US HB6274

Establishes a Natural Disaster Risk Reinsurance Program within the Department of Treasury, effective January 1, 2026, to protect insurers from insolvency due to major natural disasters including hurricanes, earthquakes, wildfires, tornadoes, and volcanic eruptions

State participation is voluntary; participating states must submit Secretary-approved plans ensuring insurers cover claims up to state-specific trigger amounts, with states pledging full faith and credit to repay federal payments within 10 years

Federal payments to states are triggered when aggregate industry-wide insured losses from a covered event exceed the state's trigger amount, which is set by the National Academy of Sciences based on a 2% annual probability threshold

Treasury Secretary authorized to issue U.S.-guaranteed bonds to fund disaster payments, with bonds exempt from state and local taxation; repayments from states returned to general Treasury fund

Covered insurance includes homeowners, condominium, cooperative, and residential rental insurance, but excludes flood insurance covered under the National Flood Insurance Program and private mortgage insurance