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(b) Into the Disaster Insurance Fund shall be deposited all insurance premiums collected by the Administrator for insurance issued by him under this title. Into the Disaster Reinsurance Reserve Fund shall be deposited all fees collected by the Administrator in connection with reinsurance made available by him under this title: Provided, howerer, That into the Catastrophe Excess Loss Reinsurance Fund shall be deposited all fees collected in connection with the reinsurance program authorized under the provisions of section 107 (c) of this title.

(c) Moneys in each of the funds may be invested in obligations of the United States or in obligations guaranteed as to principal and interest by the United States. Such obligations may be sold and the proceeds derived therefrom may be reinvested as above provided if deemed advisable by the Administrator. Income from such investment or reinvestment shall be deposited in the respective fund from which the investment was made.

(d) All salvage proceeds realized by the Administrator in connection with insurance made available under this title shall be deposited in the Disaster Insurance Fund ; and all salvage proceeds realized by the Administrator in connection with reinsurance made available under this title shall be deposited in the Disaster Reinsurance Reserve Fund: Provided, however, That any salvage realized by the Administrator in connection with the reinsurance program authorized under the provisions of section 107 (c) of this title shall be deposited in the Catastrophe Excess Loss Reinsurance Fund.

(e) The Administrator is authorized to issue to the Secretary of the Treasury from time to time and have outstanding at any one time, in an amount not exceeding $1,000,000,000 (or such greater amount as may be approved by the President) notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Administrator, with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secre. tary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States of comparable maturities as of the last day of the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to pur. chase any notes and other obligations to be issued hereunder and for such purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Funds borrowed under this section shall be deposited, in such proportions as the Administrator deems advisable, in the Disaster Insurance Fund, the Disaster Reinsurance Reserve Fund, and the Catastrophe Exess Loss Reinsurance Fund,

(f) Moneys in the Disaster Insurance Fund, the Disaster Reinsurance Reserve Fund, and the Catastrophe Excess Loss Reinsurance Fund may be used for the following purposes as deemed necessary by the Administrator:

(1) to enable the Administrator to carry out all functions under this title, including the payment of operating and administrative expenses;

(2) to pay from the Disaster Insurance Fund approvel claims for loss under insurance coverage issued by the Administrator under this title :

(3) to pay from the Disaster Reinsurance Reserve Fund approved claims under reinsurance agreements entered into by the Administrator under this title: Provided, however, That approved claims under reinsurance agreements entered into pursuant to section 107 (c) of this title shall be paid from the Catastrophe Excess Loss Reinsurance Fund; and

(4) to repay to the Secretary of the Treasury sums borrowed from him in accordance with the provisions of subsection (e) of this section. SEC. 113. As used in this title the term "natural disaster" shall mean any flood, tidal wave, hurricane, tornado, blizzard, duststorin, hailstorm or other severe storm, earthquake, explosion, landslide, snowslide, severe freeze, drought, smog, radioactive contamination or other air pollution, or volcanic eruption, TITLE II-MAN-MADE DISASTER INSURANCE AND REINSURANCE SEC. 201. (a) To aid in carrying out the purposes of this Act, the Administrator is authorized to provide reasonable indemnity for war damage consisting of loss of or damage to real and personal property or loss of life or injury to or disease of persons.

(b) The Administrator may provide such indemnity by means of insurance, reinsurance, or otherwise affording

(1) reasonable protection against loss of or damage to real or personal property;

(2) reasonable protection against such liability as may exinst under any workmen's compensation act enacted by any State, District, Territory, or possession of the United States or by the Federal government or occupational disease act, or by way of employer's liability under any such act or the common law for injury, disease or death suffered by an employee and arising out of or in the course of employment;

(3) reasonable compensation for personal injury or death suffered by any civil defense worker in the performance of civil defense activities under appropriate orders;

(4) reasonable compensation for personal injury or death and loss of or damage to real or personal property incurred in the course of performing duties of a civil defense nature pursuant to the direction of the Administrator or State, District, Territorial, or local civil defense authorities, or anyone operating under his or their direction; and

(5) reasonable compensation for personal injury, disease or death caused by the perils of war. (c) From such indemnity the Administrator may make such general exceptions with respect to classes of property or persons as he, with the approval of the President, may deem advisable.

SEC. 202. (a) Such indemnity shall be made available upon the payment of such premium or other charge, and subject to such terms and conditions as the Administrator may establish: Provided, however, That in consideration of the service being rendered to the Nation by those performing duties of a civil defense nature, no contract of insurance or payment of premium or other charge shall be required of those entitled to reasonable compensation pursuant to the provisions of paragraphs (3) or (4) of subsection (b) of section 201 in this title, such compensation being payable upon a showing satisfactory to the Administrator that ihe person on whose account the compensation is claimed to be due in fact suffered injury, disease, or death in the course of performing duties of a civil defense nature under the conditions set forth in either of said paragraphs.

(b) In fixing premiums or charges for indemnity made available under this title, the Administrator shall from time to time establish uniform rates (1) for each type of property with respect to which indemnity is made available pursuant to the provisions of this title, (2) for such protection as is offered against liability set forth in paragraph (2) of subsection (b) of section 201 in this title, and (3) classified according to the legal residence of the person involved, for compensation offered pursuant to the provisions of paragraph (5) of subsection (b) of section 201 in this title.

(c) In order to establish a basis for such rates, the Administrator shall estimate from time to time the average risk involved in each class of coverage offered under this title.

Sec. 203. (a) Indemnity under this title shall be made available only with relation to (1) real or personal property situated in, or persons present in a State in the United States or a District, Territory, or possession of the United States; (2) to personal property in transit between any points located in any of the foregoing; and (3) to transportation facilities touching any point located in any of the foregoing, at the time of occurrence of war damage giving rise to a claim for indemnity under the provisions of this title involving any such property or person.

1b) The Administrator, with the approval of the President, may suspend, retrict, or otherwise limit protection authorized to be made available under this title, in any area to the extent determined necessary or advisable in consideration of the loss of control of such area by the United States to such a degree as to make it impossible or impracticable to provide such protection in such area.

SEC. 204. In determining the reasonableness of protection or compensation made available under the provisions of this title, the Administrator shall take into consideration the value of the property involved, the relative importance to

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the national security of its replacement or repair, and the scale of benefits to which persons incurring injury, disease or death under circumstances giving rise to an approved claim under this title, would be entitled if such claim were to be processed under workmen's compensation or occupational disease law applicable to the jurisdiction in which they were present at the time of suffering injury, disease or death giving rise to such claim: Provided, however, That for this purpose the applicable Federal law shall not be used unless no pertinent States, District, or Territorial law is applicable in such jurisdiction.

SEC. 205. (a) In no event shall the Administrator incur an aggregate liability under this title exceeding $10,000,000,000 in the case of property.

(b) In no event shall the Administrator be liable to pay on an approved claim more than 75 per centum of the declared value of property at the time it is insured or reinsured under the provisions of this title.

(c) Each insurance policy or reinsurance or indemnity agreement entered into under this title shall contain appropriate provisions reserving to the Administrator the right to make payment of approved claims to the extent of 10 per centum of the amount approved within two months after approval of the claim and the balance at any time or times within fourteen months after the date of such approval, upon a finding by the Administrator that such action is advisable to safeguard the Federal credit or the stability of the national economy.

(d) Except as provided in the preceding subsection (c), the Administrator shall arrange for prompt payment of all claims approved in connection with any indemnity made available under this title.

SEC. 206. (a) To carry out the functions authorized by this title, the Administrator shall establish (1) a Property Indemnity Fund, (2) a Workmen's Compensation Reserve Fund, (3) a Civil Defense Indemnity Fund, and (4) a Personal Risk Fund. In the event reinsurance is made available for any of the purposes set forth in paragraphs (1), (2), or (5) of subsection (b) of section 201 in this title, the Administrator shall also establish (1) a Property Indemnity Reinsurance Fund, (2) a Workmen's Compensation Reinsurance Reserve Fund, and (3) a Personal Risk Reinsurance Fund, as the case may be.

(h) All premiums or fees collected for insurance or reinsurance provided under this title shall be deposited in the appropriate fund of the foregoing funds, according to the type of insurance or reinsurance provided.

(c) Moneys in such funds may be invested in obligations of the United States or in obligations guaranteed as to principal and interest by the United States. Such obligations may be sold and the proceeds reinvested as above provided, if deemed advisable by the Administrator. Income from such investment or reinvestment shall be deposited in the respective fund from which the investment was made.

(d) All salvage proceeds realized by the Administrator under this title shall likewise be deposited in the appropriate respective fund.

(e) In order to place and maintain these funds in operative condition, the Administrator is authorizd and empowered to issue to the Secretary of the Treasury from time to time and to have outstanding at any one time, in an amount not exceeding $10,000,000,000 (or such greater amount as may be approved by the President) notes and other obligations in such fornus and denomi. nations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Administrator with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States of comparable maturities as of the last day of the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations to be issued hereunder and for such purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Funds borrowed under this section shall be deposited, in such proportions as the Administrator deems advisable, in such of the foregoing funds as he deems appropriate.

(f) Moneys in the funds established by the Administrator pursuant to this section may be used for the following purposes as deemed necessary by the Administrator:

(1) To enable the Administrator to carry out all functions under this title, including the payment of operating and administrative expenses, whenever feasible drawing moneys from the fund appropriate to the particular program in the course of which such expenses shall be incurred.

(2) To pay from the appropriate fund approved claims for loss under coverage issued under this title: Provided, however, That moneys to pay claims filed pursuant to the provisions of paragraphs (3) and (4) of subsection (b) of section 201 in this title may be taken from any one or more of the funds within the discretion of the Administrator.

(3) To repay to the Secretary of the Treasury sums borrowed from him in accordance with the provisions of subsection (e) of this section. Sec. 207. No indemnity insurance or reinsurance shall be provided under this title for risks eligible for insurance under other Federal programs, or to the extent that coverage is available on reasonable terms from other public or priFate sources.

SEC. 208. In providing insurance or reinsurance under this title, the Administrator shall use to the maximum practicable extent the facilities and services of private organizations and persons authorized to engage in the insurance business under the laws of any State or district, Territory or possession of the United States (including insurance companies, agents, hrokers, and adjustment organizations); and the Administrator may arrange for payment of a reasonable compensation for such services.

SEC. 209. Any department or agency of the Federal Government engaged in making direct loans or advances, or in participating in, insuring or guaranteeing loans made by private lending institutions for construction, modernization, repair, rehabilitation, or purchase of property eligible for assistance under this title, may require as a condition for such future financial assistance that such property be insured against war damage to the extent such insurance is available.

SEC. 210. Upon disallowance of any claim against the Administrator under color of any insurance or reinsurance made available under this title, or upon refusal of the claimant to accept the amount allowed upon any such claim, the claimant may institute an action against the Administrator on such claim in the United States district court for any district in which a major portion (in terms of value) of the insured property is located, in the case of property claims, or in which the insured person resides, in the case of personal claims. Any such action must be begun within one year after the date upon which the Administrator mails to the claimant notice of disallowance of the claim or within one year after the date upon which the claimant mails to the Administrator notice of refusal to accept the amount allowed by the Administrator, as the case may be. For the purposes of this section, the Administrator may be sued and he shall appoint one or more agents within the jurisdiction of each United States district rourt upon whom service of process can be made in any action instituted under this section. Exclusive jurisdiction is hereby conferred upon all United States district courts to hear and determine such actions without regard to the amount in controversy.

SEC. 211. As used in this title

(a) The term “war damage" shall mean damage resulting from and the term "perils of war” shall mean perils resulting from (A) any hostile or warlike action by (i) any government or sovereign power (de jure or de facto) or any authority maintaining or using military, naval, or air forces, or (ii) an agent of any such government, power, or forces; or (B) any action taken by any Federal, State, or local government agency in hindering, combating, or defending against any such hostile or warlike action (whether actual, impending, or experted); or (C) disorder or other lawlessness accompanying the collapse of riril authority determined by the President to have resulted from any action referred to in clause (A) or (B) or from control by enemy forces.

(b) The term "hostile or warlike action" shall mean any attack or series of attacks by an enemy of the United States in any manner, including, but not limited to, attack by invasion, sabotage, or the use of bombs, shellfire, or nuclear, radiological, chemical, bacteriological, or other biological means, or other weapops or processes.

TITLE III-GENERAL PROVISIONS Sec. 301. (a) In carrying out his functions under this Act, the Administrator shall appoint an advisory committee of not less than three or not more than fifteen persons familiar with the problems of indemnity, insurance or reinsurance, to advise him with respect to the formulation of policies and the execution of functions under this Act.

(b) Persons who, while so serving, hold other remunerative employment with the United States shall receive no additional compensation for such service. Others so serving may receive compensation at not exceeding $50 per diem, plus necessary travel expenses.

Sec. 302. In the performance of, and with respect to, the functions, powers, and duties vested in him by this Act, the Administrator shall (in addition to any authority otherwise vested in him), have the functions, powers, and duties set forth in sections 401, 402, and 405 of the Federal Civil Defense Act of 1950 : Provided, however, That for the purposes of this Act, the Administrator may place not more than five positions in grades 16, 17, and 18 of the General Schedule established by the Classification Act of 1949, as amended, in addition to the number authorized by section 505 of the latter Act, and section 401 of the Federal Civil Defense Act of 1950; And provided further, That for the purposes of this Act, the Administrator may employ not more than five part-time or temporary personnel, in addition to the number authorized by section 401 of the Federal Civil Defense Act of 1950 and elsewhere in this title. Funds obtained or held by the Administrator in connection with the performance of his functions under this title shall be available for the administrative expenses of the Admiuistrator in connection with the performance of such functions.

Sec. 303. The Federal Civil Defense Act of 1950 is hereby amended as follows:

(a) By striking out the words “Civil Defense” and inserting in lieu thereof the word “Disaster” in section 2 and by adding the following as a new paragraph at the end of section 2:

"It is also the policy and intent of Congress to provide a plan of disaster relief for the protection of life and property in the United States from damage caused by natural disaster. While adequate responsibility for disaster relief should be placed in the several States and their political subdivisions, the Federal Government shall provide necessary coordination and guidance through the Federal Disaster Administration, being vested with ample powers to perform such services, and shall provide necessary assistance as hereinafter authorized.";

(b) By inserting the following new paragraph (c) at the end of paragraph (b) in section 3 and relettering the following paragraphs accordingly:

"(c) The term 'natural disaster' means any flood, tidal wave, hurricane, tornado, blizzard, duststorm, hailstorm or other severe storm, earthquake, explo sion, landslide, snowslide, severe freeze, drought, smog, radioactive contamination or other air pollution, or volcanic eruption.";

(c) By inserting the words "or disaster relief" after the term "civil defense" each time it appears in relettered paragraphs (d) and (e) of section 3;

(d) By striking out the words "Federal Civil Defense Administration and inserting in lieu thereof the words "Federal Disaster Administration" and by striking out the words "Federal Civil Defense Administrator" and inserting in lieu thereof the words "Federal Disaster Administrator" each time they appear in section 101 ;

(e) By striking out the words "Civil Defense Advisory Council" and inserting in lieu thereof the words “Disaster Advisory Council" and by inserting the words "and disaster relief" after the words “civil defense" in section 102;

(f) By inserting the words “and disaster relief" after the words "civil defense" each time they appear in section 201, by inserting the words “or imminent natural disasters” after the word "attacks” in subsection (c) of section 201, and by inserting the words “or a natural disaster" after the word "attack" each time it appears in subsection (g) of section 201;

(g) By inserting the words "and disaster relief" after the words "civil defense" in section 203 ;

(h) By iuserting the words “or disaster relief" after the words "civil defense" in section 204;

(i) By repealing section 304; and
(j) By amending the short title of the Act to read “Federal Disaster Act."

SEC. 304. Chapter XI of the Act of June 2, 1951 (65 Stat. 61) is hereby amended by striking out “$5,000,000" and inserting in lieu thereof “$6,000,000", and by inserting the words “and disaster relief" after the words "Civil defense".

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