Overview

• Creates a temporary bipartisan Commission on Catastrophic Disaster Risk and Insurance to study insurance market problems after major hurricanes in 2004-2005
• Commission has 90 days after member appointments to deliver recommendations to Congress and the President
• Bill authorizes $5 million in funding for commission operations

Who does this affect?

• Main groups: Insurance companies, homeowners in disaster-prone areas, mortgage lenders, state insurance regulators, taxpayers who fund disaster relief
• Who benefits: Insurance industry gets potential federal support; consumers could gain access to more affordable catastrophe insurance; states get federal guidance on insurance regulation
• Who loses: Taxpayers fund the $5 million commission; no guarantee of actual policy changes after study concludes
• Teen impact score: 2/10 (symbolic study with no direct teen programs or services)

What This Bill Does

• Establishes 14-member commission: FEMA Director, NOAA Administrator, plus 12 experts (consumer advocate, insurance/reinsurance reps, state regulator, scientist, risk management professors, homebuilder, mortgage lender, antitrust lawyer)
• Congressional leaders (Senate/House majority and minority leaders) must unanimously agree on all 12 appointed members
• Commission must assess insurance market conditions after 2004-2005 hurricanes and evaluate three specific proposals from 109th Congress: federal catastrophe fund (S.3117), tax-deferred insurer accounts (S.3115), tax-free policyholder accounts (S.3116)
• Report deadline: 90 days after final member appointed; commission dissolves 60 days after submitting report
• Commission powers: Subpoena authority, can hold hearings domestically and internationally, access confidential government data, hire staff at GS-18 pay scale (approximately $140,000/year in 2007)
• Funding cap: $5 million total for all commission activities including staff salaries, travel, consultants, and administrative support

Legislative Status

• Introduced in House on January 17, 2007
• Referred to House Committee on Financial Services; no further action recorded

In short

• Bill creates temporary expert commission to study why catastrophe insurance became scarce and expensive after major hurricanes
• Commission has 90 days to recommend federal solutions like reinsurance programs or tax changes for insurers
• Commission gets $5 million, dissolves after delivering report
• Creates no actual insurance programs—only studies the problem and suggests fixes
• Bipartisan appointment process requires unanimous agreement from four Congressional leaders

Why should I care?

When disasters strike, families need insurance to rebuild homes and restart lives. After Katrina, Rita, and Wilma caused $200 billion in damage, insurance companies struggled to cover losses, making policies harder to find and more expensive. This affects mortgage availability since lenders require property insurance. The federal government already spends billions on disaster relief, so figuring out how to stabilize insurance markets saves taxpayer money long-term. This bill doesn't fix the problem directly—it creates a study group to recommend solutions. Whether those recommendations become law depends on future Congressional action.