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‘‘(E) during the period beginning on the 
date of the enactment of the Terrorism Risk In-
surance Revision and Extension Act of 2007, 
and ending on December 31, 2010, rates for 
property and casualty insurance, and group life 
insurance, covered by this title and providing 
coverage for NBCR terrorism that are filed 
with any State, to the extent of the addition of 
such coverage for NBCR terrorism and where 
such coverage was not previously required, shall 
not be subject to prior approval or waiting pe-
riod under any law of a State that would other-
wise be applicable, except that nothing in this 
title affects the ability of any State to invalidate 
a rate as inadequate or unfairly discriminatory; 
and’’; 
(5) in section 106, by adding at the end the fol-
lowing new subsection: 
‘‘(c) RULE OF CONSTRUCTION REGARDING INSURER 
COORDINATION.—Nothing in this Act shall be construed 
to prohibit, restrict, or otherwise limit an insurer from en-
tering into an arrangement with another insurer to make 
available coverage for any portion of insured losses to ful-
fill the requirements of section 103(c). The Secretary shall 
develop, in consultation with the NAIC, minimum finan-
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cial solvency standards and other standards the Secretary 
determines appropriate with respect to such arrange-
ments. Nothing in this subsection shall be construed to 
establish any legal partnership.’’; and 
(6) in section 108(c)(1), by striking ‘‘paragraph 
(4), (5), (6), (7), or (8)’’ and inserting ‘‘paragraph 
(5), (6), (7), (8), or (9)’’. 
(b) REGULATIONS ON CLAIMS ALLOCATIONS.—The 
Secretary of the Treasury shall issue the regulations re-
ferred to in subparagraph (C) of section 103(e)(2) of the 
Terrorism Risk Insurance Act of 2002, as amended by 
subsection (a)(1) of this section, and to carry out subpara-
graph (B) of such section 103(e)(2), not later than the 
expiration of the 120-day period beginning upon the date 
of the enactment of this Act. 
(c) REGULATIONS ON CERTIFICATION OF AN ACT OF 
NBCR TERRORISM.—The Secretary of the Treasury shall 
issue the regulations to carry out subparagraph (C) of sec-
tion 102(1) of the Terrorism Risk Insurance Act of 2002, 
as amended by subsection (a)(1) of this section, not later 
than the expiration of the 180-day period beginning upon 
the date of the enactment of this Act. 
(d) REGULATIONS
ON NBCR EXEMPTIONS.—The 
Secretary of the Treasury shall issue the regulations to 
carry out paragraph (4) of section 103(a) of the Terrorism 
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Risk Insurance Act of 2002, as amended by subsection 
(a)(1) of this section, not later than the expiration of the 
180-day period beginning upon the date of the enactment 
of this Act. 
SEC. 4. TERRORISM BUY-DOWN FUND. 
The Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended— 
(1) by inserting after section 106 the following 
new section: 
‘‘SEC. 106A. TERRORISM BUY-DOWN FUND. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a Terrorism Buy-Down Fund (in this section referred 
to as the ‘Fund’) that shall make available additional ter-
rorism coverage for the insured losses of insurers, which 
shall be available for purchase by insurers on a voluntary 
basis. 
‘‘(b) PURCHASE OF DEDUCTIBLE, CO-SHARE, AND 
TRIGGER BUY-DOWN COVERAGE.— 
‘‘(1) IN GENERAL.—An insurer may purchase 
deductible, co-share, and pre-trigger buy-down cov-
erage (in this section referred to as ‘buy-down cov-
erage’) through the Fund by making an election, in 
advance, to treat some or all of the premiums it has 
disclosed pursuant to section 106(b)(3) as fee 
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charges for the Program imposed by the Secretary 
and remitting such amounts to the Fund. 
‘‘(2) LIMITS.—An insurer may not purchase 
buy-down coverage in an amount greater than the 
lesser of— 
‘‘(A) the highest amount specified in sec-
tion 103(e)(1)(C); and 
‘‘(B) the insurer’s one-in-one-hundred-year 
risk exposure to acts of terrorism. 
‘‘(c) BUY-DOWN COVERAGE.—The Fund shall pro-
vide the buy-down coverage to an insurer for losses for 
acts of terrorism, without application of the insurer de-
ductible and in addition to any otherwise payable Federal 
share of compensation pursuant to section 103(e). 
‘‘(d) BUILD-UP.—The buy-down coverage that shall 
be payable to an insurer for qualifying losses shall be the 
aggregate of the insurer’s buy-down coverage premiums 
plus interest accrued on such amounts. 
‘‘(e) USE BY INSURERS.— 
‘‘(1) QUALIFYING LOSSES.—For the purpose of 
this section, qualifying losses are insured losses by 
an insurer that are not excess losses and that do not 
include amounts for which Federal financial assist-
ance pursuant to section 103(e) is received, notwith-
standing any limits otherwise applicable regarding 
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section 103(e)(1)(C) (regarding program triggers) or 
section 102(11) (regarding insurer deductibles). 
‘‘(2) USE OF BUY-DOWN COVERAGE.—An in-
surer may use any buy-down coverage payments re-
ceived under subsection (f) to satisfy— 
‘‘(A) the applicable insurer deductibles for 
the insurer; 
‘‘(B) the portion of the insurer’s losses 
that exceed the insurer deductible but are not 
compensated by the Federal share; and 
‘‘(C) the insurer’s obligations to pay for in-
sured losses if the Program trigger under sec-
tion 103(e)(1)(C) is not satisfied. 
‘‘(3) BUY-DOWN COVERAGE DOES NOT REDUCE 
FEDERAL CO-SHARE.—The receipt by an insurer of 
buy-down coverage under this section for insured 
losses shall not be considered with respect to calcu-
lating the insurer’s insured losses with respect to the 
insurer’s deductible and eligibility for Federal finan-
cial assistance pursuant to section 103(e). 
‘‘(4) INSOLVENCY.—An insurer may sell its 
rights to buy-down coverage from the Fund to an-
other insurer as part of or to avoid an insolvency or 
as part of a merger, sale, or major reorganization. 
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‘‘(f) PAYMENT
OF
BUY-DOWN
COVERAGE.—The 
Fund shall pay the qualifying losses of an insurer pur-
chasing buy-down coverage up to the amount described in 
subsection (d). 
‘‘(g) GOVERNMENT
BORROWING.—The Secretary 
may borrow the funds from the Fund to offset, in whole 
or in part, the Federal share of compensation provided 
to all insurers under the Program, except that— 
‘‘(1) the Fund shall always immediately provide 
any buy-down coverage payments required under 
subsection (f); and 
‘‘(2) any such amounts borrowed must be re-
plenished with appropriate interest. 
‘‘(h) RISK-SHARING MECHANISMS.—The Secretary 
shall establish voluntary risk-sharing mechanisms for in-
surers purchasing buy-down coverage from the Fund to 
pool their reinsurance purchases and otherwise share ter-
rorism risk. 
‘‘(i) TERMINATION.—Upon termination of the Pro-
gram under section 108, and subject to the Secretary’s 
continuing authority under section 108(b) to adjust claims 
in satisfaction under the Program, the Secretary shall pro-
vide that the Fund shall become a privately-operated mu-
tual terrorism reinsurance company owned by the insurers 
that have submitted buy-down coverage premiums in pro-
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portion to such premiums minus any buy-down coverage 
payments received.’’; and 
(2) in the table of contents in section 1(b), by 
inserting after the item relating to section 106 the 
following new item: 
‘‘Sec. 106A. Terrorism Buy-Down Fund.’’. 
SEC. 5. ANALYSIS AND STUDY. 
(a) ANALYSIS
OF MARKET CONDITIONS.—Section 
108 of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended by striking subsection (e) 
and inserting the following: 
‘‘(e) ANALYSIS OF MARKET CONDITIONS FOR TER-
RORISM RISK INSURANCE.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the NAIC, representatives of the insurance 
industry, representatives of the securities industry, 
and representatives of policyholders, shall perform 
an analysis regarding the long-term availability and 
affordability of insurance for terrorism risk in the 
private marketplace, including coverage for— 
‘‘(A) property and casualty insurance; 
‘‘(B) group life insurance; 
‘‘(C) workers’ compensation; 
‘‘(D) nuclear, biological, chemical, and ra-
diological events; and 
‘‘(E) commercial real estate. 
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‘‘(2) BIENNIAL REPORTS.—The Secretary shall 
submit biennial reports to the Committee on Finan-
cial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate, on its findings pursuant to the 
analysis conducted under paragraph (1). The first 
such report shall be submitted not later than the ex-
piration of the 24-month period beginning on the 
date of the enactment of the Terrorism Risk Insur-
ance Revision and Extension Act of 2007. 
‘‘(3) TESTIMONY.—Upon submission of each bi-
ennial report under paragraph (2), the Secretary 
shall provide oral testimony to the Committee on Fi-
nancial Services of the House of Representatives and 
Committee on Banking, Housing, and Urban Affairs 
of the United States Senate regarding the report 
and the analysis under this subsection for which the 
report is submitted.’’. 
(b) COMMISSION ON TERRORISM RISK INSURANCE.— 
Title I of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended— 
(1) by adding at the end the following new sec-
tion: 
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‘‘SEC. 109. COMMISSION ON TERRORISM RISK INSURANCE. 
‘‘(a) ESTABLISHMENT.—There is hereby established 
the Commission on Terrorism Risk Insurance (in this sec-
tion referred to as the ‘Commission’). 
‘‘(b) MEMBERSHIP.— 
‘‘(1) The Commission shall consist of 21 mem-
bers, as follows: 
‘‘(A) The Secretary of the Treasury or the 
designee of the Secretary. 
‘‘(B) One member who is a State insur-
ance commissioner, designated by the NAIC. 
‘‘(C) 15 members, who shall be appointed 
by the President, who shall include— 
‘‘(i) a representative of group life in-
surers; 
‘‘(ii) a representative of property and 
casualty insurers with direct earned pre-
mium of $1,000,000,000 or less; 
‘‘(iii) a representative of property and 
casualty insurers with direct earned pre-
mium of more than $1,000,000,000; 
‘‘(iv) a representative of multiline in-
surers; 
‘‘(v) a representative of independent 
insurance agents; 
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‘‘(vi) a representative of insurance 
brokers; 
‘‘(vii) a policyholder representative; 
‘‘(viii) a representative of the sur-
vivors of the victims of the attacks of Sep-
tember 11, 2001; 
‘‘(ix) a representative of the reinsur-
ance industry; 
‘‘(x) a representative of workers’ com-
pensation insurers; 
‘‘(xi) a representative from the com-
mercial mortgage-backed securities indus-
try; 
‘‘(xii) a representative from a nation-
ally recognized statistical rating organiza-
tion; 
‘‘(xiii) a real estate developer; 
‘‘(xiv) a representative of workers’ 
compensation insurers created by State 
legislatures, selected in consultation with 
the American Association of State Com-
pensation Insurance Funds from among its 
members; and 
‘‘(xv) a representative from the com-
mercial real estate brokerage industry or 
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the commercial property management in-
dustry. 
‘‘(D) Four members, who shall serve as li-
aisons to the Congress, who shall include two 
members jointly selected by the Chairman and 
Ranking Member of the Committee on Finan-
cial Services of the House of Representatives 
and two members jointly selected by the Chair-
man and Ranking Member of the Committee on 
Banking, Housing, and Urban Affairs of the 
Senate. 
‘‘(2) SECRETARY.—The Program Director of 
the Terrorism Risk Insurance Act of the Depart-
ment of the Treasury 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; 
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‘‘(B) possible actions or mechanisms to 
sustain or supplement the ability of the insur-
ance industry in the United States to cover 
losses resulting 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 Commis-
sion, that may significantly affect the abil-
ity of the insurance industry in the United 
States to cover such losses independently; 
and 
‘‘(C) possible actions to significantly re-
duce the Federal role in covering losses result-
ing from acts of terrorism. 
‘‘(2) EVALUATIONS.—In identifying and mak-
ing the recommendations required under paragraph 
(1), the Commission shall specifically evaluate the 
utility and viability of proposals aimed at improving 
the availability of insurance against terrorism risk in 
the private marketplace. 
‘‘(3) INITIAL MEETING.—The Commission shall 
hold its first meeting during the 3-month period that 
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