‘‘(b) INTERIM RULES AND PROCEDURES.—The Sec-
retary may issue interim final rules or procedures speci-
fying the manner in which— 
‘‘(1) insurers may file and certify claims under 
the Program; 
‘‘(2) the Federal share of compensation for in-
sured losses will be paid under the Program, includ-
ing payments based on estimates of or actual insured 
losses; 
‘‘(3) the Secretary may, at any time, seek repay-
ment from or reimburse any insurer, based on esti-
mates of insured losses under the Program, to effec-
tuate the insured loss sharing provisions in section 
103; and 
‘‘(4) the Secretary will determine any final net-
ting of payments under the Program, including pay-
ments owed to the Federal Government from any in-
surer and any Federal share of compensation for in-
sured losses owed to any insurer, to effectuate the in-
sured loss sharing provisions in section 103. 
‘‘(c) CONSULTATION.—The Secretary shall consult 
with the NAIC, as the Secretary determines appropriate, 
concerning the Program.
‘‘(d) CONTRACTS FOR SERVICES.—The Secretary may 
employ persons or contract for services as may be necessary 
to implement the Program. 
‘‘(e) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—The Secretary may assess a 
civil monetary penalty in an amount not exceeding 
the amount under paragraph (2) against any insurer 
that the Secretary determines, on the record after op-
portunity for a hearing—— 
‘‘(A) has failed to charge, collect, or remit 
terrorism loss risk-spreading premiums under 
section 103(e) in accordance with the require-
ments of, or regulations issued under, this title; 
‘‘(B) has intentionally provided to the Sec-
retary erroneous information regarding premium 
or loss amounts; 
‘‘(C) submits to the Secretary fraudulent 
claims under the Program for insured losses; 
‘‘(D) has failed to provide the disclosures re-
quired under subsection (f); or 
‘‘(E) has otherwise failed to comply with the 
provisions of, or the regulations issued under, 
this title. 
‘‘(2) AMOUNT.—The amount under this para-
graph is the greater of $1,000,000 and, in the case of
any failure to pay, charge, collect, or remit amounts 
in accordance with this title or the regulations issued 
under this title, such amount in dispute. 
‘‘(3) RECOVERY
OF
AMOUNT
IN
DISPUTE.—A 
penalty under this subsection for any failure to pay, 
charge, collect, or remit amounts in accordance with 
this title or the regulations under this title shall be 
in addition to any such amounts recovered by the 
Secretary. 
‘‘(f) SUBMISSION OF PREMIUM INFORMATION.— 
‘‘(1) IN GENERAL.—The Secretary shall annually 
compile information on the terrorism risk insurance 
premium rates of insurers for the preceding year. 
‘‘(2) ACCESS TO INFORMATION.—To the extent 
that such information is not otherwise available to the 
Secretary, the Secretary may require each insurer to 
submit to the NAIC terrorism risk insurance pre-
mium rates, as necessary to carry out paragraph (1), 
and the NAIC shall make such information available 
to the Secretary. 
‘‘(3) AVAILABILITY
TO
CONGRESS.—The Sec-
retary shall make information compiled under this 
subsection available to the Congress, upon request. 
‘‘(g) FUNDING.—
‘‘(1) FEDERAL PAYMENTS.—There are hereby ap-
propriated, out of funds in the Treasury not otherwise 
appropriated, such sums as may be necessary to pay 
the Federal share of compensation for insured losses 
under the Program to the extent such Federal share 
exceeds funds collected by the Secretary pursuant to 
section 103(e)(2). 
‘‘(2) ADMINISTRATIVE
EXPENSES.—There are 
hereby appropriated, out of funds in the Treasury not 
otherwise appropriated, such sums as may be nec-
essary to pay reasonable costs of administering the 
Program. 
‘‘SEC. 105. ESTABLISHMENT OF COMMISSION ON TER-
RORISM RISK INSURANCE. 
‘‘(a) IN GENERAL.—There is hereby established the 
Commission on Terrorism Risk Insurance (in this section 
referred to as the ‘Commission’). 
‘‘(b) MEMBERSHIP.— 
‘‘(1) The Commission shall consist of 11 mem-
bers, as follows: 
‘‘(A) The Secretary of the Treasury or his 
designee. 
‘‘(B) One State insurance commissioner 
designated by the members of the NAIC.
‘‘(C) Nine members appointed by the Presi-
dent, who shall be— 
‘‘(i) a representative of group life in-
surers; 
‘‘(ii) a representative of property and 
casualty insurers with direct written pre-
mium of $1,000,000,000 or less; 
‘‘(iii) a representative of property and 
casualty insurers with direct written pre-
mium of more than $1,000,000,000; 
‘‘(iv) a representative of multiline in-
surers; 
‘‘(v) a representative of independent 
insurance agents; 
‘‘(vi) a representative of insurance bro-
kers; 
‘‘(vii) a policyholder representative; 
‘‘(viii) a representative of the survivors 
of the victims of the attacks of September 
11, 2001; and 
‘‘(ix) a representative of the reinsur-
ance industry. 
‘‘(2) SECRETARY.—The Program Director of the 
Terrorism Risk Insurance Act shall serve as Secretary 
of the Commission. The Secretary of the Commission
shall determine the manner in which the Commission 
shall operate, including funding and staffing. 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—The Commission shall iden-
tify and make recommendations regarding— 
‘‘(A) possible actions to encourage, facili-
tate, and sustain provision by the private insur-
ance industry in the United States of affordable 
coverage for losses due to an act or acts of ter-
rorism; 
‘‘(B) possible actions or mechanisms to sus-
tain or supplement the ability of the insurance 
industry in the United States to cover losses re-
sulting from acts of terrorism in the event that— 
‘‘(i) such losses jeopardize the capital 
and surplus of the insurance industry in 
the United States as a whole; or 
‘‘(ii) other consequences from such acts 
occur, as determined by the Commission, 
that may significantly affect the ability of 
the insurance industry in the United States 
to independently cover such losses; and 
‘‘(C) significantly reducing the expected 
Federal role over time in any continuing Federal 
terrorism risk insurance program.
‘‘(2) EVALUATIONS.—In identifying and making 
the recommendations required under paragraph (1), 
the Commission shall specifically evaluate the utility 
and viability of TRIA Capital Reserve Funds made 
available under section 103(e)(2), any risk sharing 
mechanism created or made available under section 
103(e)(3), a Federally created or mandated reinsur-
ance facility, empowering such a facility to issue pre- 
event financing bonds, post-event financing bonds, as-
sessments, single or multiple pooling arrangements, 
and other risk sharing arrangements to accomplish, 
in whole or in part, the specified objectives, taking 
into consideration the studies and reports to the Con-
gress pursuant to subsections (h) and (i) of section 
103. 
‘‘(3) REPORT.—Not later than December 31, 
2006, the Commission shall submit a report to Con-
gress evaluating and making recommendations re-
garding whether there is a need for a Federal ter-
rorism risk insurance program and, if so, shall make 
a specific, detailed recommendation for the replace-
ment of the Program, including specific, detailed rec-
ommendations for the creation of a terrorism reinsur-
ance facility or facilities or single or multiple pooling 
arrangements, or both.
‘‘(d) EFFECT ON EXISTING PROGRAM.—For purposes 
of section 108(a), the Secretary shall make a determination 
not later than January 31, 2007, of whether the Commis-
sion has satisfied its obligations under subsection (c)(3). 
‘‘SEC. 106. PRESERVATION PROVISIONS. 
‘‘(a) STATE LAW.—Nothing in this title shall affect the 
jurisdiction or regulatory authority of the insurance com-
missioner (or any agency or office performing like func-
tions) of any State over any insurer or other person— 
‘‘(1) except as specifically provided in this title; 
and 
‘‘(2) except that— 
‘‘(A) the definition of the term ‘act of ter-
rorism’ in section 102 shall be the exclusive defi-
nition of that term for purposes of compensation 
for insured losses under this title, and shall pre-
empt any provision of State law that is incon-
sistent with that definition, to the extent that 
such provision of law would otherwise apply to 
any type of insurance covered by this title; and 
‘‘(B) during the period beginning on the 
date of enactment of this Act and for so long as 
the Program is in effect, as provided in section 
108, including authority in subsection 108(b), 
books and records of any insurer that are rel-
evant to the Program shall be provided, or 
caused to be provided, to the Secretary, upon re-
quest by the Secretary, notwithstanding any pro-
vision of the laws of any State prohibiting or 
limiting such access; and 
‘‘(3) except that with respect to coverage required 
to be made available under section 103(c)— 
‘‘(A) no laws or regulations of a State im-
posing a diligent search requirement for the 
placement of a surplus lines policy shall apply 
in connection with the purchase of such insur-
ance by an exempt commercial policyholder; and 
‘‘(B) no laws or regulations of a State, ex-
cept of the home State, imposing a diligent 
search requirement for the placement of a sur-
plus lines policy shall apply with respect to the 
placement of a multi-State surplus lines com-
mercial insurance policy, provided the contract 
of insurance insures risks in the home State. 
‘‘(b) STREAMLINED RATE AND FORM FILING.—The 
Congress intends that, by December 31, 2007, all States, 
with respect to submission of a commercial property insur-
ance policy or commercial casualty insurance policy that 
includes coverage for acts of terrorism—
‘‘(1) implement and fully utilize the System for 
Electronic Rate and Form Filing (in this section re-
ferred to as ‘SERFF’), developed by the NAIC, with-
out deviation to provide a single point for electronic 
filing of property insurance and casualty insurance 
forms for review; 
‘‘(2) update SERFF to provide a single coordi-
nated checklist for inputting the required information 
used by various States for filing reviews and desig-
nating to which States the information will be sub-
mitted; 
‘‘(3) allow the option of filing of self-certified 
commercial property insurance and commercial cas-
ualty insurance forms through a substantially nation-
wide coordinated electronic filing system that— 
‘‘(A) includes a review checklist with uni-
form nomenclature clearly establishing what is 
required under the laws of such State for a com-
pliant filing of such forms; 
‘‘(B) uses a single input system and trans-
mittal document that allows the filer to submit 
such form for review without required format de-
viations to any combination of the States par-
ticipating in the system;
‘‘(C) does not require prior approval for 
such self-certified form filing; 
‘‘(D) keeps such filings confidential until 
they are implemented, deemed implemented, or 
disapproved; and 
‘‘(E) only allows disapproval of such filings 
in writing based on specific standards that are 
published in statute, rule, or regulation. 
‘‘(c) STREAMLINED SURPLUS LINES PLACEMENT.— 
The Congress intends that, by December 31, 2007, all States 
streamline their surplus lines diligent search rules with re-
spect to the placement of surplus lines policies in any cov-
ered line of insurance that includes coverage for acts of ter-
rorism by providing for— 
‘‘(1) automatic export for exempt commercial 
purchasers, under which a surplus lines broker seek-
ing to obtain, provide, or place insurance in a State 
for an insured that qualifies as an exempt commer-
cial purchaser may procure surplus lines insurance 
from or place surplus lines insurance with any non-
admitted insurer without making a diligent search to 
determine whether the full amount or type of insur-
ance sought by the exempt commercial purchaser can 
be obtained from admitted insurers in such State.
‘‘(2) home State regulation of diligent search re-
quirements, that provides that, except as provided in 
paragraph (1), only the home State may impose a 
diligent search requirement for the placement of a 
multi-State surplus lines commercial insurance pol-
icy, provided the contract of insurance insures risks 
in the Home State. 
‘‘(d) EXISTING REINSURANCE AGREEMENTS.—Noth-
ing in this title shall be construed to alter, amend, or ex-
pand the terms of coverage under any reinsurance agree-
ment in effect on the date of enactment of this Act. The 
terms and conditions of such an agreement shall be deter-
mined by the language of that agreement.’’; and 
(2) in section 108— 
(A) by striking subsection (a) and inserting 
the following new subsection: 
‘‘(a) TERMINATION OF PROGRAM.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Program shall terminate on December 
31, 2008. 
‘‘(2) FAILURE OF COMMISSION TO SUBMIT RE-
PORT.—If the Secretary determines pursuant to sec-
tion 105(d) that the Commission on Terrorism Risk 
Insurance established under section 105 has not satis-