Federal Reinsurance Program to Stabilize Home Insurance After Major Disasters.
This law establishes a federal reinsurance program to protect insurance companies from insolvency following catastrophic natural disasters like hurricanes or earthquakes. The goal is to ensure that homeowners' insurance remains affordable and available to citizens. If insured losses in a participating state exceed a set threshold, the federal government provides funds, which the state must repay within 10 years.
Key points
Stabilizing the housing insurance market: The program aims to keep property and casualty insurance (for homes and rentals) accessible and affordable, even after large-scale natural disasters.
Financial support for states: The federal government covers insured losses above a state-specific trigger amount, but the participating state must pledge to fully repay this aid within 10 years.
Voluntary participation: States choose whether to join the program, requiring an approved plan to ensure insurers handle claims up to the federal assistance threshold.
Status:
Introduced
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