; or (B) is otherwise exempt from Federal income taxation. (4) Earnings The State program may not provide for any distribution of any part of any net profits of the State program to any insurer that participates in the State program. (5) Prevention and mitigation (A) Mitigation of losses The State program shall include provisions designed to encourage and support programs to mitigate losses from natural catastrophes for which the State insurance or reinsurance program was established to provide insurance coverage. (B) Operational requirements The State program shall operate in a State that— (i) requires that an appropriate public body within the State shall have adopted adequate mitigation measures with effective enforcement provisions which the Secretary finds are consistent with the criteria for construction described in the International Code Council building codes; (ii) has taken actions to establish an insurance rate structure that takes into account measures to mitigate insured losses; and (iii) ensures, to the extent that reinsurance coverage made available under the eligible State program results in any cost savings in providing insurance coverage for risks in such State, such cost savings are reflected in premium rates charged to consumers for such coverage. (6) Requirements regarding coverage The State program— (A) may not, except for charges or assessments related to post-event financing or bonding, involve cross-subsidization between any separate property and casualty insurance lines covered under the State program pursuant to paragraph (1); (B) shall be subject to a requirement under State law that for any insurance coverage made available under the State insurance program or for any reinsurance coverage for such insurance coverage made available under the State reinsurance program, the premium rates charged shall cover the expected value of all future costs associated with insurance policies or reinsurance contracts written by such program, in accordance with the principles under section 303(g)