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Code · BILL · 116th Congress · H.R. 7011 (Introduced in House) — To establish a Pandemic Risk Reinsurance Program, and for other purposes. · Sec. 8

Sec. 8. Study and analyses

545 words·~2 min read·/bill/116/hr/7011/ih/section-8·

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The Secretary, in consultation with the NAIC, representatives of the insurance industry and of policy holders, other experts in the insurance field, and other experts as needed, shall assess the effectiveness of the Program and the likely capacity of the property and casualty insurance industry to offer insurance for risk of public health emergencies after termination of the Program, and the availability and affordability of such insurance for various policyholders. The Secretary shall submit a report to the Congress on the results of the study conducted under paragraph
(1)not later than the expiration of the 12-month period beginning on the date of the enactment of this Act. The President's Working Group on Financial Markets, in consultation with the National Association of Insurance Commissioners, representatives of the insurance industry, representatives of the securities industry, and representatives of policy holders, shall perform an ongoing analysis regarding the long-term availability and affordability of insurance for risk of public health emergencies. Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act and every two years thereafter, the President's Working Group on Financial Markets shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on its findings pursuant to the analysis conducted under paragraph (1). The Comptroller General of the United States shall conduct a study to determine whether there are specific markets in the United States where there are unique capacity constraints on the amount of business interruption insurance available. The study required by paragraph
(1)shall contain— an analysis of both insurance and reinsurance capacity in specific markets, including pricing and coverage limits in existing policies; an assessment of the factors contributing to any capacity constraints that are identified; and recommendations for addressing those capacity constraints. Not later than 180 days after the date of enactment of this Act, the Comptroller General shall submit a report on the study required by paragraph
(1)to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act and every two years thereafter, the Secretary shall conduct a study of small insurers (as such term is defined by regulation by the Secretary) participating in the Program, and identify any competitive challenges small insurers face in the business interruption insurance marketplace, including— changes to the market share, premium volume, and policyholder surplus of small insurers relative to large insurers; how the business interruption insurance market for risk of public health emergencies differs between small and large insurers, and whether such a difference exists within other perils; the impact of the Program’s availability on small insurers; the effect of increasing the trigger amount for the Program under section 4(e)(1)(B) on small insurers; the availability and cost of private reinsurance for small insurers; and the impact that State workers compensation laws have on small insurers and workers compensation carriers in the business interruption insurance marketplace. The Secretary shall submit a report to the Congress setting forth the findings and conclusions of each study required under paragraph (1).
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