Disaster Insurance Act

Summary

Disaster Insurance Act - States that it is the purpose of this Act to assure the widest possible provision of adequate insurance coverage against catastrophic losses resulting from disasters by requiring such coverage in the case of residential housing and small business receiving Federal assistance, by encouraging the purchase of such coverage by property owners in all other cases, and by creating a new federally chartered quasi-public entity to assist the private insurance industry, through risk-sharing reinsurance and otherwise, in making such coverage available on the widest possible basis and facilitating its provision and administration. Requires that no officer or agency of the United States shall make or enter into a contract or commitment to make any grant or loan, or provide or enter into a contract or commitment to provide assistance in the form of mortgage insurance or loan guaranty or in any other form, to aid in the purchase, construction, rehabilitation, or maintenance of residential real property which is designed principally for the occupancy of from one to four families or of nonresidential property which is owned or leased and operated by one or more small businesses, unless the property involved is or will upon completion be covered (as a part of the coverage provided under a fire or extended coverage insurance policy or otherwise) by insurance against catastrophic losses. States that no loan or other financial assistance to aid in the purchase, construction, rehabilitation, or maintenance of residential real property which is designed principally for the occupancy of from one to four families or of nonresidential property which is owned or leased and operated by one or more small businesses shall be made or provided by any financial institution or other lender the deposits or accounts of which are insured by an agency of the Federal Government, or which is itself regulated by an agency of the Federal Government, unless the property involved is or will upon completion be covered (as a part of the coverage provided under a fire or extended coverage insurance policy or otherwise) by insurance against catastrophic losses. Establishes a Disaster Insurance Corporation. States that the basic function of the Corporation is to encourage and facilitate the provision by private insurance companies of insurance against catastrophic losses for owners and lessors of real property of reinsuring such companies (directly or by purchasing policies of reinsurance) against abnormally high losses resulting from the provision of such insurance. Provides that if at any time catastrophic insurance is unavailable from private industry, the Corporation shall provide such insurance through the facilities of the Federal Government. Establishes in the Treasury of the United States a fund to be used by the Corporation for its operating and capital expenses under this Act. Authorizes to be appropriated to the fund out of any money in the Treasury not otherwise appropriated, not to exceed $100,000,000 to provide such fund with necessary initial capital.

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1 official file

• Introduced in House

  summary · EN · 11 March 1975

  Open at official source

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