losses resulting from NBCR terrorism, coverage for 
losses resulting from NBCR terrorism that may differ 
materially from the terms, amounts, and other cov-
erage limitations applicable to losses arising from 
events other than NBCR terrorism; and 
‘‘(3) shall make available, in any life insurance 
policy, coverage that does not preclude future lawful 
foreign travel by the person insured, and shall not 
charge a premium for such coverage that is excessive 
and not based on a good faith actuarial analysis. 
‘‘(d) STATE RESIDUAL MARKET INSURANCE ENTI-
TIES.— 
‘‘(1) IN
GENERAL.—The Secretary shall issue 
regulations, as soon as practicable after the date of 
enactment of this Act, that apply the provisions of 
this title to State residual market insurance entities, 
State workers’ compensation funds, and State work-
ers’ compensation reinsurance pools. 
‘‘(2) TREATMENT
OF
CERTAIN
ENTITIES.—For 
purposes of the regulations issued pursuant to para-
graph (1)— 
‘‘(A) a State residual market insurance en-
tity that does not share its profits and losses 
with private sector insurers shall be treated as a 
separate insurer; and
‘‘(B) a State residual market insurance en-
tity that shares its profits and losses with pri-
vate sector insurers shall not be treated as a sep-
arate insurer, and shall report to each private 
sector insurance participant its share of the in-
sured losses of the entity, which shall be included 
in each private sector insurer’s insured losses. 
‘‘(3) TREATMENT OF PARTICIPATION IN CERTAIN 
ENTITIES.—Any insurer that participates in sharing 
profits and losses of a State residual market insur-
ance entity shall include in its calculations of pre-
miums any premiums distributed to the insurer by 
the State residual market insurance entity. 
‘‘(e) INSURED LOSS SHARED COMPENSATION.— 
‘‘(1) FEDERAL SHARE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the Federal share of com-
pensation under the Program to be paid by the 
Secretary for insured losses of an insurer during 
each Program Year shall be equal to that portion 
of the amount of such insured losses for each cov-
ered line of insurance that exceeds the applicable 
insurer deductible required to be paid during 
such Program Year, multiplied by a percentage
based on aggregate industry insured losses for a 
Program Year, which shall be as follows: 
‘‘(i) 80 percent of the aggregate indus-
try 
insured 
losses 
of 
less 
than 
$10,000,000,000; 
‘‘(ii) 85 percent of the aggregate indus-
try insured losses between $10,000,000,000 
and $20,000,000,000; 
‘‘(iii) 90 percent of the aggregate in-
dustry 
insured 
losses 
between 
$20,000,000,000 and $40,000,000,000; and 
‘‘(iv) 95 percent of the aggregate indus-
try insured losses above industry losses 
above $40,000,000,000; 
and shall be prorated by insurer based on each 
insurer’s percentage of the aggregate industry in-
sured losses for that Program Year. 
‘‘(B) PROGRAM
TRIGGER.—No compensa-
tion shall be paid by the Secretary under sub-
section (a) unless the aggregate industry insured 
losses exceed— 
‘‘(i) $50,000,000, with respect to in-
sured losses occurring in Program Year 4; 
‘‘(ii) $100,000,000, with respect to in-
sured losses occurring in the Additional
Program Year beginning on January 1, 
2007; 
‘‘(iii) with respect to each Additional 
Program Year thereafter that coverage is 
provided under the Program, the amount 
that is equal to the sum of (I) the dollar 
amount applicable under this subparagraph 
for the Program Year preceding such Addi-
tional Program Year, and (II) $50,000,000; 
except that the applicable Program Trigger 
amount shall be reduced by $10,000,000 for each 
$1,000,000,000 in insured losses occurring in 
any preceding year, provided that the Program 
Trigger shall not be reduced below $50,000,000 
for any year. 
‘‘(C) PROHIBITION
ON
DUPLICATIVE
COM-
PENSATION.—The Federal share of compensation 
for insured losses under the Program shall be re-
duced by the amount of compensation provided 
by the Federal Government to any person under 
any other Federal program for those insured 
losses. 
‘‘(2) TRIA CAPITAL RESERVE FUNDS.— 
‘‘(A) ESTABLISHMENT.—Any insurer may 
establish a TRIA Capital Reserve Fund (in this
section referred to as a ‘CRF’) in which it may 
hold funds in a fiduciary capacity on behalf of 
the Secretary. 
‘‘(B) FUNDING.—An insurer may fund a 
CRF by making an election, in advance, to treat 
some or all of the premiums it has disclosed pur-
suant to section 103(b)(2) as TRIA program fee 
charges imposed by the Secretary. Any such pre-
miums for which such an election has been made 
must be maintained in segregated accounts in a 
fiduciary capacity on behalf of the Secretary. 
Such funds may be invested in any otherwise le-
gally permissible manner but all interest, divi-
dends, and capital accumulations also shall be 
retained in such segregated accounts on behalf of 
the Secretary. 
‘‘(C) USE.—Funds from a CRF shall be col-
lected and used by the Secretary to offset, in 
whole or in part, the Federal share of compensa-
tion provided to all insurers under the Program 
as provided for in paragraph (1), except that an 
insurer may first use the funds in a CRF of that 
insurer to satisfy any one or more of the fol-
lowing: