In the nature of a substitute.

This amendment's own text couldn't be picked out of its Congressional Record passage, so the passage is shown in full.

SA 2689. Mr. FRIST (for Mr. Shelby) proposed an amendment to the bill
S. 467, to extend the applicability of the Terrorism Risk Insurance Act
of 2002; as folllows:

       In lieu of the matter proposed to be inserted, insert the
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Terrorism Risk Insurance
     Extension Act of 2005''.

     SEC. 2. EXTENSION OF TERRORISM RISK INSURANCE PROGRAM.

       (a) Program Extension.--Section 108(a) of the Terrorism
     Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat.
     2336) is amended by striking ``2005'' and inserting ``2007''.
       (b) Mandatory Availability.--Section 103(c) of the
     Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note;
     116 Stat. 2327) is amended--
       (1) by striking paragraph (2);
       (2) by striking ``AVAILABILITY.--'' and all that follows
     through ``each entity'' and inserting ``AVAILABILITY.--During
     each Program Year, each entity''; and
       (3) by redesignating subparagraphs (A) and (B) as
     paragraphs (1) and (2), respectively, and moving the margins
     2 ems to the left.

     SEC. 3. AMENDMENTS TO DEFINED TERMS.

       (a) Program Years.--Section 102(11) of the Terrorism Risk
     Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326)
     is amended by adding at the end the following:
       ``(E) Program year 4.--The term `Program Year 4' means the
     period beginning on January 1, 2006 and ending on December
     31, 2006.
       ``(F) Program year 5.--The term `Program Year 5' means the
     period beginning on January 1, 2007 and ending on December
     31, 2007.''.
       (b) Exclusions From Covered Lines.--
       (1) In general.--Section 102(12)(B) of the Terrorism Risk
     Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326)
     is amended--
       (A) in clause (vi), by striking ``or'' at the end;
       (B) in clause (vii), by striking the period at the end and
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(viii) commercial automobile insurance;
       ``(ix) burglary and theft insurance;
       ``(x) surety insurance;
       ``(xi) professional liability insurance; or
       ``(xii) farm owners multiple peril insurance.''.
       (2) Conforming amendment.--Section 102(12)(A) of the
     Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note;
     116 Stat. 2326) is amended by striking ``surety insurance''
     and inserting ``directors and officers liability insurance''.
       (c) Insurer Deductibles.--Section 102(7) of the Terrorism
     Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat.
     2325) is amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) by redesignating subparagraph (E) as subparagraph (G);
       (3) by inserting after subparagraph (D), the following:
       ``(E) for Program Year 4, the value of an insurer's direct
     earned premiums over the calendar year immediately preceding
     Program Year 4, multiplied by 17.5 percent;
       ``(F) for Program Year 5, the value of an insurer's direct
     earned premiums over the calendar year immediately preceding
     Program Year 5, multiplied by 20 percent; and''; and

[[Page S13930]]

       (4) in subparagraph (G), as so redesignated, by striking
     ``through (D)'' and all that follows through ``Year 3''and
     inserting the following: ``through (F), for the Transition
     Period or any Program Year''.

     SEC. 4. INSURED LOSS SHARED COMPENSATION.

       Section 103(e) of the Terrorism Risk Insurance Act of 2002
     (15 U.S.C. 6701 note; 116 Stat. 2328) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``through Program Year 4'' before ``shall
     be equal''; and
       (B) by inserting ``, and during Program Year 5 shall be
     equal to 85 percent,'' after ``90 percent''; and
       (2) in each of paragraphs (2) and (3), by striking
     ``Program Year 2 or Program Year 3'' each place that term
     appears and inserting ``any of Program Years 2 through 5''.

     SEC. 5. AGGREGATE RETENTION AMOUNTS AND RECOUPMENT OF FEDERAL
                   SHARE.

       (a) Aggregate Retention Amounts.--Section 103(e)(6) of the
     Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note;
     116 Stat. 2329) is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking the period at the end
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(D) for Program Year 4, the lesser of--
       ``(i) $25,000,000,000; and
       ``(ii) the aggregate amount, for all insurers, of insured
     losses during such Program Year; and
       ``(E) for Program Year 5, the lesser of--
       ``(i) $27,500,000,000; and
       ``(ii) the aggregate amount, for all insurers, of insured
     losses during such Program Year.''.
       (b) Recoupment of Federal Share.--Section 103(e)(7) of the
     Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note;
     116 Stat. 2329) is amended--
       (1) in subparagraph (A), by striking ``, (B), and (C)'' and
     inserting ``through (E)''; and
       (2) in each of subparagraphs (B) and (C), by striking
     ``subparagraph (A), (B), or (C)'' each place that term
     appears and inserting ``any of subparagraphs (A) through
     (E)''.

     SEC. 6. PROGRAM TRIGGER.

       Section 103(e)(1) of the Terrorism Risk Insurance Act of
     2002 (15 U.S.C. note, 116 Stat. 2328) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (C);
     and
       (2) by inserting after subparagraph (A) the following:
       ``(B) Program trigger.--In the case of a certified act of
     terrorism occurring after March 31, 2006, no compensation
     shall be paid by the Secretary under subsection (a), unless
     the aggregate industry insured losses resulting from such
     certified act of terrorism exceed--
       ``(i) $50,000,000, with respect to such insured losses
     occurring in Program Year 4; or
       ``(ii) $100,000,000, with respect to such insured losses
     occurring in Program Year 5.''.

     SEC. 7. LITIGATION MANAGEMENT.

       Section 107(a) of the Terrorism Risk Insurance Act of 2002
     (15 U.S.C. 6701 note; 116 Stat. 2335) is amended by adding at
     the end the following:
       ``(6) Authority of the secretary.--Procedures and
     requirements established by the Secretary under section 50.82
     of part 50 of title 31 of the Code of Federal Regulations (as
     in effect on the date of issuance of that section in final
     form) shall apply to any cause of action described in
     paragraph (1) of this subsection.''.

     SEC. 8. ANALYSIS AND REPORT ON TERRORISM RISK COVERAGE
                   CONDITIONS AND SOLUTIONS.

       Section 108 of the Terrorism Risk Insurance Act of 2002 (15
     U.S.C. 6701 note; 116 Stat. 2336) is amended by adding at the
     end the following:
       ``(e) Analysis of Market Conditions for Terrorism Risk
     Insurance.--
       ``(1) In general.--The President's Working Group on
     Financial Markets, in consultation with the National
     Association of Insurance Commissioners, representatives of
     the insurance industry, representatives of the securities
     industry, and representatives of policy holders, shall
     perform an analysis regarding the long-term availability and
     affordability of insurance for terrorism risk, including--
       ``(A) group life coverage; and
       ``(B) coverage for chemical, nuclear, biological, and
     radiological events.
       ``(2) Report.--Not later than September 30, 2006, the
     President's Working Group on Financial Markets shall submit a
     report to the Committee on Banking, Housing, and Urban
     Affairs of the Senate and the Committee on Financial Services
     of the House of Representatives on its findings pursuant to
     the analysis conducted under subsection (a).''.
                                 ______