Earthquake Hazards Reduction Amendments Act

Earthquake Hazards Reduction Amendments Act - Amends the Earthquake Hazards Reduction Act of 1977 to add carrying out the insurance program established by this Act to the list of duties of the Director of the Federal Emergency Management Agency (FEMA).

Requires the Director to: (1) publish in the Federal Register and in local newspapers in the applicable area a tentative identification of areas subject to earthquake hazards; (2) notify the chief executive officer of communities in any such areas not already participating in the national earthquake insurance program of the identification, and of loss reduction measures as provided in this Act; (3) on a continuing basis, identify earthquake related factors in any earthquake-prone area; (4) make information available to the public and any agency or official regarding an earthquake hazard, the insurance program, and estimated actuarial premium rates and chargeable premium rates under the insurance program; and (5) encourage local officials to disseminate information widely.

Allows communities identified to apply to participate in the insurance program or, within 90 days of notification, submit technical data establishing that the community is not earthquake-prone.

Requires the Director to appoint an earthquake insurance advisory committee.

Requires the National Institutes of Standards and Technology to develop comprehensive criteria for State and local land use and management ordinances, building codes, and other loss reduction measures, and to periodically update the criteria. Requires the Director to coordinate with and provide technical assistance to State, interstate, and local officials and agencies.

Prohibits participation in the insurance program unless the appropriate public body has adopted and is enforcing loss reduction measures in conformance to this Act.

Prohibits coverage of any property declared to be in violation of State or local law regulating location or construction in earthquake-prone areas.

Requires earthquake insurance coverage in certain amounts in order to get Federal financial assistance for acquisition or construction in an earthquake-prone area. Requires each Federal instrumentality regulating financial institutions to issue regulations requiring earthquake insurance coverage on any loan secured by improved real estate or a mobile home in an earthquake-prone area. Exempts State-owned property that is covered under an adequate State policy of self-insurance from these requirements.

Requires each Federal instrumentality regulating financial institutions to issue regulations requiring that, in connection with the making, increasing, extending, or renewing of any loan secured by improved real estate or a mobile home in an earthquake-prone area, the purchaser or lessee be notified that: (1) the area has been identified as earthquake-prone; and (2) Federal earthquake disaster relief may not be available if the community does not participate in the program or if the property is not covered in the required amount.

Prohibits Federal financial assistance for acquisition or construction in an earthquake-prone area unless the community in which the area is located is participating in the insurance program. Requires each Federal instrumentality regulating financial institutions to issue regulations prohibiting loans secured by improved real estate or a mobile home located in such an area unless the community is participating.

Authorizes the Director to establish and carry out a national program to provide insurance against loss resulting from physical damage to or loss of real property or related personal property, in the United States, arising from any earthquake.

Conditions operation of the program on participation by private insurers representing at least 80 percent of the net written premiums for homeowners' multiple peril insurance written in the United States. Requires private insurers participating in the program to reimburse the Director for 15 percent of all costs that exceed the amounts in the Insurance Fund established under this Act. Allows the Director to arrange for participation, on other than a risk-sharing basis, by private insurers, insurance agents and brokers, insurance adjustment organizations, and other persons.

Provides for the scope of the program and the terms and limitations of insurance coverage.

Requires the Director: (1) to set chargeable premium rates and associated terms and conditions; (2) in establishing rates that are less than actuarial rates, to consider the objective of making the insurance available at reasonable cost. Requires, notwithstanding other provisions of this Act, that the rate with respect to new construction or substantial improvement of property, started after identification of an area as earthquake-prone becomes final, not be less than the actuarial rate. Sets forth special rules for newly eligible construction.

Requires the Director to establish in the Treasury a National Earthquake Insurance Fund. Authorizes the Director to borrow from the Treasury to the extent that the assets of the Fund are insufficient to pay claims and expenses.

Authorizes appropriations.

Requires the Director, upon establishment of the insurance program, to establish a national earthquake excess loss reinsurance program, to be available only to private insurers that are participating in the insurance program.

Allows reinsurance coverage to cover not more than 90 percent of the losses of each private insurer that are in excess of ten percent of the insurer's countrywide subject net written premium after the insurance industry has sustained losses in certain lines that exceed ten percent of the industry countrywide subject net written premium.

Specifies the covered lines of insurance. Requires any private insurer that purchases reinsurance to purchase coverage for all the lines.

Requires the Director to establish premium rates.

Prohibits reinsurance liability for property declared in violation of State or local law regulating location or construction in earthquake-prone areas or that is otherwise uninsurable at the time it is insured by the private insurer.

Requires the Director to establish in the Treasury a National Earthquake Reinsurance Fund. Authorizes the Director to borrow from the Treasury, with a limit on obligations outstanding at any one time, to the extent that the assets of the Fund are insufficient to pay claims and expenses.

Authorizes appropriations.