Sec. 3. Definitions
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In this Act, the following definitions shall apply: The term covered public health emergency means any outbreak of infectious disease or pandemic— for which the Secretary of Health and Human Services determines, or renews or extends a determination that, a public health emergency exists under section 319 of the Public Health Service Act ( 42 U.S.C. 247d ) due to a significant outbreak of infectious disease; and that is certified by the Secretary as a covered public health emergency for purposes of this Act.
The Secretary may not delegate or designate to any other officer, employee, or person, any certification under subparagraph (A)(ii) of whether, during the effective period of the Program, a covered public health emergency exists. The term affiliate means, with respect to an participating insurer, any entity that controls, is controlled by, or is under common control with the insurer. The term business interruption insurance means commercial lines of property and casualty insurance coverage, other non-property contingent business interruption insurance, provided or made available for losses resulting from periods of suspended business operations, including losses resulting from a covered public health emergency, or a civil order related to a covered public health emergency, whether provided under broader coverage for property and casualty losses or separately.
The term commercial property insurance means property insurance which indemnifies an owner or user of property at a fixed location or premises for loss or damage or loss of income-producing ability of the property, but the term does not include inland marine, transit, or personal lines insurance. An entity has control over another entity, if— the entity directly or indirectly or acting through 1 or more other persons owns, controls, or has power to vote 25 percent or more of any class of voting securities of the other entity; the entity controls in any manner the election of a majority of the directors or trustees of the other entity; or the Secretary determines, after notice and opportunity for hearing, that the entity directly or indirectly exercises a controlling influence over the management or policies of the other entity.
An entity, including any affiliate thereof, does not have control over another entity, if, as of January 1, 2021, the entity is acting as an attorney-in-fact, as defined by the Secretary, for the other entity and such other entity is a reciprocal insurer, provided that the entity is not, for reasons other than the attorney-in-fact relationship, defined as having control under subparagraph (A). The term Department means the Department of the Treasury. The term economic recovery period means the period beginning with the date of enactment of this Act and ending on December 31 of the fifth year following enactment.
If during the economic recovery period, a covered public health emergency is certified which applies to the whole of the country or to States comprising at least 40 percent of the country’s population, the economic recovery period will be extended until December 31 of the 5th year following such certification. The term event means a trade show, consumer show, exhibition, fair, conference, convention, meeting, seminar, charity event, auction, gala dinner, competition, sporting event, film or television production, award show, or other similar event or production.
The term event cancellation insurance means insurance, including production package insurance, that indemnifies an insured for losses that occur as a consequence of— cancellation, abandonment, delay, or rescheduling (whether full or partial) of an event; or non-appearance at an event of a principal speaker or performer or unavailability of an essential element, including covered key talent or cast members, required for achievement of the event’s purpose. The term insured loss means any loss resulting from an outbreak of infectious disease or pandemic for which a covered public health emergency is certified that is covered by primary or excess property and casualty insurance issued by an insurer if such loss occurs— within the United States; and during the period that the covered public health emergency for such area is in effect.
The term insurer means any entity, including any affiliate thereof— that is— licensed or admitted to engage in the business of providing primary or excess insurance in any State; not licensed or admitted as described in clause (i), if it is an eligible surplus line carrier listed on the Quarterly Listing of Alien Insurers of the NAIC, or any successor thereto; approved for the purpose of offering property and casualty insurance by a Federal agency in connection with maritime, energy, or aviation activity; a State residual market insurance entity or State workers’ compensation fund; or any other entity described in section 4(f), to the extent provided in the rules of the Secretary issued under section 4(f); that receives direct earned premiums for any type of commercial property and casualty insurance coverage, other than in the case of entities described in subsections
(d)and
(f)of section 4; and that meets any other criteria that the Secretary may reasonably prescribe. Such term includes captive insurers and other self-insurance arrangements by municipalities and other entities (such as workers' compensation self-insurance programs and State workers' compensation reinsurance pools). The term NAIC means the National Association of Insurance Commissioners. The term parametric insurance facility means a non-assessable joint underwriting association or pool which has been approved by the Secretary to provide parametric non-damage business interruption insurance for purpose of Section 4(c)(2)(B). The term parametric non-damage business interruption insurance means insurance that compensates the insured for a portion of 180 days’ fixed costs and payroll, as more specifically provided by regulations issued by the Secretary, which is triggered irrespective of physical status or condition of the insured physical location and without need for specific proof of loss upon the following conditions— a certification of covered public health emergency; and the State or local government in which the insured operates has issued a closure order applicable to organizations with the policyholder’s NAICS code. The term participating insurer means, with respect to a calendar year, an insurer that has elected pursuant to section 4(c)(2)(B) to participate in the parametric insurance facility under this Act for such calendar year. The term person means any individual, business or nonprofit entity (including those organized in the form of a partnership, limited liability company, corporation, or association), trust or estate, or a State or political subdivision of a State or other governmental unit. The term Program means the Pandemic Risk Reinsurance Program established by this Act. The term property and casualty insurance — means commercial lines of property and casualty insurance, including excess insurance, workers’ compensation insurance, business interruption insurance, commercial general liability insurance, directors and officers liability insurance, and event cancellation insurance; and does not include— Federal crop insurance issued or reinsured under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ), or any other type of crop or livestock insurance that is privately issued or reinsured; private mortgage insurance (as such term is defined in section 2 of the Homeowners Protection Act of 1998 ( 12 U.S.C. 4901 )) or title insurance; financial guaranty insurance issued by monoline financial guaranty insurance corporations; health or life insurance, including group life insurance; flood insurance provided under the National Flood Insurance Act of 1968 ( 42 U.S.C. 4001 et seq. ); reinsurance or retrocessional reinsurance; commercial automobile insurance; burglary and theft insurance; or surety insurance. The term Secretary means the Secretary of the Treasury. The term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, each of the United States Virgin Islands, and any territory or possession of the United States. The term United States means the several States. With respect to any reference to a date in this Act, such day shall be construed— to begin at 12:01 a.m. on that date; and to end at midnight on that date.
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