Natural Disaster Protection and Insurance Act of 1999

Natural Disaster Protection and Insurance Act of 1999 - Amends the Earthquake Hazards Reduction Act of 1977 (the Act) to provide for an expanded Federal program of hazard mitigation, relief, and natural disaster insurance.

(Sec. 6) Requires each State to either: (1) develop a statewide strategic mitigation plan (plan) to reduce hazards of future natural disasters; or (2) designate a plan in effect at the time as the applicable plan. Outlines required plan elements, including: (1) ensuring that structures in hazard-prone areas are built with hazard mitigation techniques; and (2) improving the capabilities of emergency response teams to natural disasters. Requires the Director of the Federal Emergency Management Agency to review and approve a plan if it contains the required elements. Requires such plans to be submitted to the Director within two years after enactment of this Act. Outlines procedures regarding plan implementation, plan updates, and noncompliance with plan requirements (including an opportunity to cure). Denies hazard mitigation funds for any State which is still non-compliant 180 days after receiving from the Director notification of noncompliance.

Authorizes the Director to allocate funds to States from the Natural Disaster Protection Fund, according to a pro rata formula based on reinsurance coverage premiums. Requires States to use allocated funds to support specified natural disaster hazard mitigation activities. Requires the Director, at least once every three years, to evaluate each State's progress in implementing its plan, and to base future allotments on such evaluation.

Directs the Comptroller General to: (1) conduct a study to identify all Federal programs that provide assistance for public facilities and lifelines; and (2) report to Congress on study results.

Authorizes appropriations.

(Sec. 7) Directs the Secretary of the Treasury to grant loans to a private, non-governmental, and nonprofit membership corporation to be known as the Natural Disaster Insurance Corporation. Requires the Corporation to provide reinsurance coverage for hurricanes, earthquakes, volcanic eruptions, tsunamis, windstorms, and wildfires. Requires Corporation members to own shares in the Corporation and to consist of private insurers and State insurance pools that purchase the reinsurance coverage provided by the Corporation. Outlines Corporation administrative procedures, including: (1) the naming of a Corporation administrator; (2) loans for start-up costs; and (3) the election of a Board of Directors. Requires the Corporation to develop a plan of operation describing Corporation administration and the provision of insurance coverages. Directs the Natural Disaster Insurance Board of Actuaries to review and approve such plan and any amendments thereto. Requires the Board of Directors to report annually to Corporation members and the Independent Board of Actuaries on Corporation operations.

Directs the Corporation to carry out a program to make reinsurance coverage available through contracts for such coverage for purchase only: (1) by eligible State programs; and (2) through auctions. Requires each contract to provide insurance coverage against residential property losses to homes and the contents of apartment buildings and to cover all the natural disasters named above.

Makes a program eligible to purchase an insurance or reinsurance contract under this section only if such program is a State-operated program that meets specified requirements, including: (1) the offering of residential property and apartment content coverage; and (2) mitigation provisions that require not less than ten percent of the net investment income of the State insurance or reinsurance program to be used to mitigate losses from natural disasters for which the State program was established. Outlines coverage requirements and contract terms and conditions.

Directs the Corporation to carry out a program to auction on a regional basis contracts for reinsurance coverage to private insurers and reinsurers, State insurance and reinsurance programs, and other interested entities. Requires the Corporation, in such auction, to set a reserve price as the lowest price for that contract, to be determined based upon specified factors such as risk and administrative costs. Provides auction contract terms and conditions.

Requires the Corporation, in making reinsurance coverage available, to provide a conditional minimum level of retained losses (similar to a deductible) and a maximum level of Federal liability for losses from a single covered event.

Establishes the Independent Natural Disaster Board of Actuaries to review and approve the Corporation plan of operation and to advise the Corporation regarding the estimated loss costs associated with the contracts for reinsurance coverage and carrying out Corporation functions. Requires the Corporation, within 15 months after enactment of this Act, to submit to the Independent Board a draft plan of operation. Provides for plan approval (with an opportunity to cure if disapproved) and plan amendments. Requires the Independent Board to prepare and submit to the Secretary a report on its findings regarding such plan.

Requires the Corporation Board of Directors to submit to the Independent Board for approval proposed prices and reserve prices for reinsurance contracts issued by the Corporation. Provides for Independent Board approval of such prices (with an opportunity to cure if not immediately approved).

Directs the Corporation to establish and maintain a Reinsurance Coverage Trust Account to: (1) hold funds collected from insurance payments and investments; and (2) pay claims to entities that have purchased reinsurance coverage. Directs the Secretary to provide direct loans to such Account to the extent that accumulated assets are insufficient to pay reinsurance claims and expenses. Requires recoupment from the Corporation of such direct loans and interest.

Prohibits any Federal funds from being authorized or appropriated to fund any Corporation activity.

Directs the Comptroller General, every three years, to conduct audits of activities of the Corporation and the Independent Board. Requires audit results to be submitted to Congress.

(Sec. 8) Establishes in the Treasury the Natural Disaster Protection Fund and establishes in such Fund a Private Loss Account and a Mitigation Account. Requires the Private Loss Account to be used to provide direct Federal loans to cover shortfalls in the Corporation's reinsurance account. Requires the Mitigation Account to support natural disaster hazard mitigation activities.

Authorizes appropriations to the Mitigation Account for FY 2000 and annually thereafter for prenatural disaster mitigation activities conducted under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.