; and (E) to provide appropriate treatment under the program for any insurer that is a State residual market insurance entity. (6) Treatment of existing policies This Act may not be construed to affect any policy for covered insurance in force on the date of the commencement of participation in the Program by the State in which the dwelling covered by such insurance is located, but the Program shall apply to policies renewed after such date. (b) Federal payments for excessive insured losses (1) Federal payment Pursuant to the occurrence of a covered event, the Secretary shall pay to each participating State an amount equal to the amount by which the aggregate industry-wide insured losses within such participating State resulting from such covered event exceed the trigger amount in effect at such time under paragraph (2) for such participating State for the type of covered event that occurred. The Secretary shall provide for payments under this subsection for a participating State for a covered event to be made in installments of approximately 25 percent of the estimated total amount to be provided for such State in connection with such disaster, as best determined by the Secretary after consideration of the information regarding insured losses provided to the Secretary pursuant to paragraph (2)(D). (2) State trigger amounts (A) NAS authority The Secretary shall enter into an agreement with the National Academy of Sciences (in this paragraph referred to as the Academy ) under which the Academy shall propose to the Secretary, for each participating State and for each different type of covered event, a trigger amount under this paragraph. A trigger amount proposed for a State shall be effective for purposes of the Program only upon review, adjustment if necessary, and approval by the Secretary. (B) Considerations The trigger amount proposed by the Academy for a participating State for a type of covered event shall be the lesser of— (i) the total direct written premiums for covered insurance in the participating