Natural Disaster Protection and Insurance Act of 1995

Natural Disaster Protection and Insurance Act of 1995 - Amends the Earthquake Hazards Reduction Act of 1977 (the Act) to require the Director of the Federal Emergency Management Agency (FEMA) to establish programs which mitigate the effects of natural disasters.

(Sec. 6) Requires that all Federal buildings satisfy specified seismic design requirements.

Requires the FEMA Director to enter into an agreement with the Director of the National Academy of Sciences to study the feasibility of establishing national minimum consensus building construction standards.

Instructs the Director to classify States likely to experience an earthquake, volcanic eruption, tsunami, windstorm, or hurricane perils as natural disaster-prone States.

Requires each disaster-prone State to adopt building codes for new or substantially modified buildings that satisfy natural disaster hazard mitigation standards. Allows States to alternatively certify that the local communities have adopted appropriate portions of model building codes. Orders each State with flood-prone communities to adopt flood protection measures.

Directs each natural disaster-prone State to develop disaster mitigation plans. Requires each plan to: (1) ensure compliance with building and safety codes; (2) improve emergency response to natural disasters; (3) develop standards and guidelines for training emergency response teams; (4) enforce local land use ordinances; (5) address the impact of development in disaster-prone areas; (6) develop voluntary training programs for developers; and (7) identify essential facilities.

Requires each natural disaster-prone State to submit a mitigation plan to FEMA within two years of this Act's enactment. Authorizes the Director to reduce assistance to a State which does not comply.

Prohibits the receipt of mitigation funds for States not in compliance.

Instructs the Director to distribute mitigation account funds on a pro rata formula based on the State's primary insurance coverages and reinsurance coverage premiums.

Prohibits the Director from requiring the States to comply with unfunded mandates.

(Sec. 7) Amends the Act to provide a new title III concerning natural disaster insurance. Directs the Secretary of the Treasury to grant loans to a private, non-profit Natural Disaster Insurance Corporation (Corporation) to provide primary insurance coverage and reinsurance coverage for natural disasters. Establishes procedures for selecting the Board of Directors and the Administrator of the Corporation. Grants the Corporation the power to provide primary insurance coverage and reinsurance coverage, as well as to manage trust accounts, raise funds, and take other necessary actions.

Directs the Board of Directors to develop a plan of operation. Requires the Board to prepare a written report on the Corporation's operations each year.

Directs the Board to develop insurance rates using actuarial principles.

Establishes an independent National Disaster Insurance Board of Actuaries to review and approve the Corporation's operations.

Requires the Board to file copies of the rates charged for primary insurance coverage, as well as any related insurance forms, with each State's insurance commission.

Directs the Corporation to establish and maintain a Primary Insurance Coverage Trust Account. Authorizes the Account to hold funds which have been generated through the primary insurance coverages. Instructs the Board to deposit in the primary accounts the portions of the premiums collected by private insurers servicing the primary insurance coverage policies. Establishes requirements for reinsurance repayments.

Prohibits the use of unauthorized Federal funds.

Directs the Comptroller General to periodically audit the Corporation and the Independent Board of Actuaries.

Prohibits the Corporation from using Federal funds unless the Corporation issues primary insurance coverage that covers losses for eligible property owners.

Provides that the primary insurance coverage issued under such title shall be supplemental coverage provided in conjunction with a standard residential property insurance contract. Prohibits certain residential property owners from receiving any financial assistance.

Sets forth coverage terms and conditions.

Requires the Director to submit to the Congress a determination of whether to take other measures to ensure that policyholders purchase Federal flood insurance. Requires all private insurers to place a warning statement on future residential property insurance contracts to alert policyholders of flood insurance policies, terms, and conditions.

Prohibits the Corporation from receiving Federal loans unless it makes excess reinsurance coverage policies available to eligible parties.

Directs the Board to set the terms and conditions of the reinsurance coverage.

States that the reinsurance account shall provide excess coverage when the Board determines that the insurance industry is likely to incur gross losses that exceed 15 percent of the consolidated industry surplus as a result of natural disasters. Establishes standards for the Board to issue reinsurance account payments.

(Sec. 8) Amends the Act to establish in the Treasury the Natural Disaster Protection Fund. Divides the Fund into a private loss account, a public loss account, and a mitigation account. Prohibits commingling the accounts.

Provides that Fund accounts shall be used to cover shortfalls in the primary insurance account and the reimbursement account.

Permits the Secretary of the Treasury to use the public loss account to cover losses to public facilities. States that the Federal share of a grant provided from the public loss account shall be 75 percent if the State has complied with all requirements.

Directs the Corporation to pay a percentage of the annual net premiums for natural disaster mitigation programs.

(Sec. 9) Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to allow the President to make contributions to State or local governments for disaster relief if the State has paid at least $5.00 per resident for the repair, restoration, or replacement of public facilities damaged during the disaster.

Requires a Federal share of 75 percent of the cost of repair, restoration, and replacement of damaged facilities, as well as 75 percent of the cost of debris removal. Waives such requirements under certain conditions.