November 21, 2025
Mr. Moskowitz introduced the following bill; which was referred to the Committee on Financial Services
To establish a Natural Disaster Risk Reinsurance Program, and for other purposes.
Section 1. Short title
This Act may be cited as the Natural Disaster Risk Reinsurance Program Act
.
Sec. 2. Natural Disaster Risk Reinsurance Program
(a) Establishment of program
(1) In general
There is established in the Department of the Treasury the Natural Disaster Risk Reinsurance Program, which shall apply only to covered events occurring on or after January 1, 2026.
(2) Goal
The goal of the Program shall be to protect insurers from insolvency resulting from covered events of a significant magnitude in a manner that provides for affordability of coverage in the marketplace for losses from such covered events.
(3) Authority of Secretary
Notwithstanding any other provision of State or Federal law, the Secretary shall administer the Program, in consultation with the Director of the Federal Insurance Office, and shall make payments to States in accordance with subsection (b) to cover insured losses.
(4) Voluntary participation
(A) In general
Participation in the Program shall be voluntary on the part of a State, subject to the requirements under paragraph (4).
(B) Election
The Secretary shall provide a procedure by which States may elect to participate in the Program.
(C) Termination of participation
The Secretary shall provide a procedure by which States may elect to terminate participation in the Program, which shall require advance notice to the Secretary of not less than 180 days before such termination is effective.
(5) Required State plan
To be eligible to participate in the Program a State shall have in effect a plan, approved by the Secretary, that provides such assurances to the Secretary as the Secretary considers necessary—
(A)
to ensure that insurers will cover claims for insured losses occurring in the State during the participation of the State in the Program not exceeding the trigger amount for the State under subsection (b)(2);
(B)
to ensure that insurers submit to the State insurance regulator and the State insurance regulator submits to the Secretary, in accordance with such reasonable procedures as the Secretary may establish, information sufficient for administration of the Program, including information regarding claims for insured losses occurring in the State, insured losses incurred, and direct written premium for covered insurance in the State;
(C)
to distribute Federal payments under the Program appropriately among insurers based on insured losses suffered by insurers and insurers’ market shares;
(D)
to pledge the State’s full faith and credit toward full repayment to the Secretary, within 10 years of receipt, of any Federal payment amounts provided under subsection (b) and to provide a regular payment schedule over such 10-year period; and
(E)
to provide appropriate treatment under the program for any insurer that is a State residual market insurance entity.
(6) Treatment of existing policies
This Act may not be construed to affect any policy for covered insurance in force on the date of the commencement of participation in the Program by the State in which the dwelling covered by such insurance is located, but the Program shall apply to policies renewed after such date.
(b) Federal payments for excessive insured losses
(1) Federal payment
Pursuant to the occurrence of a covered event, the Secretary shall pay to each participating State an amount equal to the amount by which the aggregate industry-wide insured losses within such participating State resulting from such covered event exceed the trigger amount in effect at such time under paragraph (2) for such participating State for the type of covered event that occurred. The Secretary shall provide for payments under this subsection for a participating State for a covered event to be made in installments of approximately 25 percent of the estimated total amount to be provided for such State in connection with such disaster, as best determined by the Secretary after consideration of the information regarding insured losses provided to the Secretary pursuant to paragraph (2)(D).
(2) State trigger amounts
(A) NAS authority
The Secretary shall enter into an agreement with the National Academy of Sciences (in this paragraph referred to as the Academy
) under which the Academy shall propose to the Secretary, for each participating State and for each different type of covered event, a trigger amount under this paragraph. A trigger amount proposed for a State shall be effective for purposes of the Program only upon review, adjustment if necessary, and approval by the Secretary.
(B) Considerations
The trigger amount proposed by the Academy for a participating State for a type of covered event shall be the lesser of—
(i)
the total direct written premiums for covered insurance in the participating State; and
(ii)
the amount, as determined by the Academy, that when applied under the Program, protects insurers from insolvency in the case of covered event of such type of a severity equal to or exceeding that of a covered event of such type having a two percent chance of occurring in any given year.
(C) Revision
The agreement pursuant to subparagraph (A) shall provide for the Academy to review and revise the proposed trigger amounts for each participating State not less frequently than once every 24 months, and more frequently at the request of the Secretary. Any revised trigger amount may not take effect under the Program before the expiration of the 180-day period beginning upon the provision by the Secretary to such participating State of written notification of such revised trigger amount.
(D) Assessment of insured losses
The agreement pursuant to subparagraph (A) shall provide that following the occurrence of a covered event, the Academy shall, for each participating State affected, make assessments of the insured losses for each such State and provide such information to the Secretary. Such assessments shall be made on an ongoing basis as necessary to make an accurate determination of such insured losses.
(E) Experts
(i) Authority
The agreement pursuant to subparagraph (A) shall provide that, in establishing proposed trigger amounts under this paragraph and assessing insured losses pursuant to subparagraph (D), the Academy may contract with such experts and consultants, including experts in disaster modeling, as it considers appropriate.
(ii) Authorization of appropriations
There is authorized to be appropriated to the National Academy of Sciences such sums as may be necessary for costs of hiring experts and consultants pursuant to clause (i).
(3) Authority to issue bonds to fund Federal payments
(A) Issuance
In connection with a covered event for which the Secretary is required to make a payment under paragraph (1) to a participating State, the Secretary shall issue bonds under this paragraph, the proceeds of which shall be used for making such payment.
(B) Terms
Bonds issued under this paragraph shall be in such form and denominations, and shall be subject to such terms and conditions of issue, conversion, redemption, maturation, and payment as the Secretary may prescribe and shall be fully and unconditionally guaranteed both as to interest and principal by the United States, and such guaranty shall be expressed on the face of each bond.
(C) Interest
Bonds issued under this paragraph shall bear interest at a rate not less than the current average yield on outstanding market obligations of the United States of comparable maturity during the month preceding the issuance of the obligation as determined by the Secretary.
(D) Amount
The aggregate amount of bonds issued under this paragraph in connection with a covered event shall be equal to the aggregate amount of payments made by the Secretary pursuant to paragraph (1) in connection with such covered event and such additional amount as the Secretary considers appropriate to cover any administrative costs incurred by the State in connection with borrowing under this paragraph in connection with such covered event.
(E) Treatment
All bonds issued under this paragraph, and the interest on or credits with respect to such obligations, shall not be subject to taxation by any State, county, municipality, or local taxing authority.
(4) Recoupment of Federal amounts
Each participating State that receives a payment pursuant to paragraph (1) shall repay the Secretary, pursuant to its pledge made in accordance with subsection (a)(4)(D) and within 10 years of such receipt, an amount equal to such payment, together with interest on such amount sufficient to cover the costs to the Secretary of borrowing such amounts pursuant to this paragraph. The Secretary shall cover any amounts repaid pursuant to this paragraph into the general fund of the Treasury.
Sec. 3. Reporting
(a) By States
(1) Annual reports
The Secretary shall require the State insurance regulator for each participating State to submit a report annually to the Secretary regarding each covered event resulting in payment under section 2(b)(1), during the period that any payment amounts for such event have not been fully repaid in accordance with section 2(b)(4), regarding insured losses in the State resulting from such covered event, additional such insured losses expected to be incurred, including the timing of such losses, and any progress in repayment to the Secretary for the Federal payments made.
(2) Final report
The Secretary shall require the State insurance regulator for each participating State receiving a payment under section 2(b)(1) in connection with a covered event to submit to the Secretary, upon full repayment of all such payments made in connection with such covered event, a final report containing such information as the Secretary shall require.
Sec. 4. General authority
(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 for a covered event in a State for which payments have been made by the Secretary under the Program; and
(2)
to prescribe regulations and procedures to effectively administer and implement the Program.
(b) Consultation
The Secretary shall consult with the National Association of Insurance Commissioners, as the Secretary determines appropriate, concerning the Program.
(c) Contracts for services
The Secretary may employ persons or contract for services as may be necessary to implement the Program.
(d) Submission of premium information
(1) In general
The Secretary shall annually compile information on the premium rates of insurers for covered insurance 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 National Association of Insurance Commissioners premium rates for covered insurance, as necessary to carry out paragraph (1), and the National Association of Insurance Commissioners 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.
(e) 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. 5. Definitions
In this Act, the following definitions shall apply:
(1) Affiliate
The term affiliate means, with respect to a participating insurer, any entity that controls, is controlled by, or is under common control with the insurer.
(2) 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, 2026, 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).
(3) Covered event
(A) In general
The term covered event means volcanic eruption, severe storm, tropical storm, hurricane, earthquake, tsunami, fire, tornado, hail, or any other natural disaster not eligible for coverage under the National Flood Insurance Program under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), that is certified by the Secretary as a covered event 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) of whether, during the effective period of the Program, a covered event occurs.
(4) Covered insurance
The term covered insurance means property and casualty insurance coverage for a single-family or multifamily residence, including homeowners insurance, condominium insurance, cooperative insurance, and residential rental insurance. Such term does not include 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.
(5) Insured loss
(A) In general
The term insured loss
means any loss that—
(i)
results from a covered event;
(ii)
is covered by covered insurance issued by an insurer, regardless of whether the insurer is solvent; and
(iii)
occurs within a State.
(B) Included amounts
Such term includes the costs of claims investigation, adjustment, litigation, and all other usual costs paid by the insurer in connection with coverage for covered event.
(6) 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 National Association of Insurance Commissioners, 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; or
(iv)
a State residual market insurance entity;
(B)
that receives direct earned premiums for covered insurance coverage; and
(C)
that meets any other criteria that the Secretary may reasonably prescribe.
(7) Participating State
The term participating State means a State that has elected pursuant to section 2(a)(3) to participate in the Program and has not terminated such participation.
(8) 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.
(9) Program
The term Program means the Natural Disaster Risk Reinsurance Program established by this Act.
(10) Secretary
The term Secretary means the Secretary of the Treasury.
(11) 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, the United States Virgin Islands, and any other territory or possession of the United States.
(12) State insurance regulator
The term State insurance regulator
means, with respect to a State, the regulatory authority responsible for the supervision of insurers.
(13) 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.