I 

108TH CONGRESS 

2D SESSION H. R. 4772

To extend the terrorism risk insurance program. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 7, 2004

Mr. CAPUANO (for himself, Mr. ISRAEL, Mr. FRANK of Massachusetts, Mr. 

KANJORSKI, Mr. GUTIERREZ, Mr. FROST, Mrs. MALONEY, Ms. WATERS, 

Mr. CROWLEY, Mr. MOORE, Ms. HOOLEY of Oregon, Mr. MEEKS of New 

York, Mrs. MCCARTHY of New York, Mr. EMANUEL, Mr. SHERMAN, Mr. 

MILLER of North Carolina, Mr. INSLEE, Mr. SCOTT of Georgia, Mr. 

LYNCH, Mr. DAVIS of Alabama, Mr. WATT, Mr. MATHESON, Mr. BELL, 

Mr. CLAY, Mr. ROSS, Mr. GONZALEZ, Mr. KIND, and Mr. SANDLIN) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL

To extend the terrorism risk insurance program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Terrorism Risk Insur5 ance Program Extension Act of 2004’’. 
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1 SEC. 2. PROGRAM YEARS. 

2 Paragraph (11) of section 102 of the Terrorism Risk 

3 Insurance Act of 2002 (15 U.S.C. 6701 note) is amended 

4 by adding at the end the following new subparagraphs: 

5 ‘‘(E) PROGRAM YEAR 4.—The term ‘Pro6 gram Year 4’ means the period beginning on 

7 January 1, 2006 and ending on December 31, 

8 2006. 

9 ‘‘(F) PROGRAM YEAR 5.—The term ‘Pro10 gram Year 5’ means the period beginning on 

11 January 1, 2007 and ending on December 31, 

12 2007. 

13 ‘‘(G) FINAL PROGRAM YEAR.—The term 

14 ‘Final Program Year’ means the period begin15 ning on January, 1, 2008 and ending on De16 cember 31, 2008.’’. 

17 SEC. 3. APPLICABILITY OF PROGRAM TO FINAL PROGRAM 

18 YEAR. 

19 Paragraph (5) of section 102 of the Terrorism Risk 

20 Insurance Act of 2002 (15 U.S.C. 6701 note) is amend21 ed—

22 (1) by redesignating subparagraphs (A) and 

23 (B) as clauses (i) and (ii) and realigning such para24 graphs, as so redesignated, so as to be indented 6 

25 ems from the left margin; 
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1 (2) by striking all of the matter that precedes 

2 subparagraph (A) and inserting the following: 

3 ‘‘(5) INSURED LOSS.—

4 ‘‘(A) IN GENERAL.—The term ‘insured 

5 loss’ means any loss resulting from an act of 

6 terrorism (including an act of war, in the case 

7 of workers’ compensation) that is covered by 

8 primary or excess property and casualty insur9 ance issued by an insurer if such loss—’’; and 

10 (3) by adding at the end the following new sub11 paragraph: 

12 ‘‘(B) FINAL PROGRAM YEAR.—With re13 spect to the Final Program Year, such term 

14 means only such losses as are described in sub15 paragraph (A) that are covered by primary or 

16 excess property and casualty insurance that—

17 ‘‘(i) is issued before January 1, 2008; 

18 and 

19 ‘‘(ii) expires not later than December 

20 31, 2008.’’. 

21 SEC. 4. INSURER DEDUCTIBLE. 

22 Paragraph (7) of section 102 of the Terrorism Risk 

23 Insurance Act of 2002 (15 U.S.C. 6701 note) is amend24 ed—
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1 (1) by striking subparagraph (D) and inserting 

2 the following new subparagraph: 

3 ‘‘(D) for Program Years 3, 4, and 5, the 

4 value of an insurer’s direct earned premiums 

5 over the calendar year immediately preceding 

6 such Program Year, multiplied by 15 percent;’’; 

7 (2) in subparagraph (E)—

8 (A) by striking ‘‘or Program Year 3’’ and 

9 inserting ‘‘Program Year 3, Program Year 4, or 

10 Program Year 5’’; and 

11 (B) by striking the period at the end and 

12 inserting ‘‘; and’’; and 

13 (3) by adding at the end the following new sub14 paragraph: 

15 ‘‘(F) for the Final Program Year, the 

16 value of an insurer’s direct earned premiums 

17 for the terms remaining under any policies for 

18 insurance described in paragraph (5)(B) as of 

19 the occurrence of the act of terrorism during 

20 such Year that results in insured losses, as de21 termined by the Secretary, multiplied by 15 

22 percent.’’. 
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1 SEC. 5. MANDATORY AVAILABILITY. 

2 Subsection (c) of section 103 of the Terrorism Risk 

3 Insurance Act of 2002 (15 U.S.C. 6701 note) is amend4 ed—

5 (1) by striking all of the matter that precedes 

6 subparagraph (A) of paragraph (1) and inserting the 

7 following: 

8 ‘‘(c) MANDATORY AVAILABILITY.—During the period 

9 beginning on the first day of the Transition Period and 

10 ending on the last day of Program Year 5, each entity 

11 that meets the definition of an insurer under section 

12 102—’’; 

13 (2) by striking paragraph (2); and 

14 (3) by redesignating subparagraphs (A) and 

15 (B) as paragraphs (1) and (2) and realigning such 

16 paragraphs, as so redesignated, so as to be indented 

17 2 ems from the left margin. 

18 SEC. 6. INSURED LOSS SHARED COMPENSATION. 

19 Subsection (e) of section 103 of the Terrorism Risk 

20 Insurance Act of 2002 (15 U.S.C. 6701 note) is amend21 ed—

22 (1) in paragraph (2)(A), by striking ‘‘or Pro23 gram Year 3’’ and inserting ‘‘, Program Year 3, 

24 Program Year 4, Program Year 5, or the Final Pro25 gram Year’’; 
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1 (2) in paragraph (3), by striking ‘‘or Program 

2 Year 3’’ and inserting ‘‘, Program Year 3, Program 

3 Year 4, Program Year 5, or the Final Program 

4 Year’’; and 

5 (3) in paragraph (6)(C), by striking ‘‘Program 

6 Year 3’’ and inserting ‘‘each of Program Year 3, 

7 Program Year 4, Program Year 5, and the Final 

8 Program Year’’. 

9 SEC. 7. COVERAGE OF GROUP LIFE INSURANCE. 

10 (a) IN GENERAL.—Section 102(5) of the Terrorism 

11 Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is 

12 amended in the matter that precedes subparagraph (A) 

13 by inserting ‘‘or group life insurance’’ after ‘‘property and 

14 casualty insurance’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

16 The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 

17 6701 note) is amended— 

18 (1) in section 102(1)(B)(ii), by inserting ‘‘and 

19 group life insurance’’ after ‘‘property and casualty 

20 insurance’’; 

21 (2) in section102(4), by inserting ‘‘or group life 

22 insurance’’ after ‘‘property and casualty insurance’’; 

23 (3) in section 102(6)(B), by inserting ‘‘or group 

24 life insurance coverage’’ after ‘‘property and casualty 

25 insurance coverage’’; 
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1 (4) in section 102(12)(B)(v), by striking ‘‘in2 cluding group life insurance’’ and inserting ‘‘(except 

3 that this exclusion from the definition under this 

4 paragraph shall not be construed as affecting the in5 clusion of group life insurance coverage within the 

6 Program under this title)’’; 

7 (5) in section 103(e)(8)(A)(i), by inserting ‘‘and 

8 group life insurance policies’’ after ‘‘property and 

9 casualty insurance policies’’; 

10 (6) in subparagraphs (A)(iii) and (C) of section 

11 103(e)(8), by inserting ‘‘, or group life insurance 

12 coverage, as the case may be,’’ after ‘‘property and 

13 casualty insurance coverage’’; 

14 (7) in section 103—

15 (A) by striking subsection (h); and 

16 (B) by redesignating subsection (i) as sub17 section (h); and 

18 (8) in paragraph (1) of section 108(d), by in19 serting ‘‘and the group life insurance industry’’ after 

20 ‘‘property and casualty insurance industry’’ . 

21 SEC. 8. TERMINATION OF PROGRAM. 

22 Section 108 of the Terrorism Risk Insurance Act of 

23 2002 (15 U.S.C. 6701 note) is amended—

24 (1) in subsection (a), striking ‘‘December 31, 

25 2005’’ and inserting ‘‘December 31, 2008’’; and 
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1 (2) in subsection (d), by adding at the end the 

2 following new paragraph: 

3 ‘‘(3) FINAL GAO STUDY AND REPORT.—The 

4 Comptroller General of the United States shall con5 duct an assessment of the matters referred to in 

6 paragraph (1) and shall submit a report to the Con7 gress, not later than June 30, 2007, on the results 

8 of such study.’’.

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