I 
110TH CONGRESS 
1ST SESSION H. R. 4721 
To amend the Terrorism Risk Insurance Act of 2002 to temporarily reduce 
the insurer deductibles for insurers sustaining insured losses from large 
terrorism events. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 17, 2007 
Mr. ACKERMAN introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Terrorism Risk Insurance Act of 2002 to 
temporarily reduce the insurer deductibles for insurers 
sustaining insured losses from large terrorism events. 
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 Risk Insur-
ance Improvement Act of 2007’’. 
SEC. 2. LARGE EVENT RESET. 
The Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended— 
(1) in section 102(7)— 
VerDate Aug 31 2005 
22:26 Dec 18, 2007
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4721.IH
H4721
pwalker on PROD1PC71 with BILLS
(A) in subparagraph (F), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (G), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(H) Notwithstanding subparagraph (f)(i), 
if aggregate industry insured losses resulting 
from a certified act of terrorism exceed 
$1,000,000,000, for any insurer that sustains 
insured losses resulting from such act of ter-
rorism, the value of such insurer’s direct earned 
premiums over the calendar year immediately 
preceding the program year, multiplied by a 
percentage, which— 
‘‘(i) for the Program Year consisting 
of calendar year 2008 shall be 5 percent; 
and 
‘‘(ii) for each Program Year there-
after, shall be 50 basis points greater than 
the percentage applicable to the preceding 
Program Year, except that if an act of ter-
rorism occurs during any such Program 
Year that results in aggregate industry in-
sured losses exceeding $1,000,000,000, the 
VerDate Aug 31 2005 
22:26 Dec 18, 2007
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4721.IH
H4721
pwalker on PROD1PC71 with BILLS
percentage for the succeeding Program 
Year shall be 5 percent and the increase 
under this clause shall apply to Program 
Years thereafter; 
except that for purposes of determining under 
this subparagraph whether aggregate industry 
insured losses exceed $1,000,000,000, the Sec-
retary may combine insured losses resulting 
from two or more certified acts of terrorism oc-
curring during such Program Year in the same 
geographic area (with such area determined by 
the Secretary), in which case such insurer shall 
be permitted to combine insured losses resulting 
from such acts of terrorism for purposes of sat-
isfying its insurer deductible under this sub-
paragraph; and except that the insurer deduct-
ible under this subparagraph shall apply only 
with respect to compensation of insured losses 
resulting from such certified act, or combined 
certified acts, and that for purposes of com-
pensation of any other insured losses occurring 
in the same Program Year, the insurer deduct-
ible determined under subparagraph (F) shall 
apply.’’; and 
(2) in section 103(e)(1)(b)— 
VerDate Aug 31 2005 
22:26 Dec 18, 2007
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4721.IH
H4721
pwalker on PROD1PC71 with BILLS
(A) in clause (ii), by striking the period at 
the end and inserting a semicolon; and 
(B) by adding after and below clause (ii) 
the following: 
‘‘except that if a certified act of terrorism occurs for 
which resulting aggregate industry insured losses exceed 
$1,000,000,000, the applicable amount for any subsequent 
certified act of terrorism shall be the amount specified in 
section 102(1)(B)(ii).’’. 
Æ 
VerDate Aug 31 2005 
22:26 Dec 18, 2007
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H4721.IH
H4721
pwalker on PROD1PC71 with BILLS