Sec. 4. Functions
219 words·~1 min read·
/bill/113/hr/737/ih/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Consortium shall— work with all States, particularly those participating in the Consortium, to gather and maintain an inventory of catastrophe risk obligations held by State reinsurance funds, State residual insurance market entities, and State-sponsored providers of natural catastrophe insurance; at the discretion of the affected members and on a conduit basis, issue securities and other financial instruments linked to the catastrophe risks insured or reinsured through members of the Consortium in the capital markets; coordinate reinsurance contracts between participating, qualified reinsurance funds and private parties; act as a centralized repository of State risk information that can be accessed by private-market participants seeking to participate in the transactions described in paragraphs
(2)and
(3)of this section; establish a catastrophe risk database to perform research and analysis that encourages standardization of the risk-linked securities market; perform any other functions, other than assuming risk or incurring debt, that are deemed necessary to aid in the transfer of catastrophe risk from participating States to private parties; and submit annual reports to Congress describing the activities of the Consortium for the preceding year, and the first such annual report shall include an assessment of the costs to States and regions associated with catastrophe risk and an analysis of the costs and benefits, for States not participating in the Consortium, of such nonparticipation.