To extend the terrorism risk insurance program.

Summary: Terrorism Risk Insurance Program Extension Act of 2004 - Amends the Terrorism Risk Insurance Act of 2002 to extend the terrorism risk insurance program through December 31, 2008.

Restricts "insured loss" with respect to the Final Program Year to certain losses covered by property and casualty insurance issued before January 1, 2008, and expiring not later than December 31, 2008.

Sets forth an insurer deductible that is the value of an insurer's direct earned premiums multiplied by 15 percent for Program Years 3, 4, and 5, and for the Final Program Year.

Redefines "insured loss" to include group life insurance coverage.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Terrorism Risk Insurance Program 
Extension Act of 2004''.

SEC. 2. PROGRAM YEARS.

    Paragraph (11) of section 102 of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended by adding at the end the 
following new subparagraphs:
                    ``(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.
                    ``(G) Final program year.--The term `Final Program 
                Year' means the period beginning on January, 1, 2008 
                and ending on December 31, 2008.''.

SEC. 3. APPLICABILITY OF PROGRAM TO FINAL PROGRAM YEAR.

    Paragraph (5) of section 102 of the Terrorism Risk Insurance Act of 
2002 (15 U.S.C. 6701 note) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii) and realigning such paragraphs, as so 
        redesignated, so as to be indented 6 ems from the left margin;
            (2) by striking all of the matter that precedes 
        subparagraph (A) and inserting the following:
            ``(5) Insured loss.--
                    ``(A) In general.--The term `insured loss' means 
                any loss resulting from an act of terrorism (including 
                an act of war, in the case of workers' compensation) 
                that is covered by primary or excess property and 
                casualty insurance issued by an insurer if such loss--
                ''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Final program year.--With respect to the 
                Final Program Year, such term means only such losses as 
                are described in subparagraph (A) that are covered by 
                primary or excess property and casualty insurance 
                that--
                            ``(i) is issued before January 1, 2008; and
                            ``(ii) expires not later than December 31, 
                        2008.''.

SEC. 4. INSURER DEDUCTIBLE.

    Paragraph (7) of section 102 of the Terrorism Risk Insurance Act of 
2002 (15 U.S.C. 6701 note) is amended--
            (1) by striking subparagraph (D) and inserting the 
        following new subparagraph:
                    ``(D) for Program Years 3, 4, and 5, the value of 
                an insurer's direct earned premiums over the calendar 
                year immediately preceding such Program Year, 
                multiplied by 15 percent;'';
            (2) in subparagraph (E)--
                    (A) by striking ``or Program Year 3'' and inserting 
                ``Program Year 3, Program Year 4, or Program Year 5''; 
                and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(F) for the Final Program Year, the value of an 
                insurer's direct earned premiums for the terms 
                remaining under any policies for insurance described in 
                paragraph (5)(B) as of the occurrence of the act of 
                terrorism during such Year that results in insured 
                losses, as determined by the Secretary, multiplied by 
                15 percent.''.

SEC. 5. MANDATORY AVAILABILITY.

    Subsection (c) of section 103 of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended--
            (1) by striking all of the matter that precedes 
        subparagraph (A) of paragraph (1) and inserting the following:
    ``(c) Mandatory Availability.--During the period beginning on the 
first day of the Transition Period and ending on the last day of 
Program Year 5, each entity that meets the definition of an insurer 
under section 102--'';
            (2) by striking paragraph (2); and
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2) and realigning such paragraphs, as so 
        redesignated, so as to be indented 2 ems from the left margin.

SEC. 6. INSURED LOSS SHARED COMPENSATION.

    Subsection (e) of section 103 of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in paragraph (2)(A), by striking ``or Program Year 3'' 
        and inserting ``, Program Year 3, Program Year 4, Program Year 
        5, or the Final Program Year'';
            (2) in paragraph (3), by striking ``or Program Year 3'' and 
        inserting ``, Program Year 3, Program Year 4, Program Year 5, 
        or the Final Program Year''; and
            (3) in paragraph (6)(C), by striking ``Program Year 3'' and 
        inserting ``each of Program Year 3, Program Year 4, Program 
        Year 5, and the Final Program Year''.

SEC. 7. COVERAGE OF GROUP LIFE INSURANCE.

    (a) In General.--Section 102(5) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended in the matter that precedes 
subparagraph (A) by inserting ``or group life insurance'' after 
``property and casualty insurance''.
    (b) Technical and Conforming Amendments.--The Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in section 102(1)(B)(ii), by inserting ``and group life 
        insurance'' after ``property and casualty insurance'';
            (2) in section102(4), by inserting ``or group life 
        insurance'' after ``property and casualty insurance'';
            (3) in section 102(6)(B), by inserting ``or group life 
        insurance coverage'' after ``property and casualty insurance 
        coverage'';
            (4) in section 102(12)(B)(v), by striking ``including group 
        life insurance'' and inserting ``(except that this exclusion 
        from the definition under this paragraph shall not be construed 
        as affecting the inclusion of group life insurance coverage 
        within the Program under this title)'';
            (5) in section 103(e)(8)(A)(i), by inserting ``and group 
        life insurance policies'' after ``property and casualty 
        insurance policies'';
            (6) in subparagraphs (A)(iii) and (C) of section 103(e)(8), 
        by inserting ``, or group life insurance coverage, as the case 
        may be,'' after ``property and casualty insurance coverage'';
            (7) in section 103--
                    (A) by striking subsection (h); and
                    (B) by redesignating subsection (i) as subsection 
                (h); and
            (8) in paragraph (1) of section 108(d), by inserting ``and 
        the group life insurance industry'' after ``property and 
        casualty insurance industry'' .

SEC. 8. TERMINATION OF PROGRAM.

    Section 108 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 
6701 note) is amended--
            (1) in subsection (a), striking ``December 31, 2005'' and 
        inserting ``December 31, 2008''; and
            (2) in subsection (d), by adding at the end the following 
        new paragraph:
            ``(3) Final gao study and report.--The Comptroller General 
        of the United States shall conduct an assessment of the matters 
        referred to in paragraph (1) and shall submit a report to the 
        Congress, not later than June 30, 2007, on the results of such 
        study.''.