Representative Maloney Reintroduces the Pandemic Risk Insurance Act
Last week, Representative Carolyn Maloney (D-NY) reintroduced H.R. 7011, the Pandemic Risk Insurance Act (PRIA), which would establish a federal backstop for pandemic risk. Rep. Maloney first introduced PRIA legislation in May 2020 in response to the COVID-19 pandemic. The proposed legislation would establish the Pandemic Risk Reinsurance Program that would create a system of shared public and private compensation for business insurance losses resulting from future pandemics or public health emergencies. The program would ensure that there is sufficient capacity to cover these losses and protect the economy in case of a resurgence of COVID-19 or potential future pandemics. Rep. Maloney originally introduced this legislation in May of 2020 during and in response to the COVID-19 pandemic. The bill would require the federal government to help maintain marketplace stability and to share the burden alongside the private insurance industry. Congresswoman Maloney made a statement during the official reintroduction of the bill, remarking that “There is a broad consensus that we need a program like the one created by PRIA — to provide business owners and our economy with better stability in the event of any future pandemics.”
PRIA would require insurers to make sure all their property and casualty insurance policies include coverage for insured losses due to covered public health emergencies. The bill would also require insurers to make parametric non-damage business interruption insurance coverage available in their commercial property insurance policies or arrange for such coverage through an affiliate or a parametric insurance company. The coverage would have to include compensation for up to 180 days’ fixed costs and payroll for covered public health emergencies. However, insurers would have the option to arrange for parametric non-damage business interruption coverage through either an affiliate insurer or a parametric insurance facility in which the insurer participates. The federal government, however, would provide a backstop, sharing in the losses incurred by insurers by paying 95% of such insured losses. In addition to quota share reinsurance, the federal government would also provide stop-loss protection. PRIA has been referred to the House Committee on Financial Services.
To view the full bill text of the Pandemic Risk Insurance Act, click here.
Joaquin Altoro Appointed Rural Housing Service Administrator
On Monday, Joaquín Altoro was appointed as administrator of the Rural Housing Service. For nearly three decades, Mr. Altoro has been dedicated to understanding the heart and passion of minority communities and applying his experience and wisdom to provide financing opportunities that spark economic development. Recently, he served as CEO and Executive Director for the Wisconsin Housing and Economic Development Authority (WHEDA). As CEO, Mr. Altoro strategically positioned WHEDA to adopt a holistic approach to leverage affordable housing to grow economic prosperity for historically marginalized communities. This included working with emerging housing developers, many of them people of color, in both urban and rural areas. He also was known for finding new resources to help develop affordable housing, working with development partners such as health care systems and lenders working with underserved communities, and working with Wisconsin’s Native American tribes. Under his guidance, WHEDA was able to enhance its 2021-2022 housing tax credit Qualified Action Plan, encouraging diversity among participating developers and providing greater consideration of the unique needs of rural communities. Prior to WHEDA, he served as Town Bank’s Vice President of Commercial Banking. Mr. Altoro is a graduate of Cardinal Stritch University where he received a Bachelor of Science in Business Management and is a graduate of the African American Leadership Program.