of such loss, as well as any resulting 
cross-subsidization that might result; 
and 
‘‘(III) the various exposures to 
terrorism risk for different lines of in-
surance. 
‘‘(ii) 
RECOUPMENT
OF
ADJUST-
MENTS.—Any 
mandatory 
recoupment 
amounts not collected by the Secretary be-
cause of adjustments under this subpara-
graph shall be recouped through additional 
terrorism loss risk-spreading premiums. 
‘‘(E) TIMING
OF
PREMIUMS.—The Sec-
retary may adjust the timing of terrorism loss 
risk-spreading premiums to provide for equiva-
lent application of the provisions of this title to 
policies that are not based on a calendar year, 
or to apply such provisions on a daily, monthly, 
or quarterly basis, as appropriate. 
‘‘(f) CAPTIVE INSURERS AND OTHER SELF-INSUR-
ANCE ARRANGEMENTS.—The Secretary may, in consulta-
tion with the NAIC or the appropriate State regulatory 
authority, apply the provisions of this title, as appropriate, 
to other classes or types of captive insurers and other self- 
insurance arrangements by municipalities and other enti-
ties (such as workers’ compensation self-insurance pro-
grams and State workers’ compensation reinsurance 
pools), but only if such application is determined before 
the occurrence of an act of terrorism in which such an 
entity incurs an insured loss and all of the provisions of 
this title are applied comparably to such entities. 
‘‘(g) REINSURANCE TO COVER EXPOSURE.— 
‘‘(1) OBTAINING
COVERAGE.—This title may 
not be construed to limit or prevent insurers from 
obtaining 
reinsurance 
coverage 
for 
insurer 
deductibles or insured losses retained by insurers 
pursuant to this section, nor shall the obtaining of 
such coverage affect the calculation of such 
deductibles or retentions. 
‘‘(2) LIMITATION ON FINANCIAL ASSISTANCE.— 
The amount of financial assistance provided pursu-
ant to this section shall not be reduced by reinsur-
ance paid or payable to an insurer from other 
sources, except that recoveries from such other 
sources, taken together with financial assistance for 
the Transition Period or a Program Year provided 
pursuant to this section, may not exceed the aggre-
gate amount of the insurer’s insured losses for such 
period. If such recoveries and financial assistance for 
the Transition Period or a Program Year exceed
such aggregate amount of insured losses for that pe-
riod and there is no agreement between the insurer 
and any reinsurer to the contrary, an amount in ex-
cess of such aggregate insured losses shall be re-
turned to the Secretary. 
‘‘(h) PRIVILEGED PROCEDURE FOR JOINT RESOLU-
TION FOR PAYMENT OF FEDERAL COMPENSATION.— 
‘‘(1) IN GENERAL.—The Secretary shall pay the 
Federal share of compensation under the Program 
for insured losses resulting from an act of terrorism 
only if there is enacted a joint resolution for pay-
ment of Federal compensation with respect to such 
act of terrorism. 
‘‘(2) JOINT RESOLUTION.—For purposes of this 
subsection, the term ‘joint resolution for payment of 
Federal compensation’ means a joint resolution 
that— 
‘‘(A) does not have a preamble; 
‘‘(B) the matter after the resolving clause 
of which is as follows: ‘That the Congress ap-
proves of the certification by the Secretary of 
the Treasury under section 102(1)(A) of the 
Terrorism Risk Insurance Act of 2002.’; and
‘‘(C) the title of which is as follows: ‘To 
permit Federal compensation under the Ter-
rorism Risk Insurance Act of 2002’. 
‘‘(3) INTRODUCTION
AND
REFERRAL.—Upon 
receipt of a submission under section 102(1)(G), the 
joint resolution described in this subsection shall be 
introduced by the majority leader of each House or 
his designee (by request). In the case in which a 
House is not in session, such joint resolution shall 
be so introduced upon convening the first day of ses-
sion after the date of receipt of the certification. 
Upon introduction, the joint resolution shall be re-
ferred to the appropriate calendar in each House. 
‘‘(4) CONSIDERATION IN THE HOUSE OF REP-
RESENTATIVES.— 
‘‘(A) PROCEEDING TO CONSIDERATION.— 
Upon referral to the appropriate calendar, it 
shall be in order to move to proceed to consider 
the joint resolution in the House. Such a mo-
tion shall be in order only at a time designated 
by the Speaker in the legislative schedule within 
two legislative days. The previous question shall 
be considered as ordered on the motion to its 
adoption without intervening motion. A motion
to reconsider the vote by which the motion is 
disposed of shall not be in order. 
‘‘(B) CONSIDERATION.—The joint resolu-
tion shall be considered as read. All points of 
order against the joint resolution and against 
its consideration are waived. The previous ques-
tion shall be considered as ordered on the joint 
resolution to its passage without intervening 
motion except one hour of debate equally di-
vided and controlled by a proponent and an op-
ponent and one motion to limit debate on the 
joint resolution. A motion to reconsider the vote 
on passage of the joint resolution shall not be 
in order. 
‘‘(5) CONSIDERATION IN THE SENATE.— 
‘‘(A) PROCEEDING.—Upon introduction, 
the joint resolution shall be placed on the Cal-
endar of Business, General Orders. A motion to 
proceed to the consideration of the joint resolu-
tion shall be in order at any time. The motion 
is privileged and not debatable. A motion to 
proceed to consideration of the joint resolution 
may be made even though a previous motion to 
the same effect has been disagreed to. An 
amendment to the motion shall not be in order,
nor shall it be in order to move to reconsider 
the vote by which the motion is agreed to. 
‘‘(B) DEBATE.—Debate on the joint reso-
lution, and all debatable motions and appeals in 
connection therewith, shall be limited to not 
more than ten hours. The time shall be equally 
divided between and controlled by, the majority 
leader and the minority leader or their des-
ignees. 
‘‘(C) 
DEBATABLE
MOTIONS
AND
AP-
PEALS.—Debate on any debatable motion or 
appeal in relation to the joint resolution shall be 
limited to not more than one hour from the 
time allotted for debate, equally divided and 
controlled by the majority leader and the minor-
ity leader or their designees. 
‘‘(D) MOTION TO LIMIT DEBATE.—A mo-
tion to further limit debate is not debatable. 
‘‘(E) MOTION TO RECOMMIT.—Any motion 
to commit or recommit the joint resolution shall 
not be in order. 
‘‘(F) FINAL
PASSAGE.—The Chair shall 
put the question on final passage of the joint 
resolution no later than 72 hours from the time 
the measure is introduced.
‘‘(6) AMENDMENTS PROHIBITED.—No amend-
ment to, or motion to strike a provision from, a joint 
resolution considered under this subsection shall be 
in order in either the Senate or the House of Rep-
resentatives. 
‘‘(7) CONSIDERATION BY THE OTHER HOUSE.— 
In the case of a joint resolution described in this 
subsection, if before passage by one House of a joint 
resolution of that House, that House receives such 
joint resolution from the other House, then— 
‘‘(A) the procedure in that House shall be 
the same as if no joint resolution had been re-
ceived from the other House; but 
‘‘(B) the vote on final passage shall be on 
the joint resolution of the other House. 
‘‘(8) HOUSE AND SENATE RULEMAKING.—This 
subsection is enacted by the Congress as an exercise 
of the rulemaking power of the House of Represent-
atives and Senate, respectively, and as such is 
deemed a part of the rules of each House, respec-
tively, and such procedures supersede other rules 
only to the extent that they are inconsistent with 
such rules; and with full recognition of the constitu-
tional right of either House to change the rules (so 
far as relating to the procedures of that House) at
any time, in the same manner, and to the same ex-
tent as any other rule of that House.’’; 
(2) in section 104(a)— 
(A) in paragraph (1), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (2), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) during the 90-day period beginning upon 
the certification of any act of terrorism, to issue 
such regulations as the Secretary considers nec-
essary to carry out this Act without regard to the 
notice and comment provisions of section 553 of title 
5, United States Code.’’; 
(3) in section 104, by adding at the end the fol-
lowing new subsection: 
‘‘(h) ANNUAL ADJUSTMENT.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, the Secretary shall adjust, for 
the second additional Program Year and for each 
additional Program Year thereafter, based upon the 
percentage change in the Consumer Price Index for 
All Urban Consumers (CPI-U), as published by the 
Bureau of Labor Statistics of the Department of
Labor, during the 12-month period preceding such 
program year, each of the dollar amounts set forth 
in this title (as such amount may have been pre-
viously adjusted), including the following amounts: 
‘‘(A) 
The 
dollar 
amount 
in 
section 
102(1)(B)(ii) (relating to act of terrorism). 
‘‘(B) The dollar amounts in subparagraphs 
(J) and (K) of section 102(11) (relating to an 
insurer deductible threshold based on the 
amount of aggregate industry insured losses). 
‘‘(C) The dollar amounts in subparagraphs 
(A) and (B) of section 103(e)(1) (relating to 
limitation on Federal share). 
‘‘(D) The dollar amounts in section 
103(e)(1)(C) (relating to Program trigger). 
‘‘(E) 
The 
dollar 
amount 
in 
section 
103(e)(1)(D) (relating to limitation on group 
life insurance compensation). 
‘‘(F) The dollar amounts in section 
103(e)(2) (relating to cap on annual liability). 
‘‘(G) The dollar amounts in section 
103(e)(3)(C) (relating to limitation on insurer 
financial liability).
‘‘(H) The dollar amounts in section 
103(e)(4) (relating to notices regarding losses 
and annual liability cap). 
‘‘(I) 
The 
dollar 
amounts 
in 
section 
103(e)(7) (relating to insurance marketplace 
aggregate retention amount). 
‘‘(J) The dollar amounts in section 
109(b)(1)(C) (relating to membership of Com-
mission on Terrorism Insurance Risk). 
‘‘(2) PUBLICATION.—The Secretary shall make 
the dollar amounts for each additional Program 
Year, as adjusted pursuant to this subsection, pub-
licly available in a timely manner.’’; 
(4) in section 106(a)(2)— 
(A) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(B) by redesignating subparagraph (C) as 
subparagraph (F); and 
(C) by inserting after subparagraph (B) 
the following new subparagraphs: 
‘‘(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, and
group life insurance, required by this title and 
providing coverage except for NBCR terrorism 
that are filed with any State shall not be sub-
ject to prior approval or a waiting period under 
any law of a State that would otherwise be ap-
plicable, except that nothing in this title affects 
the ability of any State to invalidate a rate as 
excessive, inadequate, or unfairly discrimina-
tory, and, with respect to forms, where a State 
has prior approval authority, it shall apply to 
allow subsequent review of such forms; 
‘‘(D) 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, 2009, forms for 
property and casualty insurance, and group life 
insurance, covered by this title and providing 
coverage for NBCR terrorism that are filed 
with any State, to the extent of the addition of 
such coverage for NBCR terrorism and where 
such coverage was not previously required, shall 
not be subject to prior approval or waiting pe-
riod under any law of a State that would other-
wise be applicable;
‘‘(E) 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, 2010, rates for 
property and casualty insurance, and group life 
insurance, covered by this title and providing 
coverage for NBCR terrorism that are filed 
with any State, to the extent of the addition of 
such coverage for NBCR terrorism and where 
such coverage was not previously required, shall 
not be subject to prior approval or waiting pe-
riod under any law of a State that would other-
wise be applicable, except that nothing in this 
title affects the ability of any State to invalidate 
a rate as inadequate or unfairly discriminatory; 
and’’; 
(5) in section 106, by adding at the end the fol-
lowing new subsection: 
‘‘(c) RULE OF CONSTRUCTION REGARDING INSURER 
COORDINATION.—Nothing in this Act shall be construed 
to prohibit, restrict, or otherwise limit an insurer from en-
tering into an arrangement with another insurer to make 
available coverage for any portion of insured losses to ful-
fill the requirements of section 103(c). The Secretary shall 
develop, in consultation with the NAIC, minimum finan-
cial solvency standards and other standards the Secretary 
determines appropriate with respect to such arrange-
ments. Nothing in this subsection shall be construed to 
establish any legal partnership.’’; and 
(6) in section 108(c)(1), by striking ‘‘paragraph 
(4), (5), (6), (7), or (8)’’ and inserting ‘‘paragraph 
(5), (6), (7), (8), or (9)’’. 
(b) REGULATIONS ON CLAIMS ALLOCATIONS.—The 
Secretary of the Treasury shall issue the regulations re-
ferred to in subparagraph (C) of section 103(e)(2) of the 
Terrorism Risk Insurance Act of 2002, as amended by 
subsection (a)(1) of this section, and to carry out subpara-
graph (B) of such section 103(e)(2), not later than the 
expiration of the 120-day period beginning upon the date 
of the enactment of this Act. 
(c) REGULATIONS ON CERTIFICATION OF AN ACT OF 
NBCR TERRORISM.—The Secretary of the Treasury shall 
issue the regulations to carry out subparagraph (C) of sec-
tion 102(1) of the Terrorism Risk Insurance Act of 2002, 
as amended by subsection (a)(1) of this section, not later 
than the expiration of the 180-day period beginning upon 
the date of the enactment of this Act. 
(d) REGULATIONS
ON NBCR EXEMPTIONS.—The 
Secretary of the Treasury shall issue the regulations to 
carry out paragraph (4) of section 103(a) of the Terrorism
Risk Insurance Act of 2002, as amended by subsection 
(a)(1) of this section, not later than the expiration of the 
180-day period beginning upon the date of the enactment 
of this Act. 
SEC. 4. TERRORISM BUY-DOWN FUND. 
The Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended— 
(1) by inserting after section 106 the following 
new section: 
‘‘SEC. 106A. TERRORISM BUY-DOWN FUND. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a Terrorism Buy-Down Fund (in this section referred 
to as the ‘Fund’) that shall make available additional ter-
rorism coverage for the insured losses of insurers, which 
shall be available for purchase by insurers on a voluntary 
basis. 
‘‘(b) PURCHASE OF DEDUCTIBLE, CO-SHARE, AND 
TRIGGER BUY-DOWN COVERAGE.— 
‘‘(1) IN GENERAL.—An insurer may purchase 
deductible, co-share, and pre-trigger buy-down cov-
erage (in this section referred to as ‘buy-down cov-
erage’) through the Fund by making an election, in 
advance, to treat some or all of the premiums it has 
disclosed pursuant to section 106(b)(3) as fee
charges for the Program imposed by the Secretary 
and remitting such amounts to the Fund. 
‘‘(2) LIMITS.—An insurer may not purchase 
buy-down coverage in an amount greater than the 
lesser of— 
‘‘(A) the highest amount specified in sec-
tion 103(e)(1)(C); and 
‘‘(B) the insurer’s one-in-one-hundred-year 
risk exposure to acts of terrorism. 
‘‘(c) BUY-DOWN COVERAGE.—The Fund shall pro-
vide the buy-down coverage to an insurer for losses for 
acts of terrorism, without application of the insurer de-
ductible and in addition to any otherwise payable Federal 
share of compensation pursuant to section 103(e). 
‘‘(d) BUILD-UP.—The buy-down coverage that shall 
be payable to an insurer for qualifying losses shall be the 
aggregate of the insurer’s buy-down coverage premiums 
plus interest accrued on such amounts. 
‘‘(e) USE BY INSURERS.— 
‘‘(1) QUALIFYING LOSSES.—For the purpose of 
this section, qualifying losses are insured losses by 
an insurer that are not excess losses and that do not 
include amounts for which Federal financial assist-
ance pursuant to section 103(e) is received, notwith-
standing any limits otherwise applicable regarding
section 103(e)(1)(C) (regarding program triggers) or 
section 102(11) (regarding insurer deductibles). 
‘‘(2) USE OF BUY-DOWN COVERAGE.—An in-
surer may use any buy-down coverage payments re-
ceived under subsection (f) to satisfy— 
‘‘(A) the applicable insurer deductibles for 
the insurer; 
‘‘(B) the portion of the insurer’s losses 
that exceed the insurer deductible but are not 
compensated by the Federal share; and 
‘‘(C) the insurer’s obligations to pay for in-
sured losses if the Program trigger under sec-
tion 103(e)(1)(C) is not satisfied. 
‘‘(3) BUY-DOWN COVERAGE DOES NOT REDUCE 
FEDERAL CO-SHARE.—The receipt by an insurer of 
buy-down coverage under this section for insured 
losses shall not be considered with respect to calcu-
lating the insurer’s insured losses with respect to the 
insurer’s deductible and eligibility for Federal finan-
cial assistance pursuant to section 103(e). 
‘‘(4) INSOLVENCY.—An insurer may sell its 
rights to buy-down coverage from the Fund to an-
other insurer as part of or to avoid an insolvency or 
as part of a merger, sale, or major reorganization.
‘‘(f) PAYMENT
OF
BUY-DOWN
COVERAGE.—The 
Fund shall pay the qualifying losses of an insurer pur-
chasing buy-down coverage up to the amount described in 
subsection (d). 
‘‘(g) GOVERNMENT
BORROWING.—The Secretary 
may borrow the funds from the Fund to offset, in whole 
or in part, the Federal share of compensation provided 
to all insurers under the Program, except that— 
‘‘(1) the Fund shall always immediately provide 
any buy-down coverage payments required under 
subsection (f); and 
‘‘(2) any such amounts borrowed must be re-
plenished with appropriate interest. 
‘‘(h) RISK-SHARING MECHANISMS.—The Secretary 
shall establish voluntary risk-sharing mechanisms for in-
surers purchasing buy-down coverage from the Fund to 
pool their reinsurance purchases and otherwise share ter-
rorism risk. 
‘‘(i) TERMINATION.—Upon termination of the Pro-
gram under section 108, and subject to the Secretary’s 
continuing authority under section 108(b) to adjust claims 
in satisfaction under the Program, the Secretary shall pro-
vide that the Fund shall become a privately-operated mu-
tual terrorism reinsurance company owned by the insurers 
that have submitted buy-down coverage premiums in pro-
portion to such premiums minus any buy-down coverage 
payments received.’’; and 
(2) in the table of contents in section 1(b), by 
inserting after the item relating to section 106 the 
following new item: 
‘‘Sec. 106A. Terrorism Buy-Down Fund.’’. 
SEC. 5. ANALYSIS AND STUDY. 
(a) ANALYSIS
OF MARKET CONDITIONS.—Section 
108 of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended by striking subsection (e) 
and inserting the following: 
‘‘(e) ANALYSIS OF MARKET CONDITIONS FOR TER-
RORISM RISK INSURANCE.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the NAIC, representatives of the insurance 
industry, representatives of the securities industry, 
and representatives of policyholders, shall perform 
an analysis regarding the long-term availability and 
affordability of insurance for terrorism risk in the 
private marketplace, including coverage for— 
‘‘(A) property and casualty insurance; 
‘‘(B) group life insurance; 
‘‘(C) workers’ compensation; 
‘‘(D) nuclear, biological, chemical, and ra-
diological events; and 
‘‘(E) commercial real estate.
‘‘(2) BIENNIAL REPORTS.—The Secretary shall 
submit biennial reports to the Committee on Finan-
cial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate, on its findings pursuant to the 
analysis conducted under paragraph (1). The first 
such report shall be submitted not later than the ex-
piration of the 24-month period beginning on the 
date of the enactment of the Terrorism Risk Insur-
ance Revision and Extension Act of 2007. 
‘‘(3) TESTIMONY.—Upon submission of each bi-
ennial report under paragraph (2), the Secretary 
shall provide oral testimony to the Committee on Fi-
nancial Services of the House of Representatives and 
Committee on Banking, Housing, and Urban Affairs 
of the United States Senate regarding the report 
and the analysis under this subsection for which the 
report is submitted.’’. 
(b) COMMISSION ON TERRORISM RISK INSURANCE.— 
Title I of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended— 
(1) by adding at the end the following new sec-
tion:
‘‘SEC. 109. COMMISSION ON TERRORISM RISK INSURANCE. 
‘‘(a) ESTABLISHMENT.—There is hereby established 
the Commission on Terrorism Risk Insurance (in this sec-
tion referred to as the ‘Commission’). 
‘‘(b) MEMBERSHIP.— 
‘‘(1) The Commission shall consist of 21 mem-
bers, as follows: 
‘‘(A) The Secretary of the Treasury or the 
designee of the Secretary. 
‘‘(B) One member who is a State insur-
ance commissioner, designated by the NAIC. 
‘‘(C) 15 members, who shall be appointed 
by the President, who shall include— 
‘‘(i) a representative of group life in-
surers; 
‘‘(ii) a representative of property and 
casualty insurers with direct earned pre-
mium of $1,000,000,000 or less; 
‘‘(iii) a representative of property and 
casualty insurers with direct earned pre-
mium of more than $1,000,000,000; 
‘‘(iv) a representative of multiline in-
surers; 
‘‘(v) a representative of independent 
insurance agents;
‘‘(vi) a representative of insurance 
brokers; 
‘‘(vii) a policyholder representative; 
‘‘(viii) a representative of the sur-
vivors of the victims of the attacks of Sep-
tember 11, 2001; 
‘‘(ix) a representative of the reinsur-
ance industry; 
‘‘(x) a representative of workers’ com-
pensation insurers; 
‘‘(xi) a representative from the com-
mercial mortgage-backed securities indus-
try; 
‘‘(xii) a representative from a nation-
ally recognized statistical rating organiza-
tion; 
‘‘(xiii) a real estate developer; 
‘‘(xiv) a representative of workers’ 
compensation insurers created by State 
legislatures, selected in consultation with 
the American Association of State Com-
pensation Insurance Funds from among its 
members; and 
‘‘(xv) a representative from the com-
mercial real estate brokerage industry or
the commercial property management in-
dustry. 
‘‘(D) Four members, who shall serve as li-
aisons to the Congress, who shall include two 
members jointly selected by the Chairman and 
Ranking Member of the Committee on Finan-
cial Services of the House of Representatives 
and two members jointly selected by the Chair-
man and Ranking Member of the Committee on 
Banking, Housing, and Urban Affairs of the 
Senate. 
‘‘(2) SECRETARY.—The Program Director of 
the Terrorism Risk Insurance Act of the Depart-
ment of the Treasury shall serve as Secretary of the 
Commission. The Secretary of the Commission shall 
determine the manner in which the Commission 
shall operate, including funding and staffing. 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—The Commission shall iden-
tify and make recommendations regarding— 
‘‘(A) possible actions to encourage, facili-
tate, and sustain provision by the private insur-
ance industry in the United States of affordable 
coverage for losses due to an act or acts of ter-
rorism;
‘‘(B) possible actions or mechanisms to 
sustain or supplement the ability of the insur-
ance industry in the United States to cover 
losses resulting from acts of terrorism in the 
event that— 
‘‘(i) such losses jeopardize the capital 
and surplus of the insurance industry in 
the United States as a whole; or 
‘‘(ii) other consequences from such 
acts occur, as determined by the Commis-
sion, that may significantly affect the abil-
ity of the insurance industry in the United 
States to cover such losses independently; 
and 
‘‘(C) possible actions to significantly re-
duce the Federal role in covering losses result-
ing from acts of terrorism. 
‘‘(2) EVALUATIONS.—In identifying and mak-
ing the recommendations required under paragraph 
(1), the Commission shall specifically evaluate the 
utility and viability of proposals aimed at improving 
the availability of insurance against terrorism risk in 
the private marketplace. 
‘‘(3) INITIAL MEETING.—The Commission shall 
hold its first meeting during the 3-month period that