To extend the Terrorism Insurance Program of the Department of the Treasury, and for other purposes.

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;''.
    (e) Surcharges.--Section 103(e) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended--
        (1) in paragraph (7)--
            (A) in subparagraph (C), by inserting ``133 percent of'' 
        before ``any mandatory recoupment''; and
            (B) by adding at the end the following:
            ``(E) Timing of mandatory recoupment.--
                ``(i) In general.--If the Secretary is required to 
            collect terrorism loss risk-spreading premiums under 
            subparagraph (C)--

                    ``(I) for any act of terrorism that occurs on or 
                before December 31, 2010, the Secretary shall collect 
                all required premiums by September 30, 2012;
                    ``(II) for any act of terrorism that occurs between 
                January 1 and December 31, 2011, the Secretary shall 
                collect 35 percent of any required premiums by 
                September 30, 2012, and the remainder by September 30, 
                2017; and
                    ``(III) for any act of terrorism that occurs on or 
                after January 1, 2012, the Secretary shall collect all 
                required premiums by September 30, 2017.

                ``(ii) Regulations required.--Not later than 180 days 
            after the date of enactment of this subparagraph, the 
            Secretary shall issue regulations describing the procedures 
            to be used for collecting the required premiums in the time 
            periods referred to in clause (i).
            ``(F) Notice of estimated losses.--Not later than 90 days 
        after the date of an act of terrorism, the Secretary shall 
        publish an estimate of aggregate insured losses, which shall be 
        used as the basis for determining whether mandatory recoupment 
        will be required under this paragraph. Such estimate shall be 
        updated as appropriate, and at least annually.''; and
        (2) in paragraph (8)--
            (A) in subparagraph (C)--
                (i) by striking ``(including any additional amount 
            included in such premium'' and inserting ``collected''; and
                (ii) by striking ``(D))'' and inserting ``(D)''; and
            (B) in subparagraph (D)(ii), by inserting before the period 
        at the end ``, in accordance with the timing requirements of 
        paragraph (7)(E)''.

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)''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Terrorism Risk Insurance Program Reauthorization Act of 2007 - Amends the Terrorism Risk Insurance Act to redefine an act of terrorism 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. 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 their liability. Modifies the federal surcharge imposed to recoup federal financial assistance provided in connection with all acts of terrorism during a Terrorism Insurance Program Year. Requires a terrorism loss risk-spreading premium in an amount equal to 133 of any mandatory recoupment amount for such period. Establishes deadlines for the collection of terrorism loss risk-spreading premiums for acts of terrorism occurring during specified periods. 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. And (3) the capacity of private insurers and state workers compensation funds to manage risk associated with such events. Directs the Comptroller General to study and report to certain congressional committees on whether there are specific markets in the United States with unique capacity constraints on the amount of terrorism risk insurance available.