IB 
Union Calendar No. 180 
109TH CONGRESS 
1ST SESSION H. R. 4314 
[Report No. 109–327] 
To extend the applicability of the Terrorism Risk Insurance Act of 2002. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 14, 2005 
Mr. BAKER (for himself, Mr. OXLEY, Mrs. KELLY, Ms. PRYCE of Ohio, Mr. 
SESSIONS, Mr. FERGUSON, Mr. RENZI, Mr. FOSSELLA, and Mr. DAVIS 
of Kentucky) introduced the following bill; which was referred to the 
Committee on Financial Services 
DECEMBER 6, 2005 
Additional sponsor: Mr. KING of New York 
DECEMBER 6, 2005 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on November 14, 2005] 
A BILL 
To extend the applicability of the Terrorism Risk Insurance 
Act of 2002. 
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 Revision Act of 2005’’. 
SEC. 2. EXTENSION OF PROGRAM AND PROGRAM CHANGES. 
(a) IN GENERAL.—Title I of the Terrorism Risk Insur-
ance Act of 2002 (15 U.S.C. 6701 note) is amended— 
(1) by striking sections 101 through 106 and in-
serting the following new sections: 
‘‘SEC. 101. CONGRESSIONAL FINDINGS AND PURPOSE. 
‘‘(a) FINDINGS.—The Congress finds that— 
‘‘(1) the ability of businesses and individuals to 
obtain property, casualty, group life, and NBCR in-
surance at reasonable and predictable prices, in order 
to spread the risk of both routine and catastrophic 
loss, is critical to economic growth, urban develop-
ment, and the construction and maintenance of public 
and private housing, as well as to the promotion of 
United States exports and foreign trade in an in-
creasingly interconnected world; 
‘‘(2) property, casualty, and life insurance firms 
are important financial institutions, the products of 
which allow mutualization of risk and the efficient 
use of financial resources and enhance the ability of 
the economy to maintain stability, while responding 
to a variety of economic, political, environmental, 
and other risks with a minimum of disruption;
‘‘(3) the ability of the insurance industry to 
cover the unprecedented financial risks presented by 
potential acts of terrorism in the United States can 
be a major factor in the recovery from terrorist at-
tacks, while maintaining the stability of the economy; 
‘‘(4) widespread financial market uncertainties 
have arisen following the terrorist attacks of Sep-
tember 11, 2001, including the absence of information 
from which financial institutions can make statis-
tically valid estimates of the probability and cost of 
future terrorist events, and therefore the size, funding, 
and allocation of the risk of loss caused by such acts 
of terrorism; 
‘‘(5) a decision by property, casualty, group life, 
and NBCR insurers to deal with such uncertainties, 
either by terminating property, casualty, group life 
and NBCR coverage for losses arising from terrorist 
events, or by radically escalating premium coverage 
to compensate for risks of loss that are not readily 
predictable, could seriously hamper ongoing and 
planned construction, property acquisition, and other 
business projects, generate a dramatic increase in 
rents, and otherwise suppress economic activity; and 
‘‘(6) the United States Government should pro-
vide temporary financial compensation to insured
parties, contributing to the stabilization of the United 
States economy in a time of national crisis, while the 
financial services industry develops the systems, 
mechanisms, products, and programs necessary to cre-
ate a viable financial services market for private ter-
rorism risk insurance. 
‘‘(b) PURPOSE.—The purpose of this title is to estab-
lish a temporary Federal program that provides for a trans-
parent system of shared public and private compensation 
for insured losses resulting from acts of terrorism, in order 
to— 
‘‘(1) protect consumers by addressing market dis-
ruptions and ensure the continued widespread avail-
ability and affordability of property, casualty, group 
life, and NBCR insurance for terrorism risk; and 
‘‘(2) allow for a transitional period for the pri-
vate markets to stabilize, resume pricing of such in-
surance, and build capacity to absorb any future 
losses, while preserving State insurance regulation 
and consumer protections. 
‘‘SEC. 102. DEFINITIONS. 
‘‘In this title, the following definitions shall apply: 
‘‘(1) ACT OF TERRORISM.— 
‘‘(A) CERTIFICATION.—The term ‘act of ter-
rorism’ means any act that is certified by the
Secretary, in concurrence with the Secretary of 
State, and the Attorney General of the United 
States— 
‘‘(i) to be an act of terrorism; 
‘‘(ii) to be a violent act or an act that 
is dangerous to— 
‘‘(I) human life; 
‘‘(II) property; or 
‘‘(III) infrastructure; 
‘‘(iii) to have resulted in damage with-
in the United States, or outside of the 
United States in the case of— 
‘‘(I) an air carrier or vessel de-
scribed in paragraph (5)(B); or 
‘‘(II) the premises of a United 
States mission; and 
‘‘(iv) to have been committed by an in-
dividual or individuals as part of an effort 
to coerce the civilian population of the 
United States or to influence the policy or 
affect the conduct of the United States Gov-
ernment by coercion. 
‘‘(B) LIMITATION.—No act shall be certified 
by the Secretary as an act of terrorism if the act 
is committed as part of the course of a war de-