IB 
Union Calendar No. 478 
108TH CONGRESS 
2D SESSION 
H. R. 4634 
[Report No. 108–780] 
To extend the terrorism insurance program of the Department of the 
Treasury. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 22, 2004 
Mr. SESSIONS (for himself, Mr. BAKER, Mrs. KELLY, Mr. CANTOR, and Ms. 
PRYCE of Ohio) introduced the following bill; which was referred to the 
Committee on Financial Services 
NOVEMBER 18, 2004 
Additional 
sponsors: 
Mr. 
BLUNT, 
Mr. 
ROGERS
of 
Michigan, 
Mr. 
CUNNINGHAM, Mr. KING of New York, Ms. NORTON, Mrs. CAPITO, Mr. 
TIBERI, Mr. MARSHALL, Mr. SANDLIN, Mr. RYUN of Kansas, Mr. FER-
GUSON, Mr. WILSON of South Carolina, Ms. GINNY BROWN-WAITE of 
Florida, Mr. GARRETT of New Jersey, Mr. COLLINS, Mr. GREENWOOD, 
Mr. VITTER, Mr. TERRY, Mr. BOEHNER, Mr. GILLMOR, Mr. SHAYS, Mr. 
REYNOLDS, Mr. GORDON, Mr. WOLF, Mr. MCCOTTER, Mr. MORAN of 
Virginia, Mr. LAHOOD, Mr. SHAW, Mrs. JOHNSON of Connecticut, Mr. 
PITTS, Mr. REHBERG, Mr. ENGLISH, Mr. KENNEDY of Minnesota, Mr. 
LARSON of Connecticut, Mr. SIMMONS, Mr. MICA, Mr. GREEN of Wis-
consin, Mr. MURPHY, Mr. JONES of North Carolina, Mr. CRANE, Mr. 
FOLEY, Mr. GARY G. MILLER of California, Mr. NETHERCUTT, Mr. 
RENZI, Mr. LATOURETTE, Mr. ISSA, Mr. OSE, Mr. WELLER, Mr. CAL-
VERT, Mr. HASTINGS of Washington, Mr. KLINE, Mr. SMITH of Wash-
ington, Mr. KNOLLENBERG, Mr. ISAKSON, Mr. BISHOP of Utah, Mr. 
FRELINGHUYSEN, Mr. BASS, Mr. BURTON of Indiana, Mr. RAMSTAD, Mr. 
HUNTER, Mr. BURGESS, Mr. SAM JOHNSON of Texas, Mr. HALL, Mr. 
THORNBERRY, Ms. GRANGER, Mr. SWEENEY, Mr. BOOZMAN, Mr. PUT-
NAM, Mr. MILLER of Florida, Mr. FORBES, Mr. CRENSHAW, Mr. KEL-
LER, Mr. EHLERS, Mr. PLATTS, Mr. LUCAS of Oklahoma, Mr. BOEH-
LERT, Mr. MCHUGH, Mr. LEACH, Mr. LINCOLN DIAZ-BALART of Florida, 
Mr. BONNER, Ms. HARRIS, Mr. BURR, Mr. WELDON of Pennsylvania, 
Mr. BACHUS, Mr. BRADLEY of New Hampshire, Mr. GILCHREST, Mr.
SAXTON, Mr. BILIRAKIS, Mrs. BIGGERT, Mr. FOSSELLA, Mr. CANNON, 
Ms. HART, Mr. NEY, Mr. MANZULLO, and Mr. PORTER 
Deleted sponsor: Mr. GREEN of Texas (added June 24, 2004; deleted July 13, 
2004) 
NOVEMBER 18, 2004 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 22, 2004] 
A BILL 
To extend the terrorism insurance program of the 
Department of the Treasury. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Terrorism Insurance 
Backstop Extension Act of 2004’’. 
SEC. 2. EXTENSION OF TERRORISM INSURANCE PROGRAM. 
(a) PROGRAM YEARS 4 AND 5.—Paragraph (11) of sec-
tion 102 of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended by adding at the end the fol-
lowing new subparagraphs: 
‘‘(E) PROGRAM
YEAR
4.—The term ‘Pro-
gram Year 4’ means the period beginning on 
January 1, 2006 and ending on December 31, 
2006.
‘‘(F) PROGRAM
YEAR
5.—The term ‘Pro-
gram Year 5’ means the period beginning on 
January 1, 2007 and ending on December 31, 
2007.’’. 
(b) 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 redesignating subparagraph (E) as sub-
paragraph (G); 
(2) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(3) by inserting after subparagraph (D) the fol-
lowing new subparagraphs: 
‘‘(E) for Program Year 4, the value of an 
insurer’s direct earned premiums over the cal-
endar year immediately preceding Program Year 
4, multiplied by 15 percent; 
‘‘(F) for Program Year 5, the value of an 
insurer’s direct earned premiums over the cal-
endar year immediately preceding Program Year 
4, multiplied by 20 percent; and’’; and 
(4) in subparagraph (G) (as so redesignated by 
paragraph (1) of this subsection)— 
(A) by striking ‘‘(D)’’ and inserting ‘‘(F)’’; 
and
(B) by striking ‘‘or Program Year 3’’ and 
inserting ‘‘Program Year 3, Program Year 4, or 
Program Year 5’’. 
(c) MANDATORY AVAILABILITY.—Subsection (c) of sec-
tion 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 Pro-
gram, 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 para-
graphs, as so redesignated, so as to be indented 2 ems 
from the left margin. 
(d) INSURED LOSS SHARED COMPENSATION.—Sub-
section (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 Pro-
gram Year 3’’ and inserting ‘‘, Program Year 3, Pro-
gram Year 4, or Program Year 5’’;
(2) in paragraph (3), by striking ‘‘or Program 
Year 3’’ and inserting ‘‘, Program Year 3, Program 
Year 4, or Program Year 5’’; 
(3) in paragraph (6)— 
(A) in subparagraph (B), by striking ‘‘and’’ 
at the end; 
(B) in subparagraph (C) by striking the pe-
riod at the end and inserting a semicolon; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(D) for Program Year 4, the lesser of— 
‘‘(i) $17,500,000,000; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year; 
‘‘(E) for Program Year 5, the lesser of— 
‘‘(i) $20,000,000,000; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year; and’’; and 
(4) in paragraph (7)— 
(A) in subparagraph (A), by striking ‘‘and 
(C)’’ and inserting ‘‘(C), (D), and (E)’’; and
(B) in subparagraphs (B) and (C), by strik-
ing ‘‘or (C)’’ each place such term appears and 
inserting ‘‘(C), (D), or (E)’’. 
(e) COVERAGE OF GROUP LIFE INSURANCE.— 
(1) IN GENERAL.—Paragraph (5) of section 102 
of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended in the matter that pre-
cedes subparagraph (A) by inserting ‘‘or group life’’ 
after ‘‘property and casualty’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—The Terrorism Risk Insurance Act of 2002 
(15 U.S.C. 6701 note) is amended— 
(A) in section 102— 
(i) in paragraph (1)— 
(I) in subparagraph (B)(i), by in-
serting ‘‘or group life insurance’’ after 
‘‘workers’ compensation’’; and 
(II) in subparagraph (B)(ii), by 
inserting ‘‘and group life insurance’’ 
after ‘‘property and casualty insur-
ance’’; 
(ii) in paragraph (4)— 
(I) by inserting ‘‘or for group life 
insurance’’ after ‘‘property and cas-
ualty insurance’’; and
(II) by striking ‘‘paragraph (5)’’ 
and inserting ‘‘paragraph (6)’’; 
(iii) in paragraph (5), by inserting 
‘‘and group life insurance’’ after ‘‘workers’ 
compensation’’; and 
(iv) in paragraph (6)— 
(I) in subparagraph (A)(i), by in-
serting ‘‘property and casualty or 
group life’’ after ‘‘excess’’; 
(II) in subparagraph (B), by in-
serting ‘‘or group life insurance cov-
erage’’ after ‘‘property and casualty 
insurance coverage’’; 
(v) by redesignating paragraphs (5) 
through (16) as paragraphs (6) through 
(17), respectively; and 
(vi) by inserting after paragraph (4), 
the following new paragraph: 
‘‘(5) GROUP LIFE INSURANCE.—The term ‘group 
life insurance’ means an insurance contract that pro-
vides term life insurance coverage, accidental death 
coverage, or a combination thereof, for a number of 
persons under a single contract, on the basis of a 
group selection of risks.’’; 
(B) in section 103—
(i) in subsection (b)(1), by inserting 
‘‘(including a named beneficiary in the case 
of a group life insurance policy)’’ before the 
second comma; 
(ii) in subsection (c)— 
(I) in paragraph (1) (as so redes-
ignated by subsection (c)(3) of this sec-
tion), by inserting ‘‘and group life’’ 
after ‘‘property and casualty’’; and 
(II) in paragraph (2) (as so redes-
ignated by subsection (c)(3) of this sec-
tion), by inserting ‘‘and group life’’ 
after ‘‘property and casualty’’; 
(iii) in subsection (e)— 
(I) in paragraph (6), by striking 
‘‘For’’ and inserting ‘‘Except as pro-
vided in subparagraph (F) of this 
paragraph, for’’; 
(II) in paragraph (6), by insert-
ing after subparagraph (E) (as added 
by subsection (d)(3)(C) of this section) 
the following new subparagraph: 
‘‘(F) for each of the periods referred to in 
subparagraphs (A) through (E), the amounts 
provided under such subparagraphs, as such
amounts shall be increased by the Secretary be-
fore the expiration of the 90-day period begin-
ning on the date of the enactment of the Ter-
rorism Insurance Backstop Extension Act of 
2004, based on the increase in the size of the 
Program caused by the inclusion of group life in-
surance pursuant to such Act, in proportion to 
the increased premiums involved.’’; 
(III) in paragraph (7)(C), by in-
serting ‘‘or group life insurance’’ after 
‘‘workers compensation’’; 
(IV) in paragraph (8)(A)(i), by 
inserting ‘‘and group life’’ after ‘‘prop-
erty and casualty’’; and 
(V) in paragraph (8), by inserting 
‘‘or group life’’ after ‘‘property and 
casualty’’ each place such term appears 
in subparagraphs (A)(iii) and (C); 
and 
(iv) by striking subsection (h); 
(C) in section 105(c), by inserting ‘‘or 
group life’’ after ‘‘property and casualty’’; and 
(D) in section 108(d)(1), by inserting ‘‘and 
the group life insurance industry’’ after ‘‘prop-
erty and casualty insurance industry’’.
(3) REQUIRED RULEMAKING.—Not later than 90 
days after the date of the enactment of this Act, the 
Secretary of the Treasury shall issue final regulations 
to carry out this subsection. 
(f) STUDY ON LONG-TERM SOLUTIONS.—Section 103 
of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 
6701 note) is amended by striking subsection (i) and insert-
ing the following new subsection: 
‘‘(h) STUDY ON LONG-TERM SOLUTIONS.—By June 1, 
2005, the Secretary shall conduct a study and submit a re-
port to the Congress on alternatives for expanding the avail-
ability and affordability of terrorism insurance after the 
termination of the Program that do not involve a Federal 
financial backstop.’’. 
(g) TERMINATION OF PROGRAM.— 
(1) TERMINATION.—Subsection (a) of section 108 
of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended by striking ‘‘December 
31, 2005’’ and inserting ‘‘December 31, 2007’’. 
(2) FINAL GAO STUDY AND REPORT.—Subsection 
(d) of 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 new paragraph: 
‘‘(3) FINAL
GAO
STUDY
AND
REPORT.—The 
Comptroller General of the United States shall con-