or by any person acting under authority delegated to him consonan with law, shall be entitled to challenge the validity thereof or other wise excuse his action or failure to act on the grounds that pursuan to the provisions of this order such action was within the jurisdiction of the Commission rather than the Administrator, or vice versa.

SEC. 9. Executive Order No. 10657 of February 14, 1956, as amended is hereby further amended by adding at the end thereof a new Sectio 8, reading as follows:

"SEC. 8. Nothing in this order shall be applicable to the community of Los Alamos, New Mexico."

THE WHITE HOUSE, April 18, 1963.

JOHN F. KENNEDY.

§ 1

PROPERTY AND CRIME INSURANCE

XCERPT FROM NATIONAL INSURANCE DEVELOPMENT ACT OF 1975

[Public Law 94-13, 89 Stat. 68, 12 U.S.C. 1749bbb note]

AN ACT To continue the national insurance development program

Be it enacted by the Senate and House of Representatives of the nited States of America in Congress assembled, That this Act may be ited as the "National Insurance Development Act of 1975".

SECTION 1. (a) The Congress finds that (1) under the Housing and Urban Development Act of 1968 (Public Law 90-448, approved August 1, 1968), as amended, the powers of the Secretary of the Department of Housing and Urban Development to enter into new einsurance contracts with respect to the Federal riot reinsurance proram and into new direct insurance contracts with respect to the Fedral crime insurance program will terminate on April 30, 1975, except o the extent necessary (a) to continue policies of direct insurance and einsurance, until April 30, 1978, (b) to handle claims and those arisng under the policies still in force on the termination date of the program, and (c) to complete the liquidation and termination of the einsurance and direct insurance programs; (2) continuation of the Federal riot reinsurance program is essential both to the operation of he system of State FAIR plans, which provide access for many people to basic property insurance not otherwise available in urban areas, ind to the continued existence of such FAIR plans inasmuch as many State laws condition the very existence of such FAIR plans upon the continued existence of the Federal riot reinsurance program; (3) continuation of the Federal crime insurance program, which provides access for many homeowners, tenants, and small businessmen to burglary, robbery, and similar coverages in States where an insurance Coverage availability problem exists, is likewise essential; (4) withdrawal at this time of the Federal support which these programs give o the insurance buying public and the insurers would be particularly ll timed and inadvisable in view of the (a) threatening major shortge of voluntary insurance facilities to which the consumer can turn o fulfill his insurance purchase needs and (b) the potential for insurer insolvencies inherent in times of economic stress; and (5) the impending tightening of the availability of insurance coverage in the insurince market will only intensify due to the present economic conditions confronting insurers, which affect the capital adequacies of insurers due to severe declines in the values of insurers' securities portfolios, thus impacting on their ability to increase their underwritings in a growing insurance market.

(b) The purpose of this Act, therefore, is to extend the duration of the national insurance development program so as to maintain the Federal riot reinsurance program which reinsures the general property insurance business against the catastrophic peril of riot and, thus,

makes this insurance available, together with its review and comp ance function which assures that the intent of the Housing and Urban Development Act of 1968 (Public Law 90-448, approved August 1. 1968) as amended is carried out, as well as the Federal crime insurance program which provides basic crime insurance coverages in the States where it is needed, both of which programs aid the insurance purchas ing consumer when, from time to time and especially in times such as these, insurers engage in conscious policies of market constriction which lead to serious inner-city insurance availability problems of the kind the national insurance development program has been created to ameliorate.

Approved April 8, 1975.

EXCERPTS FROM THE HOUSING AND URBAN DEVELOPMENT
ACT OF 1968

[Public Law 90-448, 82 Stat. 476; 12 U.S.C. 1749bbb, 42 U.S.C. 4011]

TITLE XI-URBAN PROPERTY PROTECTION AND REINSURANCE

SHORT TITLE

SEC. 1101. This title may be cited as the "Urban Property Protection and Reinsurance Act of 1968."

FINDINGS AND DECLARATION OF PURPOSE

SEC. 1102. (a) The Congress finds that (1) the vitality of many American cities is being threatened by the deterioration of their inner city areas; responsible owners of well-maintained residential, business and other properties in many of these areas are unable to obtain ade quate property insurance coverage against fire, crime, and other perils: the lack of such insurance coverage accelerates the deterioration of these areas by discouraging private investment and restricting the availability of credit to repair and improve property therein; and this deterioration poses a serious threat to the national economy; (2) recent riots and other civil commotion in many American cities have brought about abnormally high losses to the private property insurance indus try for which adequate reinsurance cannot be obtained at reasonable cost, and the risk of such losses will make most lines of property insurance even more difficult to obtain; (3) the capacity of the private property insurance industry to provide adequate insurance is threatened, and the continuity of such property insurance protection is essential to the extension of credit in these areas; and (4) the national interest demands urgent action by the Congress to assure that essential lines of property insurance, including lines providing protection against riot and civil commotion damage will be available to property owners at reasonable cost.

and

(b) The purposes of this title are, therefore, to (1) encourage assist the various State insurance authorities and the property insur

nce industry to develop and carry out statewide programs which will ake necessary property insurance coverage against the fire, crime, and ther perils more readily available for residential, business, and other roperties meeting reasonable underwriting standards; (2) provide Federal program of reinsurance against abnormally high property nsurance losses resulting from riots and other civil commotion, placng appropriate financial responsibility upon the States to share in uch losses; and (3)1 provide direct insurance through the facilities of me Federal Government in the case of properties for which statewide rograms and the Federal reinsurance program either do not make rime insurance available or offer such insurance to property owners nly at prohibitive cost.

AMENDMENT OF THE NATIONAL HOUSING ACT

SEC. 1103. The National Housing Act is amended by adding at the nd thereof the following new title:

TITLE XII 2-NATIONAL INSURANCE DEVELOPMENT

PROGRAM

PROGRAM AUTHORITY

SEC. 1201. (a) The Secretary is authorized to establish and carry Out the programs provided for in parts A, B, C, and D of this title. (b) (1) The powers of the Secretary under this title shall terminate on September 30, 1980 3 except to the extent necessary—

1 Sec. 601. Housing and Urban Development Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1788, inserted clause (3).

Sec. 1103, Housing and Urban Development Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat. 476, 556, added Title XII. Sec. 602(a), Housing and Urban Develpment Act of 1970, Public Law 91-609, approved December 31, 1970, 84 Stat. 1770, 1788, mended section 1201 of title XII to provide new program authority for the direct crime nsurance program, and to extend title XII from April 30, 1973, to April 30, 1975, except to the extent necessary to continue reinsurance and direct crime insurance from April 30, 1976, to April 30, 1978. Sec. 602 (a), Housing and Urban Development Act of 1970, supra, also extended from April 30, 1976, to April 30, 1978, or as soon thereafter as possible, the date for the Secretary to submit to the Congress for its approval a plan for the liquidation and termination of the reinsurance and direct insurance programs. Sec. 1102 of the 1968 Act made the following findings and declaration of purpose with respect to Title XII: SEC. 1102. (a) The Congress finds that (1) the vitality of many American cities is being threatened by the deterioration of their inner city areas; responsible owners of well-maintained residential, business, and other properties in many of these areas are unable to obtain adequate property Insurance coverage against fire, crime, and other perils; the lack of such Insurance coverage accelerates the deterioration of these areas by discouraging private investment and restricting the availability of credit to repair and improve property therein; and this deterioration posses a serious threat to the national economy; (2) recent riots and other civil commotion in many American cities have brought about abnormally high losses to the private property insurance industry for which adequate reinsurance cannot be obtained at reasonable cost, and the risk of such losses will make most lines of property insurance even more difficult to obtain; (3) the capacity of the private property Insurance industry to provide adequate insurance is threatened, and the continuity of such property insurance protection is essential to the extension of credit in these areas; and (4) the national interest demands urgent action by the Congress to assure that essential lines of property insurance, including lines providing protection against riot and civil commotion damage will be available to property owners at reasonable cost.

(b) The purposes of this title are, therefore, to (1) encourage and assist the various State Insurance authorities and the property insurance industry to develop and carry out statewide programs which will make necessary property insurance coverage against the fire, crime, and other perils more readily available for residential, business, and other properties meeting reasonable underwriting standards; and (2) provide a Federal program of re Insurance against abnormally high property insurance losses resulting from riots and other civil commotion, placing appropriate financial responsibility upon the States to share

in such losses.

Sec. 2 of Public Law 94-13, 89 Stat. 68, approved April 8, 1974, substituted "April 30, 1977" for "April 30, 1975".

Amended by the Supplemental Housing Authorization Act of 1977, Public Law 95-24. approved October 12, 1977, by inserting "September 30, 1978" in lieu of "April 30, 1977". Extended through September 30, 1980 by Sec. 307(a). Housing and Community Development Amendments of 1978, Public Law 95-557, 92 Stat. 2080, approved October 31, 1978.

(A) to continue reinsurance and direct insurance in accordance with the provisions of sections 1223(b) and 1231 (c) until September 30, 1983; 1

1

(B) to process, verify, and pay claims for reinsured losses and directly insured losses and perform other necessary functions in connection therewith; and

(C) to complete the liquidation and termination of the reinsurance and direct insurance programs.

(2) On September 30, 1981,2 or as soon thereafter as possible, the Secretary shall submit to the Congress, for its approval, a plan for the liquidation and termination of the reinsurance and direct insurance programs.

ADVISORY BOARD; MEETINGS, DUTIES, COMPENSATION, AND EXPENSES

SEC. 1202. (a) (1) There is established an Advisory Board (hereinafter called the "Board") consisting of nineteen members appointed by the Secretary. Members of the Board shall be selected from among representatives of the general public, the insurance industry, State and local governments including State insurance authorities, and the Federal Government. Of these members of the Board, not more than six shall be regular full-time employees of the Federal Government. and not less than four shall be representatives of the private insurance industry and not less than four shall be representatives of State insurance authorities.

(2) The Secretary shall designate a Chairman and a Vice Chairman of the Board.

(3) Each member shall serve for a term of two years, or until his successor has been appointed, except that no person who is appointed while a full-time employee of a State or the Federal Government shall serve in such position after he ceases to be so employed, unless he is reappointed.

(4) Any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of that term.

(b) The Chairman shall preside at all meetings, and the Vice Chairman shall preside in the absence or disability of the Chairman. In the absence of both the Chairman and Vice Chairman, the Secretary may appoint any member to act as Chairman pro tempore. The Board shall meet at such times and places as it or the Secretary may fix and determine, but shall hold at least four regularly scheduled meetings a year. Special meetings may be held at the call of the Chairman or any three members of the Board, or at the call of the Secretary. (c) The Board shall review general policies and shall advise the Secretary with respect thereto, and perform such other functions as are specified in this title.

(d) The members of the Board shall not, by reason of such membership, be deemed to be employees of the United States, and such members, except those who are regular full-time employees of the

1 Amended by section 104 (a) (2) of the Supplemental Housing Authorization Act of 1977, Public Law 95-24. approved April 30, 1977, by deleting "April 30, 1978" and in serting in lieu thereof "September 30, 1981". Extended through September 30, 1983 by Sec. 307(a), Housing and Community Development Amendments of 1978, Public Law 95-557, 92 Stat. 2080, approved October 31, 1978.

2 Amended by section 104 (a)(3) of the Supplemental Housing Authorization Act of 1977. Public Law 95-24, approved April 30, 1977, by deleting "April 30, 1977" and inserting in lieu thereof "September 30, 1978". Extended through September 30, 1981 by Sec. 307(a). Housing and Community Development Amendments of 1978, Public Lev 95-557, 92 Stat. 2080, approved October 31, 1978.