quota share reinsurance protection provided by the 
        Program under subsection (e)(1)(A).
            (2) Thereafter.--Commencing with the expiration of the 
        economic recovery period, the Secretary shall be authorized to 
        prescribe a rating plan for the quota share reinsurance 
        provided by the Program under subsection (e)(1)(A) for both the 
        parametric non-damage business interruption insurance and for 
        other lines of property and casualty insurance. The rating plan 
        shall be designed to encourage broad participation in the 
        coverage made available under the Program, and in particular 
        shall be designed to recover the cost of the reinsurance 
        program over a period of not less than 5 years.

SEC. 5. GENERAL AUTHORITY AND ADMINISTRATION OF CLAIMS.

    (a) General Authority.--The Secretary shall have the powers and 
authorities necessary to carry out the Program, including authority--
            (1) to investigate and audit all claims under the Program; 
        and
            (2) to prescribe regulations and procedures to effectively 
        administer and implement the Program, and to ensure that all 
        participating insurers and self-insured entities are treated 
        comparably under the Program.
    (b) Interim Rules and Procedures.--The Secretary may issue interim 
final rules or procedures specifying the manner in which--
            (1) insurers may file and certify claims under the Program;
            (2) the Federal share of compensation for insured losses 
        will be paid under the Program, including payments based on 
        estimates of or actual insured losses;
            (3) the Secretary may, at any time, seek repayment from or 
        reimburse any insurer, based on estimates of insured losses 
        under the Program, to effectuate the insured loss sharing 
        provisions in section 4; and
            (4) the Secretary will determine any final netting of 
        payments under the Program, including payments owed to the 
        Federal Government from any insurer and any Federal share of 
        compensation for insured losses owed to any insurer, to 
        effectuate the insured loss sharing provisions in section 4.
    (c) Consultation.--The Secretary shall consult with the NAIC, as 
the Secretary determines appropriate, concerning the Program.
    (d) Contracts for Services.--The Secretary may employ persons or 
contract for services as may be necessary to implement the Program.
    (e) Submission of Premium Information.--
            (1) In general.--The Secretary shall annually compile 
        information on the property and casualty insurance premium 
        rates of insurers for the preceding year.
            (2) Access to information.--To the extent that such 
        information is not otherwise available to the Secretary, the 
        Secretary may require each insurer to submit to the NAIC 
        property and casualty insurance premium rates, as necessary to 
        carry out paragraph (1), and the NAIC shall make such 
        information available to the Secretary.
            (3) Availability to congress.--The Secretary shall make 
        information compiled under this subsection available to the 
        Congress, upon request.
    (f) Reporting of Property and Casualty Insurance Data.--
            (1) Authority.--Beginning upon the date of the enactment of 
        this Act, in each calendar year, the Secretary shall require 
        insurers to submit to the Secretary such information regarding 
        losses of such insurers resulting from covered public health 
        emergencies as the Secretary considers appropriate to analyze 
        the effectiveness of the Program, which shall include 
        information regarding--
                    (A) lines of insurance with exposure to such 
                losses;
                    (B) premiums earned on such coverage;
                    (C) geographical location of exposures;
                    (D) pricing of such coverage;
                    (E) the take-up rate for such coverage;
                    (F) the amount of private reinsurance for losses 
                resulting from covered public health emergencies 
                purchased; and
                    (G) such other matters as the Secretary considers 
                appropriate.
            (2) Reports.--Not later than one year after the date of the 
        enactment of this Act and annually thereafter, the Secretary 
        shall submit a report to the Committee on Financial Services of 
        the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate that includes--
                    (A) an analysis of the overall effectiveness of the 
                Program;
                    (B) an evaluation of the availability and 
                affordability of property and casualty insurance for 
                losses resulting from public health emergencies;
                    (C) an evaluation of any changes or trends in the 
                data collected under paragraph (1);
                    (D) an evaluation of whether any aspects of the 
                Program have the effect of discouraging or impeding 
                insurers from providing property and casualty insurance 
                coverage or coverage for public health emergencies;
                    (E) an evaluation of the impact of the Program on 
                workers' compensation insurers; and
                    (F) in the case of the data reported in paragraph 
                (1)(B), an updated estimate of the total amount earned 
                since the first January 1 occurring after the date of 
                the enactment of this Act.
            (3) Protection of data.--To the extent possible, the 
        Secretary shall contract with an insurance statistical 
        aggregator to collect the information described in paragraph 
        (1), which shall keep any nonpublic information confidential 
        and provide it to the Secretary in an aggregate form or in such 
        other form or manner that does not permit identification of the 
        insurer submitting such information.
            (4) Advance coordination.--Before collecting any data or 
        information under paragraph (1) from an insurer, or affiliate 
        of an insurer, the Secretary shall coordinate with the 
        appropriate State insurance regulatory authorities and any 
        relevant government agency or publicly available sources to 
        determine if the information to be collected is available from, 
        and may be obtained in a timely manner by, individually or 
        collectively, such entities. If the Secretary determines that 
        such data or information is available, and may be obtained in a 
        timely matter, from such entities, the Secretary shall obtain 
        the data or information from such entities. If the Secretary 
        determines that such data or information is not so available, 
        the Secretary may collect such data or information from an 
        insurer and affiliates.
            (5) Confidentiality.--
                    (A) Retention of privilege.--The submission of any 
                non-publicly available data and information to the 
                Secretary and the sharing of any non-publicly available 
                data with or by the Secretary among other Federal 
                agencies, the State insurance regulatory authorities, 
                or any other entities under this subsection shall not 
                constitute a waiver of, or otherwise affect, any 
                privilege arising under Federal or State law (including 
                the rules of any Federal or State court) to which the 
                data or information is otherwise subject.
                    (B) Continued application of prior confidentiality 
                agreements.--Any requirement under Federal or State law 
                to the extent otherwise applicable, or any requirement 
                pursuant to a written agreement in effect between the 
                original source of any non-publicly available data or 
                information and the source of such data or information 
                to the Secretary, regarding the privacy or 
                confidentiality of any data or information in the 
                possession of the source to the Secretary, shall 
                continue to apply to such data or information after the 
                data or information has been provided pursuant to this 
                subsection.
                    (C) Information-sharing agreement.--Any data or 
                information obtained by the Secretary under this 
                subsection may be made available to State insurance 
                regulatory authorities, individually or collectively, 
                through an information-sharing agreement that--
                            (i) shall comply with applicable Federal 
                        law; and
                            (ii) shall not constitute a waiver of, or 
                        otherwise affect, any privilege under Federal 
                        or State law (including any privilege referred 
                        to in subparagraph (A) and the rules of any 
                        Federal or State court) to which the data or 
                        information is otherwise subject.
                    (D) Agency disclosure requirements.--Section 552 of 
                title 5, United States Code, including any exceptions 
                thereunder, shall apply to any data or information 
                submitted under this subsection to the Secretary by an 
                insurer or affiliate of an insurer.
    (g) Funding.--
            (1) Federal payments.--There are hereby appropriated, out 
        of funds in the Treasury not otherwise appropriated, such sums 
        as may be necessary to pay the Federal share of compensation 
        for insured losses under the Program.
            (2) Administrative expenses.--There are hereby 
        appropriated, out of funds in the Treasury not otherwise 
        appropriated, such sums as may be necessary to pay reasonable 
        costs of administering the Program.

SEC. 6. PREEMPTION AND NULLIFICATION OF PRE-EXISTING EXCLUSIONS.

    (a) General Nullification.--Any exclusion in a contract of an 
insurer for property and casualty insurance that is in force on the 
date of enactment of this Act shall be void to the extent that it 
excludes losses that would otherwise be insured losses under the 
Program.
    (b) General Preemption.--Any State approval of any exclusion from a 
contract of an insurer for property and casualty insurance that is in 
force on the date of enactment of this Act, shall be void to the extent 
that it excludes losses that would otherwise be insured losses under 
the Program.
    (c) Reinstatement of Exclusions.--Notwithstanding subsections (a) 
and (b) or any provision of State law, an insurer may reinstate a 
preexisting provision in a contract for property and casualty insurance 
that is in force on the date of enactment of this Act and that excludes 
coverage for loss resulting from a covered public health emergency 
only--
            (1) if the insurer has received a written statement from 
        the insured that affirmatively authorizes such reinstatement; 
        or
            (2) for contracts in effect for less than 5 months--
                    (A) the insured fails to pay any increased premium 
                charged by the insurer for providing such coverage for 
                covered public health emergencies, but only if such 
                premium does not increase by more than 15 percent; and
                    (B) the insurer provided notice, at least 30 days 
                before any such reinstatement, of--
                            (i) the increased premium for such covered 
                        public health emergency coverage; and
                            (ii) the rights of the insured with respect 
                        to such coverage, including any date upon which 
                        the exclusion would be reinstated if no payment 
                        is received.

SEC. 7. PRESERVATION PROVISIONS.

    (a) State Law.--Nothing in this Act shall affect the jurisdiction 
or regulatory authority of the insurance commissioner (or any agency or 
office performing like functions) of any State over any insurer or 
other person--
            (1) except as specifically provided in this Act; and
            (2) except that--
                    (A) the definition of the term covered public 
                health emergency in section 3 shall be the exclusive 
                definition of that term for purposes of compensation 
                for insured losses under this Act, and shall preempt 
                any provision of State law that is inconsistent with 
                that definition, to the extent that such provision of 
                law would otherwise apply to any type of insurance 
                covered by this Act;
                    (B) during the period beginning on the date of 
                enactment of this Act and ending on December 31, 2021, 
                rates and forms for property and casualty insurance 
                covered by this Act and filed with any State shall not 
                be subject to prior approval or a waiting period under 
                any law of a State that would otherwise be applicable, 
                except that nothing in this Act affects the ability of 
                any State to invalidate a rate as excessive, 
                inadequate, or unfairly discriminatory, and, with 
                respect to forms, where a State has prior approval 
                authority, it shall apply to allow subsequent review of 
                such forms; and
                    (C) during the period beginning on the date of 
                enactment of this Act and for so long as the Program is 
                in effect, as provided in section 9, books and records 
                of any insurer that are relevant to the Program shall 
                be provided, or caused to be provided, to the 
                Secretary, upon request by the Secretary, 
                notwithstanding any provision of the laws of any State 
                prohibiting or limiting such access.
    (b) Existing Reinsurance Agreements.--Nothing in this Act shall be 
construed to alter, amend, or expand the terms of coverage under any 
reinsurance agreement in effect on the date of enactment of this Act. 
The terms and conditions of such an agreement shall be determined by 
the language of that agreement.

SEC. 8. STUDY AND ANALYSES.

    (a) Study and Report on the Program.--
            (1) Study.--The Secretary, in consultation with the NAIC, 
        representatives of the insurance industry and of policy 
        holders, other experts in the insurance field, and other 
        experts as needed, shall assess the effectiveness of the 
        Program and the likely capacity of the property and casualty 
        insurance industry to offer insurance for risk of public health 
        emergencies after termination of the Program, and the 
        availability and affordability of such insurance for various 
        policyholders.
            (2) Report.--The Secretary shall submit a report to the 
        Congress on the results of the study conducted under paragraph 
        (1) not later than the expiration of the 12-month period 
        beginning on the date of the enactment of this Act.
    (b) Analysis of Market Conditions for Public Health Emergency Risk 
Insurance.--
            (1) In general.--The President's Working Group on Financial 
        Markets, in consultation with the National Association of 
        Insurance Commissioners, representatives of the insurance 
        industry, representatives of the securities industry, and 
        representatives of policy holders, shall perform an ongoing 
        analysis regarding the long-term availability and affordability 
        of insurance for risk of public health emergencies.
            (2) Report.--Not later than the expiration of the 12-month 
        period beginning on the date of the enactment of this Act and 
        every two years thereafter, the President's Working Group on 
        Financial Markets shall submit a report to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        on its findings pursuant to the analysis conducted under 
        paragraph (1).
    (c) Availability and Affordability of Property and Casualty 
Insurance in Specific Markets.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study to determine whether there are specific 
        markets in the United States where there are unique capacity 
        constraints on the amount of property and casualty insurance 
        available.
            (2) Elements of study.--The study required by paragraph (1) 
        shall contain--
                    (A) an analysis of both insurance and reinsurance 
                capacity in specific markets, including pricing and 
                coverage limits in existing policies;
                    (B) an assessment of the factors contributing to 
                any capacity constraints that are identified; and
                    (C) recommendations for addressing those capacity 
                constraints.
            (3) Report.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General shall submit a 
        report on the study required by paragraph (1) to the Committee 
        on Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives.
    (d) Study of Small Insurer Market Competitiveness.--
            (1) In general.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this Act 
        and every two years thereafter, the Secretary shall conduct a 
        study of small insurers (as such term is defined by regulation 
        by the Secretary) participating in the Program, and identify 
        any competitive challenges small insurers face in the property 
        and casualty insurance marketplace, including--
                    (A) changes to the market share, premium volume, 
                and policyholder surplus of small insurers relative to 
                large insurers;
                    (B) how the property and casualty insurance market 
                for risk of public health emergencies differs between 
                small and large insurers, and whether such a difference 
                exists within other perils;
                    (C) the impact of the Program's availability on 
                small insurers;
                    (D) the availability and cost of private 
                reinsurance for small insurers; and
                    (E) the impact that State workers compensation laws 
                have on small insurers and workers compensation 
                carriers in the property and casualty insurance 
                marketplace.
            (2) Report.--The Secretary shall submit a report to the 
        Congress setting forth the findings and conclusions of each 
        study required under paragraph (1).

SEC. 9. TERMINATION OF PROGRAM.

    (a) Termination.--The Program shall terminate on December 31, 2031.
    (b) Continuing Authority.--To pay or adjust compensation following 
the termination of the Program, the Secretary may take such actions as 
may be necessary to ensure payment, recoupment, reimbursement, or 
adjustment of compensation for insured losses arising out of any 
covered public health emergency occurring during the period in which 
the Program was in effect under this Act, in accordance with the 
provisions of section 4 and regulations promulgated thereunder.
    (c) Repeal.--This Act is repealed on the final termination date of 
the Program under subsection (a), except that such repeal shall not be 
construed--
            (1) to prevent the Secretary from taking, or causing to be 
        taken, such actions under subsection (b) of this section, 
        paragraph (4) or (5) of section 4(e), or subsection (a)(1), 
        (c), (d), or (e) of section 5, as in effect on the day before 
        the date of such repeal, or applicable regulations promulgated 
        thereunder, during any period in which the authority of the 
        Secretary under subsection (b) of this section is in effect; or
            (2) to prevent the availability of funding under section 
        5(g) during any period in which the authority of the Secretary 
        under subsection (b) of this section is in effect.
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