An Act to continue the national insurance development program.
PL 94-13 (H.R.2783), enacted 04/08/1975

89 STAT. 68 
PUBLIC LAW 94-13—APR. 8, 1975 
Public Law 94-13 
94th Congress 
An Act 
Apr. 8, 1975 
[H.R. 2783] 
National 
Insurance 
Development Act 
of 1975. 
12 u s e 1749bbb 
note. 
12 u s e 1749bbb 
note. 
12 u s e 1701t 
note. 
To continue the national insurance development program. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may be 
cited as the "National Insurance Development Act of 1975". 
SECTION 1. (a) The Congress finds that (1) under the Housing and 
Urban Development Act of 1968 (Public Law 90^48, approved 
August 1, 1968), as amended, the powers of the Secretary of the 
Department of Housing and Urban Development to enter into new 
reinsurance contracts with respect to the Federal riot reinsurance pro-
gram and into new direct insurance contracts with respect to the Fed-
eral crime insurance program will terminate on April 30,1975, except 
to the extent necessary (a) to continue policies of direct insurance and 
reinsurance, until April 30, 1978, (b) to handle claims and those aris-
ing under the policies still in force on the termination date of the 
program, and (c) to complete the liquidation and termination of the 
reinsurance and direct insurance programs; (2) continuation of the 
Federal riot reinsurance program is essential both to the operation of 
the system of State FAIR plans, which provide access for many 
people to basic property insurance not otherwise available in urban 
areas, and to the continued existence of such FAIR plans inasmuch as 
many State laws condition the very existence of such FAIR plans upon 
the continued existence of the Federal riot reinsurance program; (3) 
continuation of the Federal crime insurance program, which provides 
access for many homeowners, tenants, and small businessmen to bur-
glary, robbery, and similar coverages, in States where an insurance 
coverage availability problem exists, is likewise essential; (4) with-
drawal at this time of the Federal support which these programs give 
to the insurance buying public and the insurers would be particularly 
ill timed and inadvisable in view of the (a) threatening major short-
age of voluntary insurance facilities to which the consumer can turn 
to fulfill his insurance purchase needs and (b) the potential for insurer 
insolvencies inherent in times of economic stress; and (5) the impend-
ing tightening of the availability of insurance coverage in the insur-
ance market will only intensify due to the present economic conditions 
confronting insurers, which affect the capital adequacies of insurers 
due to severe declines in the values of insurers' securities portfolios, 
thus impacting on their ability to increase their underwritings in a 
growing insurance market. 
(b) The purpose of this Act, therefore, is to extend the duration of 
the national insurance development program so as to maintain the 
Federal riot reinsurance program which reinsures the general property 
insurance business against the catastrophic peril of riot and, thus, 
makes this insurance available, together with its review and compli-
ance function which assures that the intent of the Housing and Urban 
Development Act of 1968 (Public Law 90-448, approved August 1, 
1968) as amended is carried out, as well as the Federal crime insurance 
program which provides basic crime insurance coverages in the States 
where it is needed, both of which programs aid the insurance purchas-
ing consumer when, from time to time and especially in times such as 
PUBLIC LAW 94-13—APR. 8, 1975 
89 STAT. 69 
these, insurers engage in conscious policies of market constriction 
which lead to serious inner-city insurance availability problems of 
the kind the national insurance development program has been created 
to ameliorate. 
SEC. 2. Section 1201 (b) (1) of the National Housing Act is amended 
ermination d te, 
by striking out "April 30,1975" and inserting in lieu thereof "April 30, 
^tensior. 
1977". 
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^ 
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F 
5 
i2USC1749ibb. 
Approved April 8, 1975. 
LEGISLATIVE HISTORY: 
lOUSE REPORT No. 94-60 (Comm. on Banking, Currency and Housing). 
:ONGRESSIONAL RECORD, Vol. 121 (1975): 
Mar. 18, considered and passed House. 
Mar. 21, considered and passed Senate, amended. 
Mar. 25, House concurred in Senate amendments. 
57-194 O - 77 - 9