The INSURE Act would require the Treasury Secretary to create a federal reinsurance program for property insurers. The program would cover wind and hurricanes first, then severe storms and wildfires, floods, and possibly earthquakes. Participating insurers would pay premiums into a federal fund, and the Treasury Secretary could issue U.S.-guaranteed notes or bonds if the fund could not meet its obligations. The bill also calls for loss-prevention partnerships, insurer data reporting, studies on relocation assistance and earthquake coverage, and a pilot program for property policies lasting at least five years.
The program would be available to insurers that offer qualifying residential or commercial property coverage and work with policyholders on loss prevention. A pilot would test policies lasting at least five years. Under the pilot, premiums could rise with construction costs, home value, or optional coverage, but not because the insurer changes its assessment of catastrophe risk for the property. The bill does not guarantee that a particular insurer or property would be covered.
Participating insurers would pay quarterly premiums to the federal fund. The bill does not provide a total cost estimate. If the fund could not meet its obligations, the Treasury Secretary would issue notes or bonds guaranteed by the United States.
No publicly available information.
No publicly available information.