‘‘(B) EVENT LIKELY TO CAUSE LOSSES TO 
EXCEED CAP.—If any act of terrorism occurs 
that the Secretary determines is likely to cause 
estimated or actual aggregate Federal com-
pensation to be paid pursuant to paragraph (1) 
to exceed $100,000,000,000 during any Pro-
gram Year, the Secretary shall, not later than 
10 days after such act, provide notification in 
accordance with subparagraph (D)— 
‘‘(i) of such estimated or actual aggre-
gate Federal compensation to be paid; and 
‘‘(ii) that, pursuant to paragraph 
(2)(A)(ii), insurers are not required to 
make payments for excess insured losses. 
‘‘(C) EXCEEDING CAP.—If the Secretary 
determines estimated or actual aggregate Fed-
eral compensation to be paid pursuant to para-
graph (1) equals or exceeds $100,000,000,000 
during any Program Year— 
‘‘(i) the Secretary shall promptly pro-
vide notification in accordance with sub-
paragraph (D)— 
‘‘(I) of such estimated or actual 
aggregate Federal compensation to be 
paid; and
‘‘(II) that, pursuant to paragraph 
(2)(A)(ii), insurers are not required to 
make payments for excess insured 
losses unless the Congress provides 
for payments for excess insured losses 
pursuant to clause (ii) of this sub-
paragraph; and 
‘‘(ii) the Congress shall determine the 
procedures for and the source of any pay-
ments for such excess insured losses. 
‘‘(D) PARTIES NOTIFIED.—Notification is 
provided in accordance with this subparagraph 
only if notification is provided— 
‘‘(i) to the Congress, in writing; and 
‘‘(ii) to insurers, by causing such no-
tice to be published in the Federal Reg-
ister. 
‘‘(E) DETERMINATIONS.—The Secretary 
shall make determinations regarding estimated 
and actual aggregate Federal compensation to 
be paid promptly after any act of terrorism as 
may be necessary to comply with this para-
graph. 
‘‘(F) MANDATORY
DISCLOSURE
FOR
IN-
SURANCE CONTRACTS.—All policies for property
and casualty insurance and group life insurance 
shall be deemed to contain a provision to the ef-
fect that, in the case of any act of terrorism 
with respect to which there has been enacted a 
joint resolution for payment of Federal com-
pensation described in subsection (h)(2), no in-
surer that has met its applicable insurer de-
ductible and its applicable share of insured 
losses that exceed its applicable insurer deduct-
ible but are not compensated pursuant to para-
graph (1), shall be obligated to pay for any por-
tion of excess insured loss. Notwithstanding the 
preceding sentence, insurers shall include a dis-
closure in their policies detailing the maximum 
level of Government assistance and the applica-
ble insurer share. All policies for property and 
casualty insurance and group life insurance 
shall be deemed to contain, and insurers shall 
be permitted to include in their policies, a pro-
vision to the effect that, in the case of insured 
losses resulting from any act of terrorism with 
respect to which there has not been enacted a 
joint resolution for payment of Federal com-
pensation described in subsection (h)(2), no in-
surer shall be obligated to pay for any portion
of any such insured losses that exceeds its ap-
plicable insurer deductible. 
‘‘(5) FINAL
NETTING.—The Secretary shall 
have sole discretion to determine the time at which 
claims relating to any insured loss or act of ter-
rorism shall become final. 
‘‘(6) DETERMINATIONS
FINAL.—Any deter-
mination of the Secretary under this subsection shall 
be final, unless expressly provided, and shall not be 
subject to judicial review. 
‘‘(7) INSURANCE
MARKETPLACE
AGGREGATE 
RETENTION AMOUNT.—For purposes of paragraph 
(8), the insurance marketplace aggregate retention 
amount shall be— 
‘‘(A) for the period beginning on the first 
day of the Transition Period and ending on the 
last day of Program Year 1, the lesser of— 
‘‘(i) $10,000,000,000; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such pe-
riod; 
‘‘(B) for Program Year 2, the lesser of— 
‘‘(i) $12,500,000,000; and
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year; 
‘‘(C) for Program Year 3, the lesser of— 
‘‘(i) $15,000,000,000; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year; 
‘‘(D) for Program Year 4, the lesser of— 
‘‘(i) $25,000,000,000; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year; 
‘‘(E) for Program Year 5, the lesser of— 
‘‘(i) $27,500,000,000; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year; and 
‘‘(F) for each additional Program Year— 
‘‘(i) for property and casualty insur-
ance, the lesser of— 
‘‘(I) $27,500,000,000; and 
‘‘(II) the aggregate amount, for 
all such insurance, of insured losses 
during such Program Year; and
‘‘(ii) for group life insurance, the less-
er of— 
‘‘(I) $5,000,000,000; and 
‘‘(II) the aggregate amount, for 
all such insurance, of insured losses 
during such Program Year. 
‘‘(8) RECOUPMENT OF FEDERAL SHARE.— 
‘‘(A) 
MANDATORY
RECOUPMENT 
AMOUNT.—For purposes of this paragraph, the 
mandatory recoupment amount for each of the 
Program Years referred to in subparagraphs 
(A) through (F) of paragraph (7) shall be the 
difference between— 
‘‘(i) the applicable insurance market-
place aggregate retention amount under 
paragraph (7) for such Program Year; and 
‘‘(ii) the aggregate amount, for all ap-
plicable insurers (pursuant to subpara-
graph (E)), of insured losses during such 
Program Year that are not compensated 
by the Federal Government because such 
losses— 
‘‘(I) are within the insurer de-
ductible for the insurer subject to the 
losses; or
‘‘(II) are within the portion of 
losses of the insurer that exceed the 
insurer deductible, but are not com-
pensated pursuant to paragraph (1). 
‘‘(B) NO MANDATORY RECOUPMENT IF UN-
COMPENSATED
LOSSES
EXCEED
APPLICABLE 
INSURANCE
MARKETPLACE
RETENTION.—Not-
withstanding subparagraph (A), if the aggre-
gate amount of uncompensated insured losses 
referred to in clause (ii) of such subparagraph 
for any Program Year referred to in any of sub-
paragraphs (A) through (F) of paragraph (7) is 
greater than the applicable insurance market-
place aggregate retention amount under para-
graph (7) for such Program Year, the manda-
tory recoupment amount shall be $0. 
‘‘(C) MANDATORY
ESTABLISHMENT
OF 
SURCHARGES
TO
RECOUP
MANDATORY 
RECOUPMENT
AMOUNT.—The Secretary shall 
collect, for repayment of the Federal financial 
assistance provided in connection with all acts 
of terrorism (or acts of war, in the case of 
workers’ compensation) occurring during any of 
the Program Years referred to in any of sub-
paragraphs (A) through (F) of paragraph (7),
terrorism loss risk-spreading premiums in an 
amount equal to any mandatory recoupment 
amount for such Program Year. 
‘‘(D) DISCRETIONARY
RECOUPMENT
OF 
REMAINDER
OF
FINANCIAL
ASSISTANCE.—To 
the extent that the amount of Federal financial 
assistance provided exceeds any mandatory 
recoupment amount, the Secretary may— 
‘‘(i) recoup, through terrorism loss 
risk-spreading premiums, such additional 
amounts; or 
‘‘(ii) submit a report to the Congress 
identifying such amounts that the Sec-
retary believes cannot be recouped, based 
on— 
‘‘(I) the ultimate costs to tax-
payers of no additional recoupment; 
‘‘(II) the economic conditions in 
the commercial marketplace, including 
the capitalization, profitability, and 
investment returns of the insurance 
industry and the current cycle of the 
insurance markets;
‘‘(III) the affordability of com-
mercial insurance for small- and me-
dium-sized businesses; and 
‘‘(IV) such other factors as the 
Secretary considers appropriate. 
‘‘(E) SEPARATE RECOUPMENT.—‘‘The Sec-
retary shall provide that— 
‘‘(i) any recoupment under this para-
graph of amounts paid for Federal finan-
cial assistance for insured losses for prop-
erty and casualty insurance shall be ap-
plied to property and casualty insurance 
policies; and 
‘‘(ii) any recoupment under this para-
graph of amounts paid for Federal finan-
cial assistance for insured losses for group 
life insurance shall be applied to group life 
insurance policies. 
‘‘(9) POLICY SURCHARGE FOR TERRORISM LOSS 
RISK-SPREADING PREMIUMS.— 
‘‘(A) POLICYHOLDER
PREMIUM.—Subject 
to paragraph (8)(E), any amount established by 
the Secretary as a terrorism loss risk-spreading 
premium shall—
‘‘(i) be imposed as a policyholder pre-
mium surcharge on property and casualty 
insurance policies and group life insurance 
policies in force after the date of such es-
tablishment; 
‘‘(ii) begin with such period of cov-
erage during the year as the Secretary de-
termines appropriate; and 
‘‘(iii) be based on— 
‘‘(I) a percentage of the premium 
amount charged for property and cas-
ualty insurance coverage under the 
policy; and 
‘‘(II) a percentage of the amount 
at risk for group life insurance cov-
erage under the policy. 
‘‘(B) COLLECTION.—The Secretary shall 
provide for insurers to collect terrorism loss 
risk-spreading 
premiums 
and 
remit 
such 
amounts collected to the Secretary. 
‘‘(C) PERCENTAGE
LIMITATION.—A ter-
rorism loss risk-spreading premium may not ex-
ceed, on an annual basis— 
‘‘(i) with respect to property and cas-
ualty insurance, the amount equal to 3
percent of the premium charged under the 
policy; and 
‘‘(ii) with respect to group life insur-
ance, the amount equal to 0.0053 percent 
of the amount at risk under the policy. 
‘‘(D) ADJUSTMENT
FOR
URBAN
AND 
SMALLER COMMERCIAL AND RURAL AREAS AND 
DIFFERENT LINES OF INSURANCE.— 
‘‘(i) ADJUSTMENTS.—In determining 
the method and manner of imposing ter-
rorism loss risk-spreading premiums, in-
cluding the amount of such premiums, the 
Secretary shall take into consideration— 
‘‘(I) the economic impact on com-
mercial centers of urban areas, includ-
ing the effect on commercial rents and 
commercial insurance premiums, par-
ticularly rents and premiums charged 
to small businesses, and the avail-
ability of lease space and commercial 
insurance within urban areas; 
‘‘(II) the risk factors related to 
rural areas and smaller commercial 
centers, including the potential expo-
sure to loss and the likely magnitude