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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 467 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
109th CONGRESS
  1st Session
                                 S. 467

_______________________________________________________________________

                                 AN ACT

 
  To extend the applicability of the Terrorism Risk Insurance Act of 
                                 2002.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Terrorism Risk Insurance Extension 
Act of 2005''.

SEC. 2. EXTENSION OF TERRORISM RISK INSURANCE PROGRAM.

    (a) Program Extension.--Section 108(a) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2336) is amended 
by striking ``2005'' and inserting ``2007''.
    (b) Mandatory Availability.--Section 103(c) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2327) is 
amended--
            (1) by striking paragraph (2);
            (2) by striking ``availability.--'' and all that follows 
        through ``each entity'' and inserting ``availability.--During 
        each Program Year, each entity''; and
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively, and moving the margins 2 
        ems to the left.

SEC. 3. AMENDMENTS TO DEFINED TERMS.

    (a) Covered Acts of Terrorism.--Section 102(1)(B)(ii) of the 
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 
2324) is amended by inserting before the period ``, with respect to an 
act occurring before Program Year 4, $50,000,000 with respect to an act 
occurring in Program Year 4, or $100,000,000 with respect to an act 
occurring in Program Year 5''.
    (b) Program Years.--Section 102(11) of the Terrorism Risk Insurance 
Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326) is amended by adding 
at the end the following:
                    ``(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.''.
    (c) Exclusions From Covered Lines.--
            (1) In general.--Section 102(12)(B) of the Terrorism Risk 
        Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326) is 
        amended--
                    (A) in clause (vi), by striking ``or'' at the end;
                    (B) in clause (vii), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
                            ``(viii) commercial automobile insurance;
                            ``(ix) burglary and theft insurance;
                            ``(x) surety insurance;
                            ``(xi) professional liability insurance; or
                            ``(xii) farm owners multiple peril 
                        insurance.''.
            (2) Conforming amendment.--Section 102(12)(A) of the 
        Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 
        Stat. 2326) is amended by striking ``surety insurance'' and 
        inserting ``directors and officers liability insurance''.
    (d) Insurer Deductibles.--Section 102(7) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2325) is 
amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) by redesignating subparagraph (E) as subparagraph (G);
            (3) by inserting after subparagraph (D), the following:
                    ``(E) for Program Year 4, the value of an insurer's 
                direct earned premiums over the calendar year 
                immediately preceding Program Year 4, multiplied by 
                17.5 percent;
                    ``(F) for Program Year 5, the value of an insurer's 
                direct earned premiums over the calendar year 
                immediately preceding Program Year 5, multiplied by 20 
                percent; and''; and
            (4) in subparagraph (G), as so redesignated, by striking 
        ``through (D)'' and all that follows through ``Year 3''and 
        inserting the following: ``through (F), for the Transition 
        Period or any Program Year''.

SEC. 4. INSURED LOSS SHARED COMPENSATION.

    Section 103(e) of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note; 116 Stat. 2328) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``through Program Year 4'' before 
                ``shall be equal''; and
                    (B) by inserting ``, and during Program Year 5 
                shall be equal to 85 percent,'' after ``90 percent''; 
                and
            (2) in each of paragraphs (2) and (3), by striking 
        ``Program Year 2 or Program Year 3'' each place that term 
        appears and inserting ``any of Program Years 2 through 5''.

SEC. 5. AGGREGATE RETENTION AMOUNTS AND RECOUPMENT OF FEDERAL SHARE.

    (a) Aggregate Retention Amounts.--Section 103(e)(6) of the 
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 
2329) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(D) for Program Year 4, the lesser of--
                            ``(i) $17,500,000,000; and
                            ``(ii) the aggregate amount, for all 
                        insurers, of insured losses during such Program 
                        Year; and
                    ``(E) for Program Year 5, the lesser of--
                            ``(i) $20,000,000,000; and
                            ``(ii) the aggregate amount, for all 
                        insurers, of insured losses during such Program 
                        Year.''.
    (b) Recoupment of Federal Share.--Section 103(e)(7) of the 
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 
2329) is amended--
            (1) in subparagraph (A), by striking ``, (B), and (C)'' and 
        inserting ``through (E)''; and
            (2) in each of subparagraphs (B) and (C), by striking 
        ``subparagraph (A), (B), or (C)'' each place that term appears 
        and inserting ``any of subparagraphs (A) through (E)''.

SEC. 6. LITIGATION MANAGEMENT.

    Section 107(a) of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note; 116 Stat. 2335) is amended by adding at the end the 
following:
            ``(6) Authority of the secretary.--Procedures and 
        requirements established by the Secretary under section 50.82 
        of part 50 of title 31 of the Code of Federal Regulations (as 
        in effect on the date of issuance of that section in final 
        form) shall apply to any cause of action described in paragraph 
        (1) of this subsection.''.

SEC. 7. ANALYSIS AND REPORT ON TERRORISM RISK COVERAGE CONDITIONS AND 
              SOLUTIONS.

    Section 108 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 
6701 note; 116 Stat. 2336) is amended by adding at the end the 
following:
    ``(e) Analysis of Market Conditions for Terrorism Risk Insurance.--
            ``(1) In general.--The President's Working Group on 
        Financial Markets, in consultation with the National 
        Association of Insurance Commissioners, representatives of the 
        insurance industry, representatives of the securities industry, 
        and representatives of policy holders, shall perform an 
        analysis regarding the long-term availability and affordability 
        of insurance for terrorism risk, including--
                    ``(A) group life coverage; and
                    ``(B) coverage for chemical, nuclear, biological, 
                and radiological events.
            ``(2) Report.--Not later than September 30, 2006, the 
        President's Working Group on Financial Markets shall submit 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 on its findings pursuant to the 
        analysis conducted under subsection (a).''.

            Passed the Senate November 18 (legislative day, November 
      17), 2005.

            Attest:

                                                             Secretary.
109th CONGRESS

  1st Session

                                 S. 467

_______________________________________________________________________

                                 AN ACT

  To extend the applicability of the Terrorism Risk Insurance Act of 
                                 2002.
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