amendment of the national housing act

amendment of the national housing act Sec. 1103. The National Housing Act is amended by adding at the end thereof the following new title: “TITLE XII—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, U, and 0 of this title. “(b) (1) The powers of the Secretary under this title shall terminate on April 30, 1973, except to the extent necessary— “(A) to continue reinsurance in accordance with the provisions of section 1223(b) until April 30, 1976; “(B) to process, verify, and pay claims for reinsured losses and perform other necessary functions in connection therewith; and “(C) to complete the liquidation and termination of the reinsurance program. “(2) On April 30, 1976, 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 program. “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. 82 Stat. 557 “(b) The Chairman shall preside at all meetings, mid 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, lie deemed to be employees of the United States, and such members, except those who are regular full-time employees of the Government, shall receive for their services, as members, the per diem equivalent to the rate for grade GS-18 of the General Schedule under section 5332 of title 5, United States Code, when engaged in the performance of their duties, and each member of the Board shall be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of such title for persons in the Government service employed intermittently. “definitions “Sec. 1203. (a) When used in this title, unless the context otherwise requires, the term— “(1) ‘environmental hazard’ means any hazardous condition that might give rise to loss under an insurance contract, but which is beyond the control of the property owner; “(2) ‘essential property insurance’ means insurance against direct loss to property as defined and limited in standard fire policies and extended coverage endorsement thereon, as approved by the State insurance authority, and insurance for such types, classes, and locations of property against the perils of vandalism, malicious mischief, burglary, or theft, as the Secretary by rule shall designate. Such insurance shall not. include automobile insurance and shall not include insurance on such types of manufacturing risks as may be excluded by the State insurance authority; “(3) ‘inspection facility’, with respect to any State, means any rating bureau or other person designated by the State insurance authority to perform inspections under fair access to insurance requirements plans under part A; “(4) ‘insurer’ includes any insurance company or group of companies under common ownership which is authorized to engage in the insurance business under the laws of any State; “(5) ‘pool’ means any pool or association of insurance companies in any State which is formed, associated, or otherwise created for the purpose of making property insurance more readily available; “(6) ‘losses resulting from riots or civil disorders’ means losses resulting from riots or civil disorders under policies for standard lines of property insurance for which reinsurance is offered under section 1221, as determined under regulations of the Secretary; “(7) ‘property owner’, with respect to any real, personal, or mixed real and personal property, means any person having an insurable interest, in such property; “(8) ‘person’ includes any individual or group of individuals, corporation, partnership, or association, or any other organized group of persons; 82 Stat. 558 “(9) ‘reinsured losses’ means losses on reinsurance claims and all direct expenses incurred in connection therewith including, but not limited to, expenses for processing, verifying, and paying such losses; “(10) ‘standard line of property insurance’ includes— “(A) fire and ext ended coverage; “(B) vandalism and malicious mischief; “(C) other allied lines of fire insurance; “(D) burglary and theft; “(E) those portions of multiple peril policies covering perils similar to those provided for in subparagraphs (A), (B), (C), and (D); “(F) inland marine; “(G) glass; “(H) boiler an d machinery; “(I) ocean marine: “(J) aircraft physical damage; and “(K) such other lines generally offered to the public which include protection against damage from riot or civil commotion as the Secretary by regulation may designate; “(11) ‘State’ means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions, and the Trust Territory of the Pacific Islands; “(12) ‘urban area’ includes any municipality or other political subdivision of a State, subject to population or other limitations defined in rules and regulations of the Secretary and such additional areas as may be designated by the State insurance authority; and “(13) ‘year’ means a calendar year, fiscal year of a company, or such other period of twelve months as may be designated by the Secretary. “(b) The Secretary is authorized to define, by rules and regulations, any technical or trade term, insofar as such definition is not inconsistent with the provisions of this title. “Part A—Statewide Plans To Assure Fair Access to Insurance Requirements “fair plans “Sec. 1211. (a) Each insurer reinsured under this title shall cooperate with the State insurance authority in each State in which it is to acquire such reinsurance in establishing and carrying out statewide plans to assure fair access to insurance requirements (FAIR plans). “(b) Such plans must be approved by, and administered under the supervision of, the State insurance authority, or be authorized or required by State law, and shall be designed to make essential property insurance more readily available in, but not necessarily limited to, urban areas. Such plans may vary in detail from State to State because of local conditions, but all plans shall contain provisions that— “(1) no risk shall be written at stir charged rates or be denied insurance coverage for essential property insurance unless there has first been an inspection of the risk, without cost to the owner, by an inspection facility and a determination by the insurer, based on information in the inspection report and other sources, that the risk does not meet reasonable underwriting standards at the applicable premium rate; “(2) inspections under the plan may be requested by the property owner or his representative, the insurer, or the insurance 82 Stat. 559agent, broker or other producer, and such requests need not be made in writing; “(3) the absence of a bu i 1 ding owner or his representative during an inspection shall not preclude a tenant seeking insurance from obtaining an inspection under the plan; “(4) following the inspection, a copy of the inspection report, shall be promptly sent by the inspection facility to the insurer or insurers, or to an all-industry placement facility referred to under section 1212, as may be designated by the person requesting the inspection; “(5) after the inspection report is received by an insurer, it shall promptly determine if the risk meets reasonable underwriting standards at the applicable premium rate, and shall promptly return to the inspection facility the inspection report and provide an action report, setting forth— “(A) (i) the amount of coverage it agrees to write; and if the insurer agrees to write the coverage with a surcharge (if such a surcharge is authorized by the State insurance authority), the improvements necessary before it will provide coverage at an unsurcharged premium rate; and “(ii) the amount of coverage it agrees to write if certain improvements specified in the action report are made; or “(B) the specific reasons it declines to write coverage; “(6) if the insurer declines the risk, or agrees to write the coverage sought on condition that the property will be improved, it shall also promptly send a copy of both the inspection and action reports to the property owner and the State insurance authority, and at the time the insurer sends such reports to the property owner, it shall also explain his right, under applicable State laws, to appeal the decision of the insurer to the State insurance authority. setting forth the procedures to be followed for such appeal; “(7) all policies written pursuant to the plan shall be promptly written after inspection or reinspection and shall be separately coded so that appropriate records may be compiled for purposes of performing loss prevention and other studies of the operation of the plan; “(8) the inspection facility shall submit to the State insurance authority and to the Secretary periodic reports setting forth information, by individual insurers, including the number of risks inspected under the plan, the number of risks accepted, the number of risks conditionally accepted and reinspections made, the number of risks declined, and such other information as the State insurance authority may request; “(9) notice will be given to any policyholder a reasonable time prior to the cancellation or nonrenewal of any risk eligible under the plan (except in ease of nonpayment of premium or evidence of incendiarism), to allow ample time for an application for new coverage to be made and a new policy to be written under the plan, and the insurer shall, in writing, explain to the policyholder the procedures for obtaining an inspection under the plan in the notice of cancellation or non renewal; and “(10) a continuing public education program will be undertaken by the participating insurers, agents, and brokers to assure that the plan receives adequate public attention. 82 Stat. 560 “all-industry placement facility “Sec. 1212. Any plan under this part shall include an all-industry placement facility doing business with every insurer participating in the plan in the State, and shall provide that this facility shall perform certain functions including, but not limited to, the following: “(1) seeking, upon request by or on behalf of any property owner requesting an inspection under the plan, to distribute the risks involved equitably among the insurers with which it is doing business; and “(2) seeking to place insurance up to the full insurable value of the risk to be insured with one or more insurers with which it is doing business, except to the extent that deductibles, percentage participation clauses, and other underwriting devices are employed to meet special problems of insurability. “industry cooperation “Sec. 1213. (a) Each insurer seeking reinsurance under this title shall file a statement with the State insurance authority in each State in which it is participating in a plan under this part, pledging its full participation and cooperation in carrying out the plan, and shall file a copy of such statement with the Secretary. “(b) No insurer acquiring reinsurance under this title shall direct any agent or broker or other producer not to solicit business through such a plan, nor shall any agent, broker, or other producer be penalized by such insurer in any way for submitting applications for insurance to an insurer under the plan. “plan evaluation “Sec. 1214. (a) In accordance with such rules and regulations as the Secretary may prescribe, each Slate insurance authority shall— “(1) transmit to the Secretary any proposed or adopted plan, or amendments thereto; and “(2) advise the Secretary, from time to time, concerning the operation of the plan, its effectiveness in providing essential property insurance, and the need to form a pool of insurers or adopt other programs to make essential property insurance more readily available in urban areas of the State. “(b) The Secretary may, after full consultation with the Board, by rules and regulations, modify the plan criteria set forth under this part, if he finds, on the basis of experience, that such action is necessary or desirable to carry out the purposes of this title. The Secretary may also, with respect to any State, waive compliance with one or more of the plan criteria, upon certification by the State insurance authority that compliance is unnecessary or inadvisable under local conditions or State law. “Part B—Reinsurance Coverage “reinsurance of losses from riots or civil disorders “Sec. 1221. (a) (1) The Secretary is authorized to offer to any insurer or pool, subject to the conditions set forth in section 1223, reinsurance against property losses resulting from riots or civil disorders in any one or more States. “(2) Reinsurance shall be offered to any such insurer or pool only on all standard lines of property insurance enumerated under subparagraphs (A) through (E) of section 1203(a) (10) together, and any insurer or pool purchasing such reinsurance shall also be eligible, 82 Stat. 561to purchase reinsurance on any one or more standard lines of property insurance enumerated under subparagraphs (F) through (.1) of section 1203(a) (10) or which may be designated by regulation pursuant to subparagraph (K) of that section. “(b) Reinsurance coverage under this section may be provided immediately following the enactment of this title to any insurer or pool in any State on a temporary basis, and on such terms and conditions as may lie agreed upon, and coverage under such terms and conditions may be bound with respect to any such insurer or pool by means of a written binder which shall remain in force not more than ninety days and shall expire at the earlier of either— “(1) the termination of such ninety-day period, or “(2) the effective date of any governing contract, agreement, treaty, or other arrangement entered into between the insurer or pool and the Secretary under section 1222 for the purpose of providing reinsurance coverage against losses resulting from riots or civil disorders. “(c) No reinsurance shall be offered to any insurer or pool in a State after the expiration of the written binder entered into under subsection (b), unless there is in effect in such State a plan as set forth under part A and the insurer or poo] is participating in such plan, and unless, m the case of an insurer in a State where a pool has been established pursuant to State law, the insurer is participating in such a pool. “reinsurance agreements and premiums “Sec. 1222. (a) During the first year following the date of the enactment of this title, the Secretary is authorized to enter into any contract, agreement, treaty, or other arrangement with any insurer or pool for reinsurance coverage, in consideration of payment of such premiums, fees, or other charges by insurers or pools which the Secretary, after full consultation with the Board, deems to be adequate to obtain aggregate reinsurance premiums for deposit in the National Insurance Development Fund established under section 1233 in excess of the estimated amount of insured riot losses during the calendar year 1967, on the assumption that a substantial proportion of the property insurance written will be reinsured under this title, and thereafter the Secretary may increase or decrease such premiums for reinsurance if it. is found after full consultation with the Board and the National Association of Insurance Commissioners that such action is necessary or appropriate to carry out the purposes of this t itle. “(b) Reinsurance offered under this title shall reimburse an insurer or pool for its total proved and approved claims for covered losses resulting from riots or civil disorders during the term of the reinsurance contract, agreement, treaty, or other arrangement, over and above the amount of the insurer’s or pool’s retention of such losses as provided in such reinsurance contract, agreement, treaty, or other arrangement entered into under this section. “(c) Such contracts, agreements, treaties, or other arrangements may be made without regard to section 3679(a) of the Revised Statutes of the United States (31 U.S.C. 665(a)), and shall include any terms and conditions which the Secretary deems necessary to carry out the purposes of this title. The premium rates, terms, and conditions of such contracts with insurers or pools, throughout the country, in any one year shall be uniform. “(d) Any contract, agreement, treaty, or other arrangement for reinsurance under this section shall be for a term expiring on April 30, 1969, and on April 30 each year thereafter, and shall be entered into within ninety days after the date of the enactment of this title, or within ninety days prior to April 30 each year thereafter, or within ninety 82 Stat. 562days after an insurer is authorized to write insurance eligible for reinsurance in a State which it was not authorized to write in the preceding year. “Conditions of reinsurance “Sec. 1223. (a) Subject to the provisions of subsection (b), reinsurance shall not be offered by the Secretary in a State or be applicable to insurance policies written in that State by an insurer— “(1) after one year following the date of the enactment of this title, or, if the appropriate State legislative body has not met in regular session during that year, by the close of its next regular session, in any State which has not adopted appropriate legislation, retroactive to the date of the enactment of tins title, under which the State, its political subdivisions, or a governmental corporation or fund established pursuant to State law, will reimburse the Secretary, in an amount up to 5 per centum of the aggregate property insurance premiums earned in that State during the preceding calendar year on those lines of insurance reinsured by the Secretary in that State during the current year, such that the Secretary may be reimbursed for amounts paid by him in respect to reinsured losses that occurred in that State during a calendar year in excess of (A) reinsurance premiums received in that State during the same calendar year plus (B) the excess of (i) the total premiums received by the Secretary for reinsurance in that State during a preceding period measured from the end of the most recent calendar year with respect to which the Secretary was reimbursed for losses under this title over (ii) any amounts paid by the Secretary for reinsured losses that occurred during this same period; “(2) after thirty days fol lowing notification to the insurer that the Secretary find’s (after consultation with the State insurance authority) that there has not been adopted by the State, or the property insurance industry in that State, a suitable program or programs, in addition to plans under part A, to make essential property insurance available without regard to environmental hazards, and that such action is necessary to carry out the purposes of this title; except that this paragraph shall not become effective until two years after the date of the enactment of this title, or at such earlier date as the Secretary, after consultation with the State insurance authority, may determine; “(3) after thirty days following notification to the insurer that the Secretary, or the State insurance authority, finds that such insurer is not f idly part icipating— “(A) in the plan in the State; “(B) where it exists, in a pool: and “(C) where it exists, in any other program found by the Secretary to aid in making essential property insurance more readily available in the State: Provided, That, the Secretary shall not make any such finding with respect to any insurer unless (i) prior to making such finding the Secretary has requested and considered (he views of the State insurance authority as to whether such finding should be made, or (ii) the Secretary has made such a request in writing to the State insurance authority and such authority has failed to respond thereto within a reasonable period of time after receiving such request; “(4) following a merger, acquisition, consolidation or reorganization involving one or more insurers having lines of property insurance in the State reinsured under this title and one or more 82 Stat. 563insurers with or without such reinsurance, unless the surviving company— “(A) meets the criteria of eligibility for reinsurance, other than as provided under section 1222(d); and “(B) within ten days pays any reinsurance premiums due: or “(5) upon receipt of notice from the insurer or pool that it desires to cancel its reinsurance agreement with the Secretary in the State. “(b) Notwithstanding the foregoing provisions of this section, reinsurance may he continued for the term of the policies written prior to the date of termination or non renewal of reinsurance under this section, for as long as the insurer pays reinsurance premiums annually in such amounts as tire determined under section 1222, based on the annual premiums earned on such reinsured policies, and for the purpose. of this subsection, the renewal, extension, modification, or other change in a policy, for which any additional premium is charged, shall be deemed to be a policy written on the date such change was made. “recovery of premiums; statute of limitations “Sec. 1224. (a) The Secretary, in a suit brought in the appropriate United States district court, shall be entitled to recover from any insurer the amount of any unpaid premiums lawfully payable by such insurer to the Secretary. “(b) No action or proceeding shall be brought for the recovery of any premium due to the Secretary for reinsurance, or for the recovery of any premium paid to the Secretary in excess of the amount due to him, unless such action or proceeding shall have been brought within five years after the right accrued for which the claim is made, except that, where the insurer has made or filed with the Secretary a false or fraudulent annual statement, or other document with the intent to evade, in whole or in part, the payment of premiums, the claim shall not be deemed to have accrued until its discovery by the Secretary. “Part C—Provisions of General Applicability “claims and judicial review “Sec. 1231. (a) All reinsurance claims for losses under this title shall be. submitted by insurers in accordance with such terms and conditions as may be established by the Secretary. “(b) (1) Upon disallowance of any claim under color of 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 Secretary on such claim in the United States district court for the district in which a major portion (in terms of value) of the claim arose. “(2) Any such action must be begun within one year after the date upon which the claimant received written notice of disallowance or partial disallowance of the claim, and exclusive jurisdiction is hereby conferred upon United States district courts to hear and determine such actions without regard to the amount in controversy. “fiscal intermediaries and servicing agents “Sec. 1232. (a) In order to provide for maximum efficiency in the administration of the reinsurance program under this title, and in order to facilitate the expeditious payment of any funds under such program, the Secretary may enter into contracts with any insurer, pool, 82 Stat. 564or other person, for the purpose of providing for the performance of any or all of the following functions: “(1) estimating or determining any amounts of payments for reinsurance claims; “(2) receiving and disbursing and accounting for funds in making payments for reinsurance claims; “(3) auditing the records of any insurer, pool, or other person to the extent necessary to assure that proper payments are made; “(4) establishing the basis of liability for reinsurance payments, including the total amount of proved and approved claims which may be payable to any insurer, and the total amount of premiums earned by any insurer in the respective States for re-insured lines of property insurance; and “(5) otherwise assisting in any manner provided in the contract to further the purposes of this title. “(b) (1) Any such contract may require the insurer, pool, or other {person, or any of its officers or employees certifying payments or disbursing funds pursuant to the contract, or otherwise participating in carrying out the contract, to give surety bond to the United States in such amounts as the Secretary may deem appropriate. “(2) In the absence of gross negligence or intent to defraud the United States— “(A) no individual designated pursuant to a contract under this section to certify payments shall be liable with respect to any payment certified by him under this section; and “(B) no officer of the United States disbursing funds shall be liable with respect to any otherwise proper payment by him if it was based on a voucher signed by an individual designated pursuant to a contract under this section to certify payments. “national insurance development fund “Sec. 1233. (a) To curry out the programs authorized under this title, the Secretary is authorized to establish a National Insurance Development Fund (hereinafter called the ‘fund’) which shall be available, without fiscal year limitations— “(1) to make such payments as may, from time to time, be required under reinsurance contracts under this title; “(2) to pay such administrative expenses as may be necessary or appropriate to carry out the purposes of this title; and “(3) to repay to the Secretary of the Treasury such sums, including interest thereon, as may be borrowed front him for purposes of such programs under section 520(b), “(b) The fund shall lie credited with— “(1) reinsurance premiums, fees, and other charges which may be paid or collected in connection with reinsurance provided under part B; “(2) interest which may be earned on investments of the fund; “(3) such amounts as may be advanced to the fund from appropriations in order to maintain the fund in an operative condition adequate to meet its liabilities; “(4) receipts from any other source which may, from time to time, be credited to the fund; and “(5) funds borrowed by the Secretary under section 520(b) and deposited in the fund. “(c) If, after any amounts which may have been advanced to the fund from appropriations have been credited to the appropriation from which advanced (including interest thereon at the rate prescribed under section 520(b)), the Secretary determines that the moneys of the fund are in excess of current needs, he may request the investment of such amounts as he deems advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States. 82 Stat. 565 “(d) An annual business-type budget for the fund shall lie prepared, transmit led to the Congress, considered, and enacted in the manner prescribed by law (sections 102, 103, and 104 of the Government Corporation Control Act (31 U.S.C. 847–849 )) for wholly-owned Government corporations. “records, annual statement, and audits “Sec. 1234. (a) Any insurer or pool acquiring reinsurance under this title shall furnish the Secretary with such summaries and analyses of information in its records as may be necessary to carry out the purposes of this title, in such form as the Secretary, in cooperation with the State insurance authority, shall, by rules and regulations, prescribe. The Secretary shall make use of State insurance authority examination reports and facilities to the maximum extent feasible. “(b) Any insurer or pool acquiring reinsurance under this title shall file with the Secretary a true and correct copy of any annual statement, or amendment thereof, filed with the State insurant authority of its domiciliary State, at the time it files such statement or amendment with such State insurance authority. “(c) Any insurer or other person executing any contract, agreement, or other appropriate arrangement with the Secretary under section 1222 or section 1232 shall keep reasonable records winch fully disclose the total costs of the programs undertaken or the services being rendered, and such other records as will facilitate an effective audit of liability for reinsurance payments by the Secretary. “(d) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of investigation, audit, and examination to any books, documents, papers, and records of any insurer or other person that are pertinent to the costs of any program undertaken for, or services rendered to, the Secretary. Such audits shall be conducted to the maximum extent, feasible in cooperation with the State insurance authorities and through the use of their examining facilities. “study of reinsurance and other programs “Sec. 1235. (a) The Secretary is authorized and directed to conduct a study of reinsurance and other means to help assure— “(1) an adequate market for burglary and theft and other property insurance in urban areas; and “(2) adequate availability of surety bonds for construction contractors in urban areas. “(b) The Secretary shall submit the results of this study, together with appropriate recommendations, to the President and Congress no later than one year following the date of the enactment of this title. “other studies “Sec. 1236. (a) The Secretary is authorized to undertake such studies as may be necessary to carry out the purposes of this title including, but not limited to, inquiries concerning— “(1) the operation of plans under part A; “(2) the extent, to which essential property insurance is unavailable in urban areas; “(3) the market for private reinsurance; and “(4) loss prevention methods and procedures, insurance marketing methods, and underwriting techniques. “(b) To such extent and under such circumstances as may be practicable and feasible, the Secretary shall conduct any study authorized 82 Stat. 566under this section in cooperation with State insurance authorities and the private insurance industry. “general powers “Sec. 1237. In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Secretary shall (in addition to any authority otherwise vested in him) have the functions, powers, and duties (including the authority to issue rules and regulations) set forth in section 402, except subsections (c) (2), (d), and (f), of the Housing Act of 1950. Any rules or regulations of the Secretary shall only be issued after full consultation with the Board and after notice and hearing, if granted, as required by the Administrative Procedure Act. “services and facilities of other agencies—utilization of personnel, services, facilities, and information “Sec. 1238. The Secretary may, with the consent of the agency concerned, accept and utilize, on a reimbursable basis, the officers, employees, services, facilities, and information of any agency of the Federal Government, except that any such agency having custody of any data relating to any of the matters within the jurisdiction of the Secretary shall, to the extent permitted by law, upon request of the Secretary, make such data available to the Secretary. “advcance payment’s “Sec. 1239. Any payments which are made under the authority of this title may be made, after necessary adjustments on account of previously made underpayments or overpayments in advance or by way of reimbursement. Payments may be made in such installments and on such conditions as the Secretary may determine. “taxation “Sec. 1240. (a) The National Insurance Development Fund, including its reserves, surplus, and income, shall be exempt from all taxation now or hereafter imposed by the United States, or by any State, or any subdivision thereof, except that any real property acquired by the Secretary as a result of reinsurance shall be subject to taxation by any State or political subdivision thereof, to the same extent, according to its value, as other real property is taxed. “(b) Any measures undertaken by any State to meet or to fund its obligations under section 1223(a) (1) shall not be the subject of any retaliatory or fiscal imposition by any other State. “appropriations “Sec. 1241. There are hereby authorized to be appropriated such sums as may be necessary to carry out this title.”