‘‘(B) an insurer may offer other options for 
coverage that differ materially from the terms, 
amounts, and other coverage limitations applica-
ble to losses arising from events other than acts 
of terrorism; 
except that nothing in this paragraph shall affect 
paragraph (4). 
‘‘(3) APPLICABILITY
FOR
NBCR
TERRORISM.— 
Notwithstanding any other provision of this Act, 
paragraphs (1)(B) and (2) shall apply, beginning 
upon January 1, 2009, with respect to coverage for 
acts of NBCR terrorism, that is purchased or renewed 
on or after such date. 
‘‘(4) AVAILABILITY OF LIFE INSURANCE WITHOUT 
REGARD TO LAWFUL FOREIGN TRAVEL.—During each 
Program Year, each entity that meets the definition 
of an insurer under section 102 shall make available, 
in all of its life insurance policies issued after the 
date of the enactment of the Terrorism Risk Insurance 
Revision and Extension Act of 2007 under which the 
insured person is a citizen of the United States or an 
alien lawfully admitted for permanent residence in 
the United States, coverage that neither considers 
past, nor precludes future, lawful foreign travel by the 
person insured, and shall not decline such coverage 
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based on past or future, lawful foreign travel by the 
person insured or charge a premium for such coverage 
that is excessive and not based on a good faith actu-
arial analysis, except that an insurer may decline or, 
upon inception or renewal of a policy, limit the 
amount of coverage provided under any life insurance 
policy based on plans to engage in future lawful for-
eign travel to occur within 12 months of such incep-
tion or renewal of the policy but only if, at time of 
application— 
‘‘(A) such declination is based on, or such 
limitation applies only with respect to, travel to 
a foreign destination— 
‘‘(i) for which the Director of the Cen-
ters for Disease Control and Prevention of 
the Department of Health and Human 
Services has issued a highest level alert or 
warning, 
including 
a 
recommendation 
against non-essential travel, due to a seri-
ous health-related condition; 
‘‘(ii) in which there is an ongoing 
military conflict involving the armed forces 
of a sovereign nation other than the nation 
to which the insured person is traveling; or 
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‘‘(iii)(I) that the insurer has specifi-
cally designated in the terms of the life in-
surance policy at the inception of the policy 
or at renewal, as applicable; and 
‘‘(II) with respect to which the insurer 
has made a good-faith determination that— 
‘‘(aa) a serious unlawful situation 
exists which is ongoing; and 
‘‘(bb) the credibility of informa-
tion by which the insurer can verify 
the death of the insured person is com-
promised; and 
‘‘(B) in the case of any limitation of cov-
erage, such limitation is specifically stated in the 
terms of the life insurance policy at the incep-
tion of the policy or at renewal, as applicable. 
‘‘(d) STATE RESIDUAL MARKET INSURANCE ENTI-
TIES.— 
‘‘(1) IN
GENERAL.—The Secretary shall issue 
regulations, as soon as practicable after the date of 
enactment of this Act, that apply the provisions of 
this title to State residual market insurance entities 
and State workers’ compensation funds. 
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‘‘(2) TREATMENT
OF
CERTAIN
ENTITIES.—For 
purposes of the regulations issued pursuant to para-
graph (1)— 
‘‘(A) a State residual market insurance en-
tity that does not share its profits and losses 
with private sector insurers shall be treated as a 
separate insurer; and 
‘‘(B) a State residual market insurance en-
tity that shares its profits and losses with pri-
vate sector insurers shall not be treated as a sep-
arate insurer, and shall report to each private 
sector insurance participant its share of the in-
sured losses of the entity, which shall be included 
in each private sector insurer’s insured losses. 
‘‘(3) TREATMENT OF PARTICIPATION IN CERTAIN 
ENTITIES.—Any insurer that participates in sharing 
profits and losses of a State residual market insur-
ance entity shall include in its calculations of pre-
miums any premiums distributed to the insurer by 
the State residual market insurance entity. 
‘‘(e) INSURED LOSS SHARED COMPENSATION.— 
‘‘(1) FEDERAL SHARE.— 
‘‘(A) CONVENTIONAL
TERRORISM.—Except 
as provided in subparagraph (B), the Federal 
share of compensation under the Program to be 
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paid by the Secretary for insured losses of an in-
surer 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 insurer 
deductible required to be paid during 
such Program Year; and 
‘‘(II) based upon pro rata deter-
minations 
pursuant 
to 
paragraph 
(2)(B), does not result in aggregate in-
dustry insured losses during such Pro-
gram Year exceeding $100,000,000,000; 
and 
‘‘(ii) 100 percent of the insured losses 
of the insurer that, based upon pro rata de-
terminations pursuant to paragraph (2)(B), 
result in 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 in-
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sured losses of an insurer resulting from 
NBCR terrorism during any additional 
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 percent-
age shall be— 
‘‘(aa) 85 percent of such ag-
gregate industry qualified NBCR 
losses 
of 
less 
than 
$10,000,000,000; 
‘‘(bb) 87.5 percent of such ag-
gregate 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 
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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 ag-
gregate industry qualified NBCR losses 
for such additional Program 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), result in aggregate in-
dustry insured losses during such Pro-
gram 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 respect 
to insured losses of an insurer resulting 
from NBCR terrorism during an additional 
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Program Year, that portion of the amount 
of such insured losses that— 
‘‘(I) exceeds the applicable insurer 
deductible required to be paid during 
such Program Year; and 
‘‘(II) based upon pro rata deter-
minations 
pursuant 
to 
paragraph 
(2)(B), does not result in aggregate in-
dustry insured losses during such Pro-
gram Year exceeding $100,000,000,000. 
‘‘(C) PROGRAM TRIGGER.—In the case of a 
certified act of terrorism occurring after March 
31, 2006, no compensation shall be paid by the 
Secretary under subsection (a), unless the aggre-
gate industry insured losses resulting from such 
certified act of terrorism exceed $50,000,000, ex-
cept 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). 
‘‘(D) LIMITATION
ON
COMPENSATION
FOR 
GROUP LIFE INSURANCE.—Notwithstanding any 
other provision of this Act, the Federal share of 
compensation under the Program paid by the 
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Secretary for insured losses of an insurer result-
ing from coverage of any single certificate holder 
under any group life insurance coverages of the 
insurer may not during any additional Program 
Year exceed $1,000,000. 
‘‘(E) PROHIBITION ON DUPLICATIVE COM-
PENSATION.—The Federal share of compensation 
for insured losses under the Program shall be re-
duced by the amount of compensation provided 
by the Federal Government to any person under 
any other Federal program for those insured 
losses. 
‘‘(2) CAP ON ANNUAL LIABILITY.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1) or any other provision of Federal or 
State law, including any State workers’ com-
pensation or other compulsory insurance law, if 
the aggregate amount of the Federal share of 
compensation to be paid to all insurers pursuant 
to paragraph (1) exceeds $100,000,000,000, dur-
ing any additional Program Year (until such 
time as the Congress may act otherwise with re-
spect to such losses)— 
‘‘(i) the Secretary shall not make any 
payment under this title for any portion of 
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the amount of the aggregate insured losses 
during such Program Year for which the 
Federal share exceeds $100,000,000,000; and 
‘‘(ii) no insurer that has met its in-
surer deductible shall be liable for the pay-
ment of any portion of the aggregate in-
sured losses during such Program Year that 
exceeds $100,000,000,000. 
‘‘(B) INSURER
SHARE.—For purposes of 
subparagraph (A), the Secretary shall determine 
the pro rata share of insured losses to be paid by 
each insurer that incurs insured losses under the 
Program. 
‘‘(C) CLAIMS ALLOCATIONS.—The Secretary 
shall, by regulation, provide for insurers to allo-
cate claims payments for insured losses under 
applicable insurance policies in any case de-
scribed in subparagraph (A). Such regulations 
shall include provisions for payment, for the 
purpose of addressing emergency needs of appli-
cable individuals affected by an act of terrorism, 
of a portion of claims for insured losses prompt-
ly upon filing of such claims. 
‘‘(3) LIMITATION
ON
INSURER
FINANCIAL
RE-
SPONSIBILITY.— 
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‘‘(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 ter-
rorism shall be limited to its applicable insurer 
deductible and its applicable share of insured 
losses that exceed its applicable insurer deduct-
ible, subject to the requirements of paragraph 
(2). 
‘‘(B) FEDERAL REIMBURSEMENT.—Notwith-
standing 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 
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 pursuant 
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 
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law, notwithstanding this paragraph, 
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.— 
‘‘(i) CONDITIONS.—All claims relating 
to or arising out of an insurer’s financial 
responsibility for insured losses from acts of 
terrorism under this paragraph 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 Sec-
retary certifies that the following conditions 
have been met, or that there is a reasonable 
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likelihood that the following conditions may 
be met: 
‘‘(I) The aggregate amount of the 
Federal share of compensation to be 
paid to all insurers pursuant to para-
graph (1) exceeds $100,000,000,000, 
pursuant to paragraph (2); and 
‘‘(II) the insurer has paid its ap-
plicable insurer deductible and its pro 
rata share of insured losses determined 
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) 
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 paragraph shall be removed to a 
district court of the United States in ac-
cordance with subparagraph (D). 
‘‘(D) VENUE.—For each certification made 
by the Secretary pursuant to subparagraph 
(C)(i), not later than 90 days after the Sec-
retary’s determination the Judicial Panel on 
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Multidistrict Litigation shall designate one dis-
trict court or, if necessary, multiple district 
courts of the United States that shall have origi-
nal and exclusive jurisdiction over all actions for 
any claim relating to or arising out of an insur-
er’s financial responsibility for insured losses 
from acts of terrorism under this paragraph. 
‘‘(4) NOTICES REGARDING LOSSES AND ANNUAL 
LIABILITY CAP.— 
‘‘(A) APPROACHING CAP.—If the Secretary 
determines estimated or actual aggregate Federal 
compensation to be paid pursuant to paragraph 
(1) equals or exceeds $80,000,000,000 during any 
Program Year, the Secretary shall promptly pro-
vide notification in accordance with subpara-
graph (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. 
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‘‘(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 compensa-
tion to be paid pursuant to paragraph (1) to ex-
ceed $100,000,000,000 during any Program 
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. 
‘‘(C) EXCEEDING CAP.—If the Secretary de-
termines 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 
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‘‘(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 pur-
suant to clause (ii) of this subpara-
graph; 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 
‘‘(ii) to insurers, by causing such no-
tice to be published in the Federal Register. 
‘‘(E) 
DETERMINATIONS.—The 
Secretary 
shall make determinations regarding estimated 
and actual aggregate Federal compensation to be 
paid promptly after any act of terrorism as may 
be necessary to comply with this paragraph. 
‘‘(F) MANDATORY DISCLOSURE FOR INSUR-
ANCE CONTRACTS.—All policies for property and 
casualty insurance and group life insurance 
shall be deemed to contain a provision to the ef-
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fect that no insurer that has met its applicable 
insurer deductible and its applicable share of in-
sured losses that exceed its applicable insurer de-
ductible but are not compensated pursuant to 
paragraph (1), shall be obligated to pay for any 
portion of excess insured loss. Notwithstanding 
the preceding sentence, insurers shall include a 
disclosure in their policies detailing the max-
imum level of Government assistance and the ap-
plicable insurer share. 
‘‘(5) FINAL NETTING.—The Secretary shall have 
sole discretion to determine the time at which claims 
relating to any insured loss or act of terrorism shall 
become final. 
‘‘(6) DETERMINATIONS FINAL.—Any determina-
tion of the Secretary under this subsection shall be 
final, unless expressly provided, and shall not be sub-
ject to judicial review. 
‘‘(7) INSURANCE MARKETPLACE AGGREGATE RE-
TENTION AMOUNT.—For purposes of paragraph (8), 
the insurance marketplace aggregate retention amount 
shall be— 
‘‘(A) for the period beginning on the first 
day of the Transition Period and ending on the 
last day of Program Year 1, the lesser of— 
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‘‘(i) $10,000,000,000; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such period; 
‘‘(B) for Program Year 2, the lesser of— 
‘‘(i) $12,500,000,000; and 
‘‘(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— 
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‘‘(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 dur-
ing such Program Year; and 
‘‘(ii) for group life insurance, the lesser 
of— 
‘‘(I) $5,000,000,000; and 
‘‘(II) the aggregate amount, for all 
such insurance, of insured losses dur-
ing 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 be-
tween— 
‘‘(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 subparagraph 
(E)), of insured losses during such Program 
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Year that are not compensated by the Fed-
eral Government because such losses— 
‘‘(I) are within the insurer de-
ductible for the insurer subject to the 
losses; or 
‘‘(II) are within the portion of 
losses of the insurer that exceed the in-
surer deductible, but are not com-
pensated pursuant to paragraph (1). 
‘‘(B) NO MANDATORY RECOUPMENT IF UN-
COMPENSATED LOSSES EXCEED APPLICABLE IN-
SURANCE MARKETPLACE RETENTION.—Notwith-
standing subparagraph (A), if the aggregate 
amount of uncompensated insured losses referred 
to in clause (ii) of such subparagraph for any 
Program Year referred to in any of subpara-
graphs (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 mandatory 
recoupment amount shall be $0. 
‘‘(C) MANDATORY ESTABLISHMENT OF SUR-
CHARGES TO RECOUP MANDATORY RECOUPMENT 
AMOUNT.—The Secretary shall collect, for repay-
ment of the Federal financial assistance provided 
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in connection with all acts of terrorism (or acts 
of war, in the case of workers’ compensation) oc-
curring during any of the Program Years re-
ferred to in any of subparagraphs (A) through 
(F) of paragraph (7), terrorism loss risk-spread-
ing premiums in an amount equal to any man-
datory recoupment amount for such Program 
Year. 
‘‘(D) DISCRETIONARY RECOUPMENT OF RE-
MAINDER OF FINANCIAL ASSISTANCE.—To the ex-
tent that the amount of Federal financial assist-
ance 
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 Secretary 
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 in-
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dustry and the current cycle of the in-
surance markets; 
‘‘(III) the affordability of commer-
cial insurance for small- and medium- 
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 
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Secretary as a terrorism loss risk-spreading pre-
mium shall— 
‘‘(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 estab-
lishment; 
‘‘(ii) begin with such period of coverage 
during the year as the Secretary determines 
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— 
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‘‘(i) with respect to property and cas-
ualty insurance, the amount equal to 3 per-
cent of the premium charged under the pol-
icy; and 
‘‘(ii) with respect to group life insur-
ance, the amount equal to 0.0053 percent of 
the amount at risk under the policy. 
‘‘(D) ADJUSTMENT FOR URBAN AND SMALL-
ER COMMERCIAL AND RURAL AREAS AND DIF-
FERENT LINES OF INSURANCE.— 
‘‘(i) ADJUSTMENTS.—In determining 
the method and manner of imposing ter-
rorism loss risk-spreading premiums, in-
cluding the amount of such premiums, the 
Secretary shall take into consideration— 
‘‘(I) the economic impact on com-
mercial centers of urban areas, includ-
ing the effect on commercial rents and 
commercial insurance premiums, par-
ticularly rents and premiums charged 
to small businesses, and the avail-
ability of lease space and commercial 
insurance within urban areas; 
‘‘(II) the risk factors related to 
rural areas and smaller commercial 
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centers, including the potential expo-
sure to loss and the likely magnitude 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 Secretary 
may adjust the timing of terrorism loss risk- 
spreading premiums to provide for equivalent 
application of the provisions of this title to poli-
cies 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-INSURANCE 
ARRANGEMENTS.—The Secretary may, in consultation with 
the NAIC or the appropriate State regulatory authority, 
apply the provisions of this title, as appropriate, to other 
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classes or types of captive insurers and other self-insurance 
arrangements by municipalities and other entities (such as 
workers’ compensation self-insurance programs 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 obtain-
ing reinsurance coverage for insurer deductibles or in-
sured losses retained by insurers pursuant to this sec-
tion, 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 pursuant 
to this section shall not be reduced by reinsurance 
paid or payable to an insurer from other sources, ex-
cept that recoveries from such other sources, taken to-
gether with financial assistance for the Transition Pe-
riod or a Program Year provided pursuant to this 
section, may not exceed the aggregate amount of the 
insurer’s insured losses for such period. If such recov-
eries and financial assistance for the Transition Pe-
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riod or a Program Year exceed such aggregate amount 
of insured losses for that period and there is no agree-
ment between the insurer and any reinsurer to the 
contrary, an amount in excess of such aggregate in-
sured losses shall be returned to the Secretary.’’; 
(2) in section 104(a)— 
(A) in paragraph (1), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (2), by striking the period 
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 necessary 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 ad-
ditional Program Year thereafter, based upon the per-
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centage change in an appropriate index during the 
12-month period preceding such Program Year, each 
of the following amounts (as such amount may have 
been previously adjusted): 
‘‘(A) 
The 
dollar 
amount 
in 
section 
102(1)(B)(ii) (relating to act of terrorism). 
‘‘(B) 
The 
dollar 
amount 
in 
section 
102(11)(J) (relating to aggregate industry in-
sured losses in a previously impacted area). 
‘‘(C) The dollar amounts in subparagraphs 
(A) and (B) of section 103(e)(1) (relating to lim-
itation 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). 
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‘‘(I) 
The 
dollar 
amounts 
in 
section 
103(e)(7) (relating to insurance marketplace ag-
gregate retention amount). 
‘‘(J) 
The 
dollar 
amounts 
in 
section 
109(b)(1)(C) (relating to membership of Commis-
sion on Terrorism Insurance Risk). 
‘‘(2) PUBLICATION.—The Secretary shall make 
the dollar amounts for each additional Program Year, 
as adjusted pursuant to this subsection, publicly 
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 pro-
viding coverage except for NBCR terrorism that 
are filed with any State shall not be subject to 
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prior approval or a waiting period under any 
law of a State that would otherwise be applica-
ble, except that nothing in this title affects the 
ability of any State to invalidate a rate as exces-
sive, inadequate, or unfairly discriminatory, 
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 period 
under any law of a State that would otherwise 
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 
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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 period 
under any law of a State that would otherwise 
be applicable, except that nothing in this title af-
fects 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 enter-
ing into an arrangement with another insurer to make 
available coverage for any portion of insured losses to fulfill 
the requirements of section 103(c). The Secretary shall de-
velop, in consultation with the NAIC, minimum financial 
solvency standards and other standards the Secretary deter-
mines appropriate with respect to such arrangements. Noth-
ing in this subsection shall be construed to establish any 
legal partnership.’’; and 
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