Hurricane Hazard Reduction Act

TABLE OF CONTENTS:

Title I: Participation by States in Adoption of Hazard

Reduction of Measures

Title II: National Hurricane Insurance Program

Title III: National Hurricane Excess Loss Reinsurance

Hurricane Hazard Reduction Act - Title I: Participation by States in Adoption of Hazard Reduction Measures - (Secs. 101 and 102) Directs the Director of the Federal Emergency Management Agency (the Director) to: (1) identify and publish in the Federal Register those States and areas exposed to significant hurricane hazards; (2) develop comprehensive loss-reduction criteria and accompanying regulations for State and local land use ordinances and building codes; and (3) provide technical assistance to governmental entities to implement such loss-reduction measures.

(Sec. 103) Establishes the Hurricane Loss Mitigation Advisory Committee (the Committee) to review the loss reduction criteria and advise the Director accordingly.

(Sec. 104) Mandates that: (1) a percentage of hurricane insurance premiums collected under the Primary Insurance Program (established by this Act) be deposited annually in a separate Self-Sustaining Mitigation Fund (the Fund); (2) the Fund be used to support designated hurricane hazard reduction activities; and (3) the Director provide assistance to a hurricane education program.

(Sec. 106) Prohibits making any federally related mortgage loan secured by residential property located in a hurricane zone unless the property securing the loan has hurricane insurance.

(Sec. 107) Requires Federal regulatory agencies to prohibit the lending institutions under their purview from participating in federally related mortgage loans secured by improved real estate or a mobile home located in a hurricane-prone State if neither the State nor the property is in compliance with this Act.

Title II: National Hurricane Insurance Program - (Secs. 201-203) Requires the Director to: (1) establish a national hurricane insurance program for residential properties and additional properties if so indicated by further studies); and (2) establish insurability criteria for residential property.

(Secs. 204 and 205) Authorizes the Director to prescribe actuarial premium rates for residential property insurance coverage. Directs the Director, based upon such rates, to prescribe chargeable premium rates for hurricane coverage.

(Sec. 207) Establishes the Hurricane Insurance and Reinsurance Advisory Committee to: (1) review the Director's draft plan of operation for the national hurricane insurance program; and (2) submit to the Director and the Congress biannual evaluations of the Primary Insurance Program and the Reinsurance Program established by this Act.

(Sec. 208) Establishes the Residential Property Insurance Fund to implement the Primary Insurance Program and to reimburse private insurers providing hurricane coverage.

(Sec. 209) Authorizes the Director to borrow from the Treasury if the Insurance Fund cannot pay claims and expenses.

Title III: National Hurricane Excess Loss Reinsurance Program - (Secs. 301-303) Requires the Director to: (1) establish a national hurricane excess loss insurance program to provide reinsurance coverage to private insurers and reinsurers for hurricane-related losses that would otherwise be ineligible for coverage under this Act; (2) provide excess loss reinsurance coverage for designated lines of insurance; and (3) establish rates for excess loss reinsurance coverage.

(Sec. 305) Establishes the Reinsurance Fund to implement the Reinsurance program. Authorizes the Director to borrow from the Treasury if the Fund cannot pay claims and expenses.