S.2533 - Earthquake and Volcanic Eruption Hazard Reduction Act102nd Congress (1991-1992)
Summary: S.2533 — 102nd Congress (1991-1992)
Introduced in Senate (04/07/1992)
Earthquake and Volcanic Eruption Hazard Reduction Act - Amends the Earthquake Hazards Reduction Act of 1977 to mandate identification of earthquake-prone and volcanic eruption-prone States.
Establishes the Earthquake and Volcanic Eruption Loss Mitigation Advisory Committee.
Requires development of comprehensive earthquake and volcanic eruption loss-reduction criteria for State and local land use and management ordinances, building codes, and other measures.
Requires that a percentage of the annual earthquake and volcanic eruption insurance and excess reinsurance premiums collected under the Primary Insurance program enacted by this Act be deposited in the Self-Sustaining Mitigation Fund to support specified hazard reduction activities. Requires the Director to support public education programs.
Provides for assistance, to the extent provided for in appropriations Acts, to States which are in compliance with the loss-reduction criteria of this Act to support development and implementation of mitigation plans.
Prohibits making, increasing, extending, or renewing any federally-related mortgage loan secured by: (1) residential property in an earthquake-prone or volcanic eruption-prone State unless the property is covered by earthquake and volcanic eruption insurance coverage under this Act or equivalent private insurance; or (2) improved real estate or a mobile home located in an earthquake-prone or volcanic eruption-prone State if the State is not in compliance with the loss-reduction criteria of this Act and the property does not meet minimum mitigation criteria.
Establishes the Primary Insurance Program against loss from any earthquake or volcanic eruption. Requires the Director to arrange for participation, on other than a risk-sharing basis, by private insurers, insurance agents and brokers, insurance adjustment organizations, and others. Mandates development of a plan of operation for the Insurance Fund and the Reinsurance Fund. Limits Program coverage to residential property in earthquake-prone or volcanic eruption-prone States.
Establishes an independent advisory committee in the executive branch to be known as the Earthquake and Volcanic Eruption Insurance and Reinsurance Advisory Committee.
Establishes in the Treasury the Residential Property Insurance Fund to carry out the Primary Insurance Program. Credits to the Insurance Fund premiums received by the Program.
Requires, if gross reimbursements to private insurers exceed amounts in the Insurance Fund, loans from the industry for ten percent of the additional losses, with the remaining amounts borrowed from the Treasury and backed by the full faith and credit of the United States.
Requires the Director to make reinsurance and excess reinsurance available to private insurers participating in the Program and their reinsurers. Provides for the excess reinsurance liability of the insurance industry and the Federal Government. Specifies the lines of insurance for which reinsurance coverage must be provided.
Establishes in the Treasury the Reinsurance Fund to carry out the excess loss reinsurance program. Credits to the Fund any reinsurance premiums received under the excess loss reinsurance program and amounts borrowed from the Treasury under this Act.
Requires the Director, to the extent that the Reinsurance Fund is insufficient to pay claims and expenses, to issue to the Secretary of the Treasury obligations to cover the insufficiency.