An original bill to reauthorize the Federal terrorism risk insurance program, and for other purposes.

Summary: Terrorism Risk Insurance Program Reauthorization Act of 2007 - (Sec. 2) Amends the Terrorism Risk Insurance Act to revise the definition of an act of terrorism for terrorism risk insurance purposes to eliminate the requirement that the individual or individuals committing a terrorist act be acting on behalf of any foreign person or foreign interest.

Extends the Terrorism Risk Insurance Program through calendar 2014.

(Sec. 4) States that no insurer may be required to make payment for insured losses in excess of its statutory deductible, combined with its statutory share of insured losses.

Requires the Secretary of the Treasury to: (1) notify Congress within 15 days of an act of terrorism on whether the Secretary estimates that aggregate insured losses will exceed $100 billion; (2) promulgate final regulations for determining the pro rata share of insured losses which exceed $100 billion; and (3) report to Congress on the process used to determine the allocation of pro rata payments when insured losses exceed $100 billion.

Requires insurers to disclose to policyholders the $100 billion cap on liability.

(Sec. 5) Directs the Comptroller General to study and report to certain congressional committees regarding: (1) the availability and affordability of insurance coverage for losses caused by terrorist attacks involving nuclear, biological, chemical, or radiological materials; (2) the outlook for such coverage in the future; (3) the capacity of private insurers and state workers compensation funds to manage risk associated with such events; and (4) whether there are specific markets in the United States with unique capacity constraints on the amount of terrorism risk insurance available.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Terrorism Risk 
Insurance Program Reauthorization Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of act of terrorism.
Sec. 3. Reauthorization of the Program.
Sec. 4. Annual liability cap.
Sec. 5. Enhanced reports to Congress.

SEC. 2. DEFINITION OF ACT OF TERRORISM.

    Section 102(1)(A)(iv) of the Terrorism Risk Insurance Act of 2002 
(15 U.S.C. 6701 note) is amended by striking ``acting on behalf of any 
foreign person or foreign interest''.

SEC. 3. REAUTHORIZATION OF THE PROGRAM.

    (a) Termination Date.--Section 108(a) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking 
``2007'' and inserting ``2014''.
    (b) Additional Program Years.--Section 102(11) of the Terrorism 
Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding 
at the end the following:
                    ``(G) Additional program years.--Except when used 
                as provided in subparagraphs (B) through (F), the term 
                `Program Year' means, as the context requires, any of 
                Program Year 1, Program Year 2, Program Year 3, Program 
                Year 4, Program Year 5, or any of calendar years 2008 
                through 2014.''.
    (c) Conforming Amendments.--The Terrorism Risk Insurance Act of 
2002 (15 U.S.C. 6701 note) is amended--
            (1) in section 102(7)(F)--
                    (A) by inserting ``and each Program Year 
                thereafter'' before ``, the value''; and
                    (B) by striking ``preceding Program Year 5'' and 
                inserting ``preceding that Program Year'';
            (2) in section 103(e)(1)(A), by inserting ``and each 
        Program Year thereafter'' after ``Year 5'';
            (3) in section 103(e)(1)(B)(ii), by inserting before the 
        period at the end ``and any Program Year thereafter'';
            (4) in section 103(e)(2)(A), by striking ``of Program Years 
        2 through 5'' and inserting ``Program Year thereafter'';
            (5) in section 103(e)(3), by striking ``of Program Years 2 
        through 5,'' and inserting ``other Program Year''; and
            (6) in section 103(e)(6)(E), by inserting ``and any Program 
        Year thereafter'' after ``Year 5''.

SEC. 4. ANNUAL LIABILITY CAP.

    (a) In General.--Section 103(e)(2) of the Terrorism Risk Insurance 
Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``(until such time as the Congress 
                may act otherwise with respect to such losses)''; and
                    (B) in clause (ii), by striking ``that amount'' and 
                inserting ``the amount of such losses''; and
            (2) in subparagraph (B), by inserting before the period at 
        the end ``, except that, notwithstanding paragraph (1) or any 
        other provision of Federal or State law, no insurer may be 
        required to make any payment for insured losses in excess of 
        its deductible under section 102(7) combined with its share of 
        insured losses under paragraph (1)(A) of this subsection''.
    (b) Notice to Congress.--Section 103(e)(3) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) by adding at the end the following: ``The Secretary 
        shall provide an initial notice to Congress not later than 15 
        days after the date of an act of terrorism, stating whether the 
        Secretary estimates that aggregate insured losses will exceed 
        $100,000,000,000.''; and
            (2) by striking ``and the Congress shall'' and all that 
        follows through the end of the paragraph and inserting a 
        period.
    (c) Regulations for Pro Rata Payments; Report to Congress.--Section 
103(e)(2)(B) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 
6701 note) is amended--
            (1) by striking ``For purposes'' and inserting the 
        following:
                            ``(i) In general.--For purposes''; and
            (2) by adding at the end the following:
                            ``(ii) Regulations.--Not later than 240 
                        days after the date of enactment of the 
                        Terrorism Risk Insurance Program 
                        Reauthorization Act of 2007, the Secretary 
                        shall issue final regulations for determining 
                        the pro rata share of insured losses under the 
                        Program when insured losses exceed 
                        $100,000,000,000, in accordance with clause 
                        (i).
                            ``(iii) Report to congress.--Not later than 
                        120 days after the date of enactment of the 
                        Terrorism Risk Insurance Program 
                        Reauthorization Act of 2007, the Secretary 
                        shall provide 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 describing the 
                        process to be used by the Secretary for 
                        determining the allocation of pro rata payments 
                        for insured losses under the Program when such 
                        losses exceed $100,000,000,000.''.
    (d) Disclosure.--Section 103(b) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) in the case of any policy that is issued after the 
        date of enactment of the Terrorism Risk Insurance Program 
        Reauthorization Act of 2007, the insurer provides clear and 
        conspicuous disclosure to the policyholder of the existence of 
        the $100,000,000,000 cap under subsection (e)(2), at the time 
        of offer, purchase, and renewal of the policy;''.

SEC. 5. ENHANCED REPORTS TO CONGRESS.

    (a) Study and Report on Insurance for Nuclear, Biological, 
Chemical, and Radiological Terrorist Events.--Section 108 of the 
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended 
by adding at the end the following:
    ``(f) Insurance for Nuclear, Biological, Chemical, and Radiological 
Terrorist Events.--
            ``(1) Study.--The Comptroller General of the United States 
        shall examine--
                    ``(A) the availability and affordability of 
                insurance coverage for losses caused by terrorist 
                attacks involving nuclear, biological, chemical, or 
                radiological materials;
                    ``(B) the outlook for such coverage in the future; 
                and
                    ``(C) the capacity of private insurers and State 
                workers compensation funds to manage risk associated 
                with nuclear, biological, chemical, and radiological 
                terrorist events.
            ``(2) Report.--Not later than 1 year after the date of 
        enactment of the Terrorism Risk Insurance Program 
        Reauthorization Act of 2007, the Comptroller General shall 
        submit to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Financial Services of the 
        House of Representatives a report containing a detailed 
        statement of the findings under paragraph (1), and 
        recommendations for any legislative, regulatory, 
        administrative, or other actions at the Federal, State, or 
        local levels that the Comptroller General considers appropriate 
        to expand the availability and affordability of insurance for 
        nuclear, biological, chemical, or radiological terrorist 
        events.''.
    (b) Study and Report on Availability and Affordability of Terrorism 
Insurance in Specific Markets.--Section 108 of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the 
end the following:
    ``(g) Availability and Affordability of Terrorism Insurance in 
Specific Markets.--
            ``(1) Study.--The Comptroller General of the United States 
        shall conduct a study to determine whether there are specific 
        markets in the United States where there are unique capacity 
        constraints on the amount of terrorism risk insurance 
        available.
            ``(2) Elements of study.--The study required by paragraph 
        (1) shall contain--
                    ``(A) an analysis of both insurance and reinsurance 
                capacity in specific markets, including pricing and 
                coverage limits in existing policies;
                    ``(B) an assessment of the factors contributing to 
                any capacity constraints that are identified; and
                    ``(C) recommendations for addressing those capacity 
                constraints.
            ``(3) Report.--Not later than 180 days after the date of 
        enactment of the Terrorism Risk Insurance Program 
        Reauthorization Act of 2007, the Comptroller General shall 
        submit a report on the study required by paragraph (1) to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives.''.
    (c) Ongoing Reports.--Section 108(e) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``ongoing'' before ``analysis''; 
                and
                    (B) by striking ``, including'' and all that 
                follows through the end of the paragraph, and inserting 
                a period; and
            (2) in paragraph (2)--
                    (A) by inserting ``and thereafter in 2010 and 
                2013,'' after ``2006,''; and
                    (B) by striking ``subsection (a)'' and inserting 
                ``paragraph (1)''.