SEC. 105. AVAILABILITY OF COVERAGE. 
Subsection (c) of section 103 (15 U.S.C. 6701 note) is 
amended to read as follows: 
‘‘(c) MANDATORY AVAILABILITY.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), during each Program Year, each entity 
that meets the definition of an insurer under section 
102 shall make available— 
‘‘(A) in all of its property and casualty in-
surance policies, coverage for insured losses; and 
‘‘(B) property and casualty insurance cov-
erage for insured losses that does not differ mate-
rially from the terms, amounts, and other cov-
erage limitations applicable to losses arising 
from events other than acts of terrorism. 
‘‘(2) NO MANDATORY AVAILABILITY FOR SMALL 
INSURERS.—The Secretary shall provide, by regula-
tion and in consultation with State insurance regu-
latory authorities, that paragraph (1) shall not apply 
for a Program Year with respect to any small insurer 
(as such term is defined in such regulations by the 
Secretary) that, at the option of the insurer, makes a 
request for such inapplicability for such Program 
Year to the appropriate State insurance regulatory 
authority for the State in which such insurer is domi-
ciled and is determined by such State insurance regu-
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latory authority to meet such requirements for finan-
cial hardship or financial infeasibility of providing 
coverage for insured losses as the Secretary shall es-
tablish in such regulations. The insurer shall provide 
notice, in a manner satisfactory to the State insur-
ance regulatory authority, informing affected prospec-
tive and current policyholders whether such coverage 
is not provided by the insurer. This paragraph may 
not be construed to require any State insurance regu-
latory authority to undertake making determinations 
under this paragraph.’’. 
SEC. 106. TERRORISM LOSS RISK-SPREADING PREMIUMS 
AMOUNT. 
(a) IN
GENERAL.—Subparagraph (C) of section 
103(e)(7) (15 U.S.C. 6701 note) is amended— 
(1) by striking ‘‘subparagraphs (A) through (E)’’ 
and inserting ‘‘subparagraphs (A) through (F)’’; and 
(2) by striking ‘‘133 percent’’ and inserting ‘‘150 
percent’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to the Program Year for the Ter-
rorism Insurance Program established by title I of the Ter-
rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) 
that begins on January 1, 2016, and Program Years there-
after. 
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SEC. 107. INCREASE OF AGGREGATE RETENTION AMOUNT; 
MANDATORY RECOUPMENT. 
(a) IN GENERAL.—Paragraph (6) of section 103(e) (15 
U.S.C. 6701 note) is amended— 
(1) in subparagraph (D)(ii), by striking ‘‘and’’ 
at the end; 
(2) in subparagraph (E)— 
(A) in the matter preceding clause (i), by 
inserting ‘‘through the Program Year ending on 
December 31, 2015’’ before the comma; and 
(B) in clause (ii), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) for the Program Year beginning Janu-
ary 1, 2016, and each Program Year thereafter, 
the lesser of— 
‘‘(i) the amount that is equal to the 
sum of the insurer deductibles for the Pro-
gram Year for all insurers participating in 
the Program; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year.’’. 
(b) MANDATORY RECOUPMENT.— 
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(1) AMOUNT; TIMING.—Paragraph (7) of section 
103(e) (15 U.S.C. 6701 note) is amended— 
(A) by striking subparagraphs (A) and (B) 
and inserting the following new subparagraph: 
‘‘(A) MANDATORY RECOUPMENT AMOUNT.— 
For purposes of this paragraph, the mandatory 
recoupment amount for each of the periods re-
ferred to in subparagraphs (A) through (F) of 
paragraph (6) shall be equal to the lesser of— 
‘‘(i) the aggregate amount, for all in-
surers, of insured losses during such period 
that are compensated by the Federal Gov-
ernment pursuant to paragraph (1); or 
‘‘(ii) the insurance marketplace aggre-
gate retention amount under paragraph (6) 
for such period.’’; 
(B) in subparagraph (E)(i)(III), by strik-
ing ‘‘after January 1, 2012’’ and inserting ‘‘be-
fore December 31, 2014’’; and 
(C) by redesignating subparagraphs (C), 
(D), (E) (as so amended), and (F) as subpara-
graphs (B), (C), (D), and (E), respectively. 
(2) CONFORMING AMENDMENTS.—Section 103(e) 
(15 U.S.C. 6701 note) is amended in paragraph 
(7)(D)(i), as so redesignated by paragraph (1)(C) of 
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this subsection, by striking ‘‘subparagraph (C)’’ and 
inserting ‘‘subparagraph (B)’’. 
SEC. 108. TERRORISM LOSS RISK-SPREADING PREMIUM. 
(a) IN GENERAL.—Section 103(e) (15 U.S.C. 6701 
note) is amended by striking paragraph (8) and inserting 
the following new paragraph: 
‘‘(8) TERRORISM
LOSS
RISK-SPREADING
PRE-
MIUMS.— 
‘‘(A) ESTABLISHMENT.—After an act of ter-
rorism, the Secretary shall, to the extent pro-
vided in paragraph (7)(B), and may, to the ex-
tent provided in paragraph (7)(C), establish ter-
rorism loss risk-spreading premiums, which shall 
be imposed as a policyholder premium surcharge 
on property and casualty insurance policies for 
all participating insurers in force after the date 
of such establishment. 
‘‘(B) COLLECTION.—The Secretary shall 
provide for insurers to collect terrorism loss risk- 
spreading premiums and remit such amounts 
collected to the Secretary. 
‘‘(C) DETERMINATION
OF
PREMIUMS.—In 
determining the method and manner of imposing 
terrorism loss risk-spreading premiums, includ-
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