I 
110TH CONGRESS 
1ST SESSION H. R. 2761 
To extend the Terrorism Insurance Program of the Department of the 
Treasury, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 18, 2007 
Mr. CAPUANO (for himself, Mrs. MALONEY of New York, Mr. ACKERMAN, Mr. 
MEEKS of New York, Mrs. MCCARTHY of New York, Mr. CROWLEY, Mr. 
ISRAEL, Mr. KING of New York, Mr. GUTIERREZ, Mr. WATT, Mr. SHER-
MAN, Mr. LYNCH, Mr. SCOTT of Georgia, Mr. AL GREEN of Texas, Mr. 
CLEAVER, Mr. LINCOLN DAVIS of Tennessee, Mr. SIRES, Mr. MAHONEY 
of Florida, Mr. MURPHY of Connecticut, Mr. WEXLER, Mr. BOREN, Mr. 
FRANK of Massachusetts, Mr. HODES, and Mr. SHAYS) 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, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Terrorism Risk Insurance Revision and Extension Act of 
2007’’. 
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(b) REFERENCES.—Except as otherwise expressly 
provided in this Act, wherever in this Act an amendment 
or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision 
of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 
6701 note). 
SEC. 2. FINDINGS AND PURPOSE. 
Section 101 is amended— 
(1) in subsection (a)— 
(A) in paragraph (5), by striking ‘‘and’’ at 
the end; 
(B) by redesignating paragraph (6) as 
paragraph (12); and 
(C) by inserting after paragraph (5) the 
following new paragraphs: 
‘‘(6) the United States Government should co-
ordinate with insurers to provide financial com-
pensation to insured parties for losses from acts of 
terrorism, contributing to the stabilization of the 
United States economy in a time of national crisis, 
and periodically assess the ability of the financial 
services industry to develop the systems, mecha-
nisms, products, and programs necessary to create a 
viable financial services market for private terrorism 
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risk insurance that will lessen the financial partici-
pation of the United States Government; 
‘‘(7) in addition to a terrorist attack on the 
United States using conventional means or weapons, 
there is and continues to be a potential threat of a 
terrorist attack involving the use of unconventional 
means or weapons, such as nuclear, biological, chem-
ical, or radiological agents; 
‘‘(8) as nuclear, biological, chemical or radio-
logical acts of terrorism (known as NBCR terrorism) 
present a threat of loss of life, injury, disease and 
property damage potentially unparalleled in scope 
and complexity by any prior event, natural or man- 
made, the Federal Government’s responsibility in 
providing for and preserving national economic secu-
rity calls for a strong Federal role in ensuring finan-
cial compensation and economic recovery in the 
event of such an attack; 
‘‘(9) a report issued by the Government Ac-
countability Office in September 2006 concluded 
that ‘any purely market-driven expansion of cov-
erage’ for NBCR terrorism risk is ‘highly unlikely in 
the foreseeable future’ and the September 2006 re-
port from the President’s Working Group on Finan-
cial Markets concluded that reinsurance for NBCR 
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terrorist events is virtually unavailable and that 
‘[g]iven the general reluctance of insurance compa-
nies to provide coverage for these types of risks, 
there may be little potential for future market devel-
opment’; 
‘‘(10) group life insurance companies are im-
portant financial institutions whose products make 
life insurance coverage affordable for millions of 
Americans and often serve as their only life insur-
ance benefit; 
‘‘(11) the group life insurance industry, in the 
event of a severe act of terrorism, is vulnerable to 
insolvency because high concentrations of covered 
employees work in the same locations, because pri-
mary life insurers do not exclude conventional and 
NBCR terrorism risks while most catastrophic rein-
surance does exclude such terrorism risks, and be-
cause a large-scale loss of life would fall outside of 
actuarial expectations of death; and’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘for ter-
rorism risk’’ and inserting the following: ‘‘and 
group life insurance for all types of terrorism 
risk, including conventional terrorism risk and 
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nuclear, biological, chemical, and radiological 
terrorism risk’’; and 
(B) in paragraph (2)— 
(i) by inserting before the period at 
the end the following: ‘‘(unless otherwise 
preempted by this Act)’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) provide finite liability limits for terrorism 
insurance losses for insurers and the United States 
Government.’’. 
SEC. 3. 10-YEAR EXTENSION OF PROGRAM. 
(a) TERMINATION DATE.—Section 108(a) is amend-
ed by striking ‘‘December 31, 2007’’ and inserting ‘‘De-
cember 31, 2017’’. 
(b) ADDITIONAL PROGRAM YEAR.—Paragraph (11) 
of section 102 is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(G) ADDITIONAL
PROGRAM
YEAR.—The 
term ‘additional Program Year’ means any ad-
ditional one-year period after Program Year 5 
during which the Program is in effect, which 
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period shall begin on January 1 and end on De-
cember 31 of the same calendar year.’’. 
(c) INSURER
DEDUCTIBLE.—Section 102(7) is 
amended— 
(1) in subparagraph (F), by striking ‘‘and’’ at 
the end; and 
(2) in subparagraph (G)— 
(A) by striking ‘‘(F)’’ and inserting ‘‘(G)’’; 
and 
(B) by redesignating such subparagraph as 
subparagraph (H); and 
(3) by inserting after subparagraph (F) the fol-
lowing: 
‘‘(G) for each additional Program Year— 
‘‘(i) with respect to property and cas-
ualty insurance, the value of an insurer’s 
direct earned premiums over the calendar 
year immediately preceding such Program 
Year, multiplied by 20 percent; and’’. 
(d) INSURED LOSS SHARED COMPENSATION.—Sub-
section (e) of section 103 is amended— 
(1) in paragraph (2)(A), by striking ‘‘the pe-
riod’’ and all that follows through ‘‘2 through 5’’ 
and inserting ‘‘any additional Program Year’’; 
(2) in paragraph (6)— 
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(A) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(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’’; and 
(3) in paragraph (7), by striking ‘‘period’’ and 
‘‘periods’’ each place either such term appears and 
inserting ‘‘Program Year’’ and ‘‘Program Years’’, 
respectively. 
SEC. 4. COVERAGE OF DOMESTIC TERRORISM. 
Clause (iv) of section 102(1)(A) is amended by strik-
ing ‘‘acting on behalf of any foreign person or foreign in-
terest,’’. 
SEC. 5. ADJUSTMENT OF PROGRAM TRIGGER. 
Section 103(e)(1) is amended— 
(1) in subparagraph (B), by striking clauses (i) 
and (ii) and inserting the following new clause: 
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‘‘(i) $50,000,000, with respect to such 
insured losses occurring in any additional 
Program Year; or’’; and 
(2) by redesignating subparagraphs (B) and 
(C) as subparagraphs (C) and (D), respectively. 
SEC. 6. DEFINITIONS. 
Section 102 is amended— 
(1) in paragraph (3)(C), by inserting before the 
period at the end the following: ‘‘; except that for 
purposes of any proceeding under this subparagraph, 
there shall be a presumption that any entity which 
directly or indirectly owns, controls, or has power to 
vote less than 5 percent of any class of voting secu-
rities of another entity does not have control over 
that entity’’; 
(2) in paragraph (4), by striking ‘‘paragraph 
(5)’’ and inserting ‘‘paragraph (8)’’; 
(3) by redesignating paragraphs (10) through 
(16) as paragraphs (15) through (21), respectively; 
(4) by inserting after paragraph (9) the fol-
lowing new paragraph: 
‘‘(14) PREVIOUSLY IMPACTED AREA.— 
‘‘(A) IN
GENERAL.—The term ‘impacted 
area’ means a geographic area that, after an 
act of terrorism, the Secretary determines has 
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suffered a substantial and direct economic im-
pact as a result of such act of terrorism. In des-
ignating such an area the Secretary shall use 
postal zip codes, census tracts, or such other 
geographic determinates as the Secretary finds 
appropriate to provide a clear delineation of the 
impacted area. 
‘‘(B) PREVIOUS
ACTS
OF
TERRORISM.— 
Notwithstanding subparagraph (A), the Sec-
retary shall designate as an impacted area any 
area within the United States that has, during 
the 15-year period ending upon the date of the 
enactment of the Terrorism Risk Insurance Re-
vision and Extension Act of 2007, been subject 
to an act of violence that— 
‘‘(i) would have been an act of ter-
rorism for purposes of this Act if this Act 
had been in effect at the time of such act 
of violence; and 
‘‘(ii) resulted in insured losses (as 
such term is defined in this Act) of at least 
$1,000,000,000 at the time of the event. 
Any such previous acts of violence shall be con-
sidered acts of terrorism for purposes of para-
graph (11) of this section (relating to insurer 
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deductible) and section 103(e)(1)(C) (relating 
to program trigger).’’; 
(5) by redesignating paragraph (9) as para-
graph (13); 
(6) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(12) NBCR TERRORISM.—The term ‘NBCR 
terrorism’ means an act of terrorism that involves 
nuclear, biological, chemical, or radiological reac-
tions, releases, or contaminations, to the extent any 
insured losses are caused by any such reactions, re-
leases, or contaminations.’’; 
(7) by redesignating paragraphs (5) through 
(8) as paragraphs (8) through (11), respectively; 
(8) by inserting after paragraph (4) the fol-
lowing new paragraphs: 
‘‘(6) EXCESS INSURED LOSS.—The term ‘excess 
insured loss’ means, with respect to a Program 
Year, any portion of the amount of insured losses 
during such Program Year that exceeds the cap on 
annual liability under section 103(e)(2)(A). 
‘‘(7) GROUP
LIFE
INSURANCE.—The term 
‘group life insurance’ means an insurance contract 
that provides life insurance coverage, including term 
life insurance coverage, group universal life insur-
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ance coverage, group variable universal life insur-
ance coverage and accidental death coverage, or a 
combination thereof, for a number of individuals 
under a single contract, on the basis of a group se-
lection of risks, but does not include ‘Corporate 
Owned Life Insurance’ or ‘Business Owned Life In-
surance,’ each as defined under the Internal Rev-
enue Code of 1986, or any similar product.’’; 
(9) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; and 
(10) by inserting after paragraph (2) the fol-
lowing new paragraph. 
‘‘(3) AMOUNT AT RISK.—The term ‘amount at 
risk’ means, with respect to group life insurance, the 
death benefit less any cash value.’’. 
SEC. 7. COVERAGE OF GROUP LIFE INSURANCE. 
(a) DEFINITIONS.—Section 102, as amended by the 
preceding provisions of this Act, is further amended— 
(1) in paragraph (1)(B)(ii), by inserting ‘‘and 
group life insurance’’ before ‘‘losses’’; 
(2) in paragraph (8) (relating to insured loss), 
as so redesignated by section 6 of this Act, in the 
matter preceding subparagraph (A)— 
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(A) by inserting ‘‘or group life insurance 
as limited to the amount at risk,’’ after ‘‘prop-
erty and casualty insurance’’; and 
(B) by inserting a comma after ‘‘insurer’’; 
(3) in paragraph (9) (relating to insurer), as so 
redesignated by section 6 of this Act— 
(A) in subparagraph (A)(i), by inserting ‘‘, 
or group life insurance,’’ after ‘‘excess insur-
ance’’; and 
(B) in subparagraph (B), by inserting ‘‘or, 
in the case of group life insurance, that receives 
premiums,’’ after ‘‘insurance coverage,’’; 
(4) in paragraph (10) (relating to insurer de-
ductible), as so redesignated by section 6 of this 
Act— 
(A) in subparagraph (G), as added by sec-
tion 3(c)(3) of this Act, by adding at the end 
the following new clause: 
‘‘(ii) with respect to group life insur-
ance, the value of an insurer’s amount at 
risk for a covered line of insurance over 
the calendar year immediately preceding 
such Program Year, multiplied by 0.0351 
percent;’’; and 
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(B) in subparagraph (H), as so redesig-
nated by section 3(c)(2) of this Act— 
(i) by inserting ‘‘for property and cas-
ualty insurance, and such portion of the 
amount at risk for group life insurance,’’ 
after ‘‘such portion of the direct earned 
premiums’’; and 
(ii) by striking the period at the end 
and inserting ‘‘and amount at risk;’’. 
(b) 
SEPARATE
RETENTION
POOL.—Section 
103(e)(6) is amended— 
(1) in subparagraph (D)(ii), by striking ‘‘and’’ 
at the end; and 
(2) in subparagraph (F), as added by section 
3(d)(2)(C) of this Act, by adding at the end the fol-
lowing new clause: 
‘‘(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.’’. 
(c) SEPARATE RECOUPMENT.—Section 103(e)(7) is 
amended— 
(1) in subparagraph (A)— 
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(A) in the matter preceding clause (i), by 
striking ‘‘(E)’’ and inserting ‘‘(F)’’; 
(B) in clause (i), by inserting ‘‘applicable’’ 
before ‘‘insurance’’; 
(C) in clause (ii), by striking ‘‘all insurers’’ 
and inserting ‘‘all applicable insurers (pursuant 
to subparagraph (E))’’; 
(2) in subparagraph (B)— 
(A) in the heading, by inserting ‘‘APPLICA-
BLE’’ before ‘‘INSURANCE’’; 
(B) by striking ‘‘(E)’’ and inserting ‘‘(F)’’; 
and 
(C) by inserting ‘‘applicable’’ before ‘‘in-
surance’’; 
(3) in subparagraph (C), by striking ‘‘(E)’’ and 
inserting ‘‘(F)’’; and 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(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 made 
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from an insurer, with respect to its prop-
erty and casualty insurance; 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 made from an in-
surer, with respect to its group life insur-
ance.’’. 
(d) POLICY SURCHARGE FOR TERRORISM LOSS RISK- 
SPREADING PREMIUMS.—Section 103(e)(8) is amended— 
(1) in subparagraph (A)— 
(A) in the matter preceding clause (i), by 
striking ‘‘Any’’ and inserting ‘‘Subject to sub-
paragraph (E), any’’; 
(B) in clause (i), by inserting ‘‘, and group 
life insurance policies,’’ after ‘‘policies’’; and 
(C) by striking clause (iii) and inserting 
the following new clause: 
‘‘(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 covered lines of group life 
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insurance coverage under the policy.’’; 
and 
(2) in subparagraph (C)— 
(A) by striking the comma after ‘‘an an-
nual basis’’ and all that follows through the end 
of the subparagraph and inserting a 2-em dash; 
and 
(B) by adding at the end the following: 
‘‘(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 for covered lines 
under the policy.’’. 
SEC. 8. COVERAGE FOR NUCLEAR, BIOLOGICAL, CHEMICAL, 
AND RADIOLOGICAL EVENTS. 
(a) CERTIFICATION.—Section 102(1) is amended— 
(1) in subparagraph (C), by inserting ‘‘or as an 
act of NBCR terrorism’’ after ‘‘act of terrorism’’; 
(2) in subparagraph (D), by inserting ‘‘, includ-
ing an act of NBCR terrorism,’’ after ‘‘act of ter-
rorism’’; 
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(3) by redesignating subparagraphs (C) and 
(D) as subparagraphs (D) and (E), respectively; and 
(4) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) CERTIFICATION
OF
ACTS
OF
NBCR 
TERRORISM.—Upon certification of an act of 
terrorism, the Secretary, in concurrence with 
the Secretary of State, and the Attorney Gen-
eral of the United States, shall determine 
whether the act of terrorism meets the defini-
tion of NBCR terrorism in this section. If such 
determination is that the act does meet such 
definition, the Secretary shall specifically certify 
such act as an act of NBCR terrorism.’’. 
(b) MANDATORY AVAILABILITY.—Section 103(c) is 
amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘property and casualty in-
surance policies’’ and inserting ‘‘insurance poli-
cies for covered lines’’; and 
(B) by striking ‘‘; and’’ and inserting the 
following: ‘‘, except for losses resulting from an 
act of NBCR terrorism;’’; 
(2) in paragraph (2)— 
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(A) by striking ‘‘property and casualty’’ 
and inserting ‘‘, for covered lines,’’; 
(B) by striking the period at the end and 
inserting a semicolon; and 
(3) by adding after paragraph (2) the following 
new paragraph: 
‘‘(3) shall make available, to any person who 
elects coverage under paragraph (1) for a covered 
line and notwithstanding any nuclear hazard or pol-
lution exclusion in a policy that otherwise would be 
applicable, coverage for such covered line for losses 
resulting from NBCR terrorism; and’’. 
(c) INSURER DEDUCTIBLE.—Paragraph (10) of sec-
tion 102, as so redesignated by the preceding provisions 
of this Act, is amended by adding at the end the following 
new subparagraph: 
‘‘(I) notwithstanding subparagraphs (A) 
through (H), in the case of any act of NBCR 
terrorism, for any additional Program Year— 
‘‘(i) with respect to property and cas-
ualty insurance, the value of an insurer’s 
direct earned premiums over the calendar 
year immediately preceding such Program 
Year, multiplied by 7.5 percent; and 
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‘‘(ii) with respect to group life insur-
ance, the value of an insurer’s amount at 
risk for a covered line of insurance over 
the calendar year immediately preceding 
such Program Year, multiplied by 0.0132 
percent; and’’. 
(d) RATE AND FORM FILINGS.—Section 106(a)(2) is 
amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(3) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) during the period beginning on the 
date of the enactment of the Terrorism Risk In-
surance Revision and Extension Act of 2007 
and ending on December 31, 2008, rates and 
forms for property and casualty insurance cov-
ered by this title and providing coverage for 
NBCR terrorism that are filed with any State 
shall not be subject to prior approval or a wait-
ing period under any law of a State that would 
otherwise be applicable, except that nothing in 
this title affects the ability of any State to in-
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validate a rate as excessive, inadequate, or un-
fairly discriminatory, and, with respect to 
forms, where a State has prior approval author-
ity, it shall apply to allow subsequent review of 
such forms; and’’. 
SEC. 9. INSURED LOSS SHARED COMPENSATION. 
(a) INSURER COPAYMENT; FEDERAL SHARE
OF 
COMPENSATION.—Section 103(e)(1) is amended by strik-
ing subparagraph (A) and inserting the following new sub-
paragraphs: 
‘‘(A) CONVENTIONAL TERRORISM.—Except 
as provided in subparagraph (B), the Federal 
share of compensation under the Program to be 
paid by the Secretary for insured losses of an 
insurer during any additional Program Year 
shall be equal to the sum of— 
‘‘(i) 85 percent of that portion of the 
amount of such insured losses that— 
‘‘(I) exceeds the applicable in-
surer deductible required to be paid 
during such Program Year; and 
‘‘(II) based upon pro rata deter-
minations 
pursuant 
to 
paragraph 
(2)(B), does not contribute to aggre-
gate industry insured losses during 
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such 
Program 
Year 
exceeding 
$100,000,000,000; and 
‘‘(ii) 100 percent of the insured losses 
of the insurer that, based upon pro rata 
determinations pursuant to paragraph 
(2)(B), contributes to aggregate industry 
insured losses during such Program Year 
exceeding $100,000,000,000, up to the 
limit under paragraph (2)(A). 
‘‘(B) NBCR TERRORISM.— 
‘‘(i) AMOUNT
OF
COMPENSATION.— 
The Federal share of compensation under 
the Program to be paid by the Secretary 
for insured losses of an insurer resulting 
from NBCR terrorism during any addi-
tional Program Year shall be equal to the 
sum of— 
‘‘(I) the amount of qualified 
NBCR losses (as such term is defined 
in clause (ii)) of the insurer, multi-
plied by a percentage based on the ag-
gregate 
industry 
qualified 
NBCR 
losses for the Program Year, which 
percentage shall be— 
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‘‘(aa) 85 percent of such ag-
gregate industry qualified NBCR 
losses 
of 
less 
than 
$10,000,000,000; 
‘‘(bb) 87.5 percent of such 
aggregate 
industry 
qualified 
NBCR 
losses 
between 
$10,000,000,000 
and 
$20,000,000,000; 
‘‘(cc) 90 percent of such ag-
gregate industry qualified NBCR 
losses between $20,000,000,000 
and $40,000,000,000; 
‘‘(dd) 92.5 percent of such 
aggregate 
industry 
qualified 
NBCR 
losses 
of 
between 
$40,000,000,000 
and 
$60,000,000,000; and 
‘‘(ee) 95 percent of such ag-
gregate industry qualified NBCR 
losses 
of 
more 
than 
$60,000,000,000; 
and shall be prorated per insurer 
based on each insurer’s percentage of 
the 
aggregate 
industry 
qualified 
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NBCR losses for such additional Pro-
gram Year; and 
‘‘(II) 100 percent of the insured 
losses of the insurer resulting from 
NBCR terrorism that, based upon pro 
rata determinations pursuant to para-
graph (2)(B), contributes to aggregate 
industry insured losses during such 
Program 
Year 
exceeding 
$100,000,000,000, up to the limit 
under paragraph (2)(A). 
‘‘(ii) QUALIFIED NBCR LOSSES.—For 
purposes of this subparagraph, the term 
‘qualified NBCR losses’ means, with re-
spect to insured losses of an insurer result-
ing from NBCR terrorism during an addi-
tional Program Year, that portion of the 
amount of such insured losses that— 
‘‘(I) exceeds the applicable in-
surer deductible required to be paid 
during such Program Year; and 
‘‘(II) based upon pro rata deter-
minations 
pursuant 
to 
paragraph 
(2)(B), does not contribute to aggre-
gate industry insured losses during 
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such 
Program 
Year 
exceeding 
$100,000,000,000.’’. 
(b) CAP ON ANNUAL LIABILITY; CLAIMS ALLOCA-
TIONS.— 
(1) IN GENERAL.—Section 103(e)(2) is amend-
ed— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause 
(i)— 
(I) by inserting after ‘‘State 
law,’’ the following: ‘‘including any 
State workers’ compensation or other 
compulsory insurance law,’’; and 
(II) by striking ‘‘aggregate in-
sured losses exceed’’ and inserting 
‘‘aggregate amount of the Federal 
share of compensation to be paid to 
all insurers pursuant to paragraph 
(1)(A) exceeds’’; 
(ii) in clause (i), by striking ‘‘such 
losses that’’ and inserting ‘‘the aggregate 
insured losses during such Program Year 
for which the Federal share’’; and 
(iii) in clause (ii), by striking ‘‘that 
amount that’’ and inserting ‘‘the aggregate 
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insured losses during such Program Year 
for which the Federal share’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(C) CLAIMS
ALLOCATIONS.—The Sec-
retary shall, by regulation, provide for insurers 
to allocate claims payments for insured losses 
under applicable insurance policies in any case 
described in subparagraph (A). Such regula-
tions shall include provisions for payment, for 
the purpose of addressing emergency needs of 
applicable persons affected by an act of ter-
rorism, of a portion of claims for insured losses 
promptly upon filing of such claims.’’. 
(2) REGULATIONS.—The Secretary of the 
Treasury shall issue the regulations referred to in 
the amendment made by paragraph (1)(B), and to 
carry out section 103(e)(2)(B) of the Terrorism Risk 
Insurance Act of 2002, not later than the expiration 
of the 120-day period beginning upon the date of the 
enactment of this Act. 
(c) LIMITATION ON INSURER FINANCIAL RESPONSI-
BILITY; NOTIFICATION OF LOSSES.—Section 103(e) is 
amended— 
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(1) by redesignating paragraphs (4) through 
(8) (as amended by the preceding provisions of this 
Act) as paragraphs (5) through (9), respectively; 
and 
(2) by striking paragraph (3) and inserting the 
following new paragraphs: 
‘‘(3) LIMITATION ON INSURER FINANCIAL RE-
SPONSIBILITY.— 
‘‘(A) LIMITATION.—Notwithstanding any 
other provision of Federal or State law, includ-
ing any State workers’ compensation or other 
compulsory insurance law, an insurer’s financial 
responsibility for insured losses from acts of 
terrorism shall be limited to its applicable in-
surer deductible and its applicable quota share 
of insured losses determined pursuant to the 
applicable provisions of section 102(10) and 
paragraph (1)(A) of this subsection, respec-
tively, and subject to the requirements of para-
graph (2)(B) of this subsection. 
‘‘(B) FEDERAL
REIMBURSEMENT.—Not-
withstanding any other provision of Federal or 
State law, the Secretary shall— 
‘‘(i) reimburse insurers for any pay-
ment of excess insured losses made prior to 
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publication of any notification pursuant to 
paragraph (4)(A); 
‘‘(ii) reimburse insurers for any pay-
ment of excess insured losses occurring on 
or after the date of any notification pursu-
ant to paragraph (4)(A), but only to the 
extent that— 
‘‘(I) such payment is ordered by 
a court pursuant to subparagraph (C) 
of this paragraph or is directed by 
State law, notwithstanding this para-
graph, or by Federal law; 
‘‘(II) such payment is limited to 
compensating insurers for their pay-
ment of excess insured losses and does 
not include punitive damages, or liti-
gation or other costs; and 
‘‘(III) the insurer has made a 
good faith effort to defend against 
any claims for such payment; and 
‘‘(iii) have the right to intervene in 
any legal proceedings relating to such 
claims specified in clause (ii)(III). 
‘‘(C) FEDERAL COURT JURISDICTION.— 
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‘‘(i) CONDITIONS.—All claims relating 
to or arising out of an insurer’s financial 
responsibility for insured losses from acts 
of terrorism under this section shall be 
within the original and exclusive jurisdic-
tion of the district courts of the United 
States, in accordance with the procedures 
established in subparagraph (D), if the 
Secretary certifies that the following condi-
tions have been met, or that there is a rea-
sonable likelihood that the following condi-
tions may be met: 
‘‘(I) The aggregate amount of 
the Federal share of compensation to 
be paid to all insurers pursuant to 
paragraph 
(1)(A) 
exceeds 
$100,000,000,000, pursuant to para-
graph (2); and 
‘‘(II) the insurer has paid its ap-
plicable insurer deductible and its pro 
rata share of insured losses deter-
mined pursuant to paragraph (2)(B). 
‘‘(ii) REMOVAL OF STATE COURT AC-
TIONS.—If the Secretary certifies that con-
ditions set forth in subclauses (I) and (II) 
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of clause (i) have been met, all pending 
State court actions that relate to or arise 
out of an insurer’s financial responsibility 
for insured losses from acts of terrorism 
under this section shall be removed to a 
district court of the United States in ac-
cordance with subparagraph (D). 
‘‘(D) VENUE.—For each determination 
made by the Secretary pursuant to subpara-
graph (C)(i), not later than 90 days after the 
Secretary’s determination the Judicial Panel on 
Multidistrict Litigation shall designate one dis-
trict court or, if necessary, multiple district 
courts of the United States that shall have 
original and exclusive jurisdiction over all ac-
tions for any claim relating to or arising out of 
an insurers financial responsibility for insured 
losses from acts of terrorism under this section. 
‘‘(4) NOTICES
REGARDING
LOSSES
AND
AN-
NUAL LIABILITY CAP.— 
‘‘(A) APPROACHING CAP.—If the Secretary 
determines estimated or actual aggregate Fed-
eral compensation to be paid pursuant to para-
graph (1) equals or exceeds $80,000,000,000 
during any Program Year, the Secretary shall 
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promptly provide notification in accordance with 
subparagraph (D)— 
‘‘(i) of such estimated or actual aggre-
gate Federal compensation to be paid; 
‘‘(ii) of the likelihood that such aggre-
gate Federal compensation to be paid for 
such Program Year will equal or exceed 
$100,000,000,000; and 
‘‘(iii) that, pursuant to paragraph 
(2)(A)(ii), insurers are not required to 
make payments of excess insured losses. 
‘‘(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. 
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‘‘(C) EXCEEDING
OF
CAP.—If the Sec-
retary determines estimated or actual aggregate 
Federal compensation to be paid pursuant to 
paragraph 
(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 
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