Terrorism Risk Insurance Program Reauthorization Act of 2007 

(Enrolled as Agreed to or Passed by Both House and Senate)

--H.R.2761-- 

H.R.2761 

One Hundred Tenth Congress 

of the 

United States of America 

AT THE FIRST SESSION 

Begun and held at the City of Washington on Thursday, 

the fourth day of January, two thousand and seven 

An Act 

To extend the Terrorism Insurance Program of the Department of the 

Treasury, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, 

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.