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‘‘(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 
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‘‘(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 
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‘‘(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), 
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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; 
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‘‘(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— 
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‘‘(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 
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