Summary: S.741 — 94th Congress (1975-1976)All Information (Except Text)

There is one summary for S.741. Bill summaries are authored by CRS.

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Introduced in Senate (02/19/1975)

National Catastrophic Disaster Insurance Act - Establishes a program of Federal insurance against catastrophic natural disasters and other such disasters utilizing the private insurance industry, particularly risk-sharing pools of insurance companies, while preserving State regulation.

Establishes, within the office of the Federal Insurance Administrator in the Department of Housing and Urban Development, the position of Assistant Insurance Administrator for Disaster Insurance, who shall head an office of Federal Disaster Insurance.

Authorizes the Secretary of the Department of Housing and Urban Development to: (1) impose and collect an insurance premium surcharge which may not exceed 5 percent and may vary on a statewide regional, country wide basis, or any combination of these; (2) determine and prescribe the terms, conditions, and limitations of the catastrophic disaster insurance program as provided under this Act; (3) purchase reinsurance to the extent deemed appropriate and available; (4) make such disbursements from a special fund established in the U.S. Treasury for operations under this Act in order to reimburse insurance companies in full for claims paid by them for covered losses under the Act's program and for other operating expenses incurred by such companies under the program; and (5) make other disbursements and take other actions necessary to carry out the purposes of the Act.

Extends as mandatory the coverage of castatrophic disasters in each property insurance policy now in effect or hereafter issued, other than motor vehicle insurance policies.

Establishes in U.S. Treasury a fund to be used by the Secretary for operating and capital expenses under this Act.

Forbids coverage of new catastrophic disaster insurance where in violation of State or local laws or where the Secretary determines an area to be of special catastrohpic disaster risk.

Prohibits the duplications of benefits where loss is covered by a valid claim paid under catastrophic disaster insurance under this Act.

Provides for the termination of the Act's program no later than June 30, 1975 if catastrophic disaster insurance equal or increased coverage is provided by private insurance companies.