[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 467 Enrolled Bill (ENR)]
S.467
One Hundred Ninth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the fourth day of January, two thousand and five
An Act
To extend the applicability of the Terrorism Risk Insurance Act of 2002.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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
(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).''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.