Definitions

In this Act, the following definitions shall apply: (1) Affiliate The term affiliate means, with respect to a participating insurer, any entity that controls, is controlled by, or is under common control with the insurer. (2) Control (A) In general An entity has control over another entity, if— (i) 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; (ii) the entity controls in any manner the election of a majority of the directors or trustees of the other entity; or (iii) 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. (B) Rule of construction An entity, including any affiliate thereof, does not have control over another entity, if, as of January 1, 2026, 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). (3) Covered event (A) In general The term covered event means volcanic eruption, severe storm, tropical storm, hurricane, earthquake, tsunami, fire, tornado, hail, or any other natural disaster not eligible for coverage under the National Flood Insurance Program under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), that is certified by the Secretary as a covered event for purposes of this Act. (B) Nondelegation The Secretary may not delegate or designate to any other officer, employee, or person, any certification under subparagraph (A) of whether, during the effective period of the Program, a covered event occurs. (4) Covered insurance The term covered insurance means property and casualty insurance coverage for a single-family or multifamily residence, including homeowners insurance, condominium insurance, cooperative insurance, and residential rental insurance. Such term does not include 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. (5) Insured loss (A) In general The term insured loss means any loss that— (i) results from a covered event; (ii) is covered by covered insurance issued by an insurer, regardless of whether the insurer is solvent; and (iii) occurs within a State. (B) Included amounts Such term includes the costs of claims investigation, adjustment, litigation, and all other usual costs paid by the insurer in connection with coverage for covered event. (6) Insurer The term insurer means any entity, including any affiliate thereof— (A) that is— (i) licensed or admitted to engage in the business of providing primary or excess insurance in any State; (ii) 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 National Association of Insurance Commissioners, or any successor thereto; (iii) approved for the purpose of offering property and casualty insurance by a Federal agency in connection with maritime, energy, or aviation activity; or (iv) a State residual market insurance entity; (B) that receives direct earned premiums for covered insurance coverage; and (C) that meets any other criteria that the Secretary may reasonably prescribe. (7) Participating State The term participating State means a State that has elected pursuant to section 2(a)(3) to participate in the Program and has not terminated such participation. (8) Person 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. (9) Program The term Program means the Natural Disaster Risk Reinsurance Program established by this Act. (10) Secretary The term Secretary means the Secretary of the Treasury. (11) State 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, the United States Virgin Islands, and any other territory or possession of the United States. (12) State insurance regulator The term State insurance regulator means, with respect to a State, the regulatory authority responsible for the supervision of insurers. (13) Rule of construction for dates With respect to any reference to a date in this Act, such day shall be construed— (A) to begin at 12:01 a.m. on that date; and (B) to end at midnight on that date.