I 
108TH CONGRESS 
2D SESSION 
H. R. 4634
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 
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 
section 102 of the Terrorism Risk Insurance Act of 2002 
(15 U.S.C. 6701 note) is amended by adding at the end 
the following 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 sec-
tion 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 
section 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 
paragraphs, 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, 
Program 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 
period 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; and 
‘‘(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 
(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 
striking ‘‘or (C)’’ each place such term appears 
and inserting ‘‘(C), (D), or (E)’’. 
(e) GROUP LIFE INSURANCE DETERMINATION.—
Subsection (h) of section 103 of the Terrorism Risk Insur-
ance Act of 2002 (15 U.S.C. 6701 note) is amended—
(1) in paragraph (2)(B), by striking ‘‘the study 
under paragraph (1)’’ and inserting ‘‘paragraphs (1) 
and (2)’’; 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) DETERMINATION.—By June 1, 2005, the 
Secretary shall—
‘‘(A) submit a report to the Congress on 
conditions and developments in the market for 
group life insurance since the determination 
that was announced by the Secretary on August 
15, 2003, and made pursuant to this subsection 
(as in effect on such date); and 
‘‘(B) make a final determination as to the 
availability of group life insurance to both in-
surers and consumers and whether the provi-
sions of this title shall be applied, pursuant to 
paragraph (3), to providers of group life insur-
ance.’’. 
(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 inserting the following new subsection: 
‘‘(i) STUDY ON LONG-TERM SOLUTIONS.—By June 
1, 2005, the Secretary shall conduct a study and submit 
a report to the Congress on alternatives for expanding the 
availability and affordability of terrorism insurance after 
the termination of the Program that do not involve a Fed-
eral financial backstop.’’. 
(g) TERMINATION OF PROGRAM.—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’’.
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