‘‘(I) for the second additional 
Program Year, shall be 3.5 percent; 
and 
‘‘(II) for each succeeding Pro-
gram Year thereafter, shall be 50 
basis points greater than the percent-
age applicable to the preceding addi-
tional Program Year; and 
‘‘(ii) with respect to group life insur-
ance, the value of an insurer’s amount at 
risk over the calendar year immediately 
preceding such Program Year, multiplied 
by a percentage, which— 
‘‘(I) for the first additional Pro-
gram Year, shall be 0.00614 percent; 
and 
‘‘(II) for each succeeding Pro-
gram Year thereafter, shall be 0.088 
basis point greater than the percent-
age applicable to the preceding addi-
tional Program Year; 
‘‘(J) notwithstanding subparagraph (G)(i), 
if aggregate industry insured losses resulting 
from a certified act of terrorism exceed 
$1,000,000,000, for any insurer that sustains
insured losses resulting from such act of ter-
rorism, the value of such insurer’s direct earned 
premiums over the calendar year immediately 
preceding the Program Year, multiplied by a 
percentage, which— 
‘‘(i) for the first additional Program 
Year shall be 5 percent; and 
‘‘(ii) for each additional Program 
Year thereafter, shall be 50 basis points 
greater than the percentage applicable to 
the preceding additional Program Year, ex-
cept that if an act of terrorism occurs dur-
ing any additional Program Year that re-
sults in aggregate industry insured losses 
exceeding $1,000,000,000, the percentage 
for the succeeding additional Program 
Year shall be 5 percent and the increase 
under this clause shall apply to additional 
Program Years thereafter; 
except that for purposes of determining under 
this subparagraph whether aggregate industry 
insured losses exceed $1,000,000,000, the Sec-
retary may combine insured losses resulting 
from two or more certified acts of terrorism oc-
curring during such Program Year in the same
geographic area (with such area determined by 
the Secretary), in which case such insurer shall 
be permitted to combine insured losses resulting 
from such acts of terrorism for purposes of sat-
isfying its insurer deductible under this sub-
paragraph; and except that the insurer deduct-
ible under this subparagraph shall apply only 
with respect to compensation of insured losses 
resulting from such certified act, or combined 
certified acts, and that for purposes of com-
pensation of any other insured losses occurring 
in the same Program Year, the insurer deduct-
ible determined under subparagraph (G)(i) or 
(I) shall apply; and 
‘‘(K) for the fifth additional Program Year 
and any Additional Program year thereafter, 
notwithstanding subparagraph (I)(i), if aggre-
gate industry insured losses resulting from a 
certified 
act 
of 
NBCR 
terrorism 
exceed 
$1,000,000,000, for any insurer that sustains 
insured losses resulting from such act of NBCR 
terrorism, the value of such insurer’s direct 
earned premiums over the calendar year imme-
diately preceding the Program Year, multiplied 
by a percentage, which—
‘‘(i) for the fifth additional Program 
Year shall be 5 percent; and 
‘‘(ii) for each additional Program 
Year thereafter, shall be 50 basis points 
greater than the percentage applicable to 
the preceding additional Program Year, ex-
cept that if an act of NBCR terrorism oc-
curs during the fifth additional Program 
Year or any additional Program Year 
thereafter that results in aggregate indus-
try 
insured 
losses 
exceeding 
$1,000,000,000, the percentage for the 
succeeding additional Program Year shall 
be 5 percent and the increase under this 
clause shall apply to additional Program 
Years thereafter; 
except that for purposes of determining under 
this subparagraph whether aggregate industry 
insured losses exceed $1,000,000,000, the Sec-
retary may combine insured losses resulting 
from two or more certified acts of NBCR ter-
rorism occurring during such Program Year in 
the same geographic area (with such area deter-
mined by the Secretary), in which case such in-
surer shall be permitted to combine insured
losses resulting from such acts of NBCR ter-
rorism for purposes of satisfying its insurer de-
ductible under this subparagraph; and except 
that the insurer deductible under this subpara-
graph shall apply only with respect to com-
pensation of insured losses resulting from such 
certified act, or combined certified acts, and 
that for purposes of compensation of any other 
insured losses occurring in the same Program 
Year, the insurer deductible determined under 
subparagraph (I)(i) shall apply. 
‘‘(12) NAIC.—The term ‘NAIC’ means the Na-
tional Association of Insurance Commissioners. 
‘‘(13) NBCR TERRORISM.—The term ‘NBCR 
terrorism’ means an act of terrorism that involves or 
triggers nuclear, biological, chemical, or radiological 
reactions, releases, or contaminations, but only if 
any aggregate industry insured losses that result 
from such reactions, releases, or contaminations ex-
ceed the amount set forth in paragraph (1)(B)(ii). 
‘‘(14) PERSON.—The term ‘person’ means any 
individual, business or nonprofit entity (including 
those organized in the form of a partnership, limited 
liability company, corporation, or association), trust
or estate, or a State or political subdivision of a 
State or other governmental unit. 
‘‘(15) PROGRAM.—The term ‘Program’ means 
the Terrorism Insurance Program established by 
this title. 
‘‘(16) PROGRAM YEARS.— 
‘‘(A) TRANSITION
PERIOD.—The term 
‘Transition Period’ means the period beginning 
on the date of enactment of this Act and ending 
on December 31, 2002. 
‘‘(B) PROGRAM YEAR 1.—The term ‘Pro-
gram Year 1’ means the period beginning on 
January 1, 2003 and ending on December 31, 
2003. 
‘‘(C) PROGRAM YEAR 2.—The term ‘Pro-
gram Year 2’ means the period beginning on 
January 1, 2004 and ending on December 31, 
2004. 
‘‘(D) PROGRAM YEAR 3.—The term ‘Pro-
gram Year 3’ means the period beginning on 
January 1, 2005 and ending on December 31, 
2005. 
‘‘(E) PROGRAM YEAR 4.—The term ‘Pro-
gram Year 4’ means the period beginning on
January 1, 2006 and ending on December 31, 
2006. 
‘‘(F) PROGRAM YEAR 5.—The term ‘Pro-
gram Year 5’ means the period beginning on 
January 1, 2007 and ending on December 31, 
2007. 
‘‘(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 
period shall begin on January 1 and end on De-
cember 31 of the same calendar year. 
‘‘(17) PROPERTY AND CASUALTY INSURANCE.— 
The term ‘property and casualty insurance’— 
‘‘(A) means commercial lines of property 
and casualty insurance, including excess insur-
ance, workers’ compensation insurance, and di-
rectors and officers liability insurance; and 
‘‘(B) does not include— 
‘‘(i) Federal crop insurance issued or 
reinsured under the Federal Crop Insur-
ance Act (7 U.S.C. 1501 et seq.), or any 
other type of crop or livestock insurance 
that is privately issued or reinsured;
‘‘(ii) private mortgage insurance (as 
that term is defined in section 2 of the 
Homeowners Protection Act of 1998 (12 
U.S.C. 4901)) or title insurance; 
‘‘(iii) financial guaranty insurance 
issued by monoline financial guaranty in-
surance corporations; 
‘‘(iv) insurance for medical mal-
practice; 
‘‘(v) health or life insurance, including 
group life insurance; 
‘‘(vi) flood insurance provided under 
the National Flood Insurance Act of 1968 
(42 U.S.C. 4001 et seq.); 
‘‘(vii) reinsurance or retrocessional re-
insurance; 
‘‘(viii) commercial automobile insur-
ance; 
‘‘(ix) burglary and theft insurance; 
‘‘(x) surety insurance; or 
‘‘(xi) professional liability insurance. 
‘‘(18) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of the Treasury. 
‘‘(19) STATE.—The term ‘State’ means any 
State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, the Common-
wealth of the Northern Mariana Islands, American 
Samoa, Guam, each of the United States Virgin Is-
lands, and any territory or possession of the United 
States. 
‘‘(20) UNITED
STATES.—The term ‘United 
States’ means the several States, and includes the 
territorial sea and the continental shelf of the 
United States, as those terms are defined in the Vio-
lent Crime Control and Law Enforcement Act of 
1994 (18 U.S.C. 2280, 2281). 
‘‘(21) RULE OF CONSTRUCTION FOR DATES.— 
With respect to any reference to a date in this title, 
such day shall be construed— 
‘‘(A) to begin at 12:01 a.m. on that date; 
and 
‘‘(B) to end at midnight on that date. 
‘‘SEC. 103. TERRORISM INSURANCE PROGRAM. 
‘‘(a) ESTABLISHMENT OF PROGRAM.— 
‘‘(1) IN GENERAL.—There is established in the 
Department of the Treasury the Terrorism Insur-
ance Program. 
‘‘(2) AUTHORITY
OF
THE
SECRETARY.—Not-
withstanding any other provision of State or Federal 
law, the Secretary shall administer the Program,
and, subject only to subsection (h)(1), shall pay the 
Federal share of compensation for insured losses in 
accordance with subsection (e). 
‘‘(3) MANDATORY PARTICIPATION.—Each entity 
that meets the definition of an insurer under this 
title shall participate in the Program. 
‘‘(4) NBCR EXEMPTION FOR CERTAIN INSUR-
ERS.—Notwithstanding the requirements of para-
graph (3): 
‘‘(A) ELIGIBILITY.—Upon request, the 
Secretary may provide an exemption from the 
requirements of subparagraph (B) of subsection 
(c)(1) in the Program to an entity that other-
wise meets the definition of an insurer under 
this title if— 
‘‘(i) such insurer’s direct earned pre-
mium is less than $50,000,000 in the cal-
endar year immediately preceding the cur-
rent additional Program Year; and 
‘‘(ii) the Secretary makes the deter-
mination set forth in subparagraph (D). 
‘‘(B) INSURER GROUP.—For purposes of 
subparagraph (A)(i), the direct earned premium 
of any insurer shall include the direct earned 
premiums of every affiliate of that insurer.
‘‘(C) INFORMATION AND CONSULTATION.— 
Any insurer requesting an exemption pursuant 
to this paragraph shall provide any information 
the Secretary may require to establish its eligi-
bility for the exemption. In developing stand-
ards for evaluating eligibility for the exemption 
under this paragraph, the Secretary shall con-
sult with the NAIC. 
‘‘(D) DETERMINATION.—In making any 
determination regarding eligibility for exemp-
tion under this paragraph, the Secretary shall 
consult with the insurance commissioner of the 
State or other appropriate State regulatory au-
thority where the insurer is domiciled and de-
termine whether the insurer has demonstrated 
that it would become insolvent if it were re-
quired, in the event of an act of NBCR ter-
rorism, to satisfy— 
‘‘(i) its deductible and maximum ap-
plicable share above the deductible pursu-
ant 
to 
sections 
102(11)(I) 
and 
103(e)(1)(B), respectively, for such act of 
NBCR terrorism resulting in aggregate in-
dustry insured losses above the trigger es-
tablished in section 103(e)(1)(C); or
‘‘(ii) its maximum payment obliga-
tions for insured losses for such act of 
NBCR terrorism resulting in aggregate in-
dustry insured losses below the trigger es-
tablished in section 103(e)(1)(C). 
‘‘(E) 
WORKERS’ 
COMPENSATION
AND 
OTHER
COMPULSORY
INSURANCE
LAW.—In 
granting an exemption under this paragraph, 
the Secretary shall not approve any request for 
exemption with regard to State workers’ com-
pensation insurance or other compulsory insur-
ance law requiring coverage of the risks de-
scribed in subparagraph (B) of subsection 
(c)(1). 
‘‘(F) EXEMPTION PERIOD.— 
‘‘(i) IN
GENERAL.—Any exemption 
granted to an insurer by the Secretary 
under this paragraph shall have a duration 
of not longer than 2 years. 
‘‘(ii) 
EXTENSION.—Notwithstanding 
clause (i), the Secretary may, upon appli-
cation by an insurer granted an exemption 
under this paragraph, extend such exemp-
tion for additional periods of not longer 
than 2 years.
‘‘(b) CONDITIONS
FOR FEDERAL PAYMENTS.—No 
payment may be made by the Secretary under this section 
with respect to an insured loss that is covered by an in-
surer, unless— 
‘‘(1) there is enacted a joint resolution for pay-
ment of Federal compensation with respect to the 
act of terrorism that resulted in the insured loss; 
‘‘(2) the person that suffers the insured loss, or 
a person acting on behalf of that person, files a 
claim with the insurer; 
‘‘(3) the insurer provides clear and conspicuous 
disclosure to the policyholder of the premium 
charged for insured losses covered by the Program 
(including the additional premium, if any, charged 
for the coverage for insured losses resulting from 
acts of NBCR terrorism as made available pursuant 
to subsection (c)(1)(B)) and the Federal share of 
compensation for insured losses under the Pro-
gram— 
‘‘(A) in the case of any policy that is 
issued before the date of enactment of this Act, 
not later than 90 days after that date of enact-
ment; 
‘‘(B) in the case of any policy that is 
issued within 90 days of the date of enactment
of this Act, at the time of offer, purchase, and 
renewal of the policy; and 
‘‘(C) in the case of any policy that is 
issued more than 90 days after the date of en-
actment of this Act, on a separate line item in 
the policy, at the time of offer, purchase, and 
renewal of the policy; 
‘‘(4) the insurer processes the claim for the in-
sured loss in accordance with appropriate business 
practices, and any reasonable procedures that the 
Secretary may prescribe; and 
‘‘(5) the insurer submits to the Secretary, in ac-
cordance with such reasonable procedures as the 
Secretary may establish— 
‘‘(A) a claim for payment of the Federal 
share of compensation for insured losses under 
the Program; 
‘‘(B) written certification— 
‘‘(i) of the underlying claim; and 
‘‘(ii) of all payments made for insured 
losses; and 
‘‘(C) certification of its compliance with 
the provisions of this subsection. 
‘‘(c) MANDATORY AVAILABILITY.—
‘‘(1) AVAILABILITY OF COVERAGE FOR INSURED 
LOSSES.—Subject to paragraph (3), during each 
Program Year, each entity that meets the definition 
of an insurer under section 102 shall make avail-
able— 
‘‘(A) in all of its insurance policies for cov-
ered lines, coverage for insured losses that does 
not differ materially from the terms, amounts, 
and other coverage limitations applicable to 
losses arising from events other than acts of 
terrorism; and 
‘‘(B) in insurance policies for covered lines 
for which the coverage described in subpara-
graph (A) is provided, exceptions to the pollu-
tion and nuclear hazard exclusions of such poli-
cies that render such exclusions inapplicable 
only as to insured losses arising from acts of 
NBCR terrorism. 
‘‘(2) ALLOWABLE EXCLUSIONS IN OTHER COV-
ERAGE.—Subject to paragraph (3) and notwith-
standing any other provision of Federal or State 
law, including any State workers’ compensation and 
other compulsory insurance law, if a person elects 
not to purchase an insurance policy with the cov-
erage described in paragraph (1)—
‘‘(A) an insurer may exclude coverage for 
all losses from acts of terrorism including acts 
of NBCR terrorism, except for State workers’ 
compensation and other compulsory insurance 
law requiring coverage of the risks described in 
subsection (c)(1) (unless permitted by State 
law); or 
‘‘(B) an insurer may offer other options 
for coverage that differ materially from the 
terms, amounts, and other coverage limitations 
applicable 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 re-
newed on or after such date. 
‘‘(4) AVAILABILITY OF LIFE INSURANCE WITH-
OUT REGARD TO LAWFUL FOREIGN TRAVEL.—Dur-
ing 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 Ter-
rorism 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, cov-
erage that neither considers past, nor precludes fu-
ture, lawful foreign travel by the person insured, and 
shall not decline such coverage based on past or fu-
ture, lawful foreign travel by the person insured or 
charge a premium for such coverage that is excessive 
and not based on a good faith actuarial analysis, ex-
cept 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 foreign travel to 
occur within 12 months of such inception 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 
‘‘(iii)(I) that the insurer has specifi-
cally designated in the terms of the life in-
surance policy at the inception of the pol-
icy or at renewal, as applicable; and 
‘‘(II) with respect to which the insurer 
has made a good-faith determination 
that— 
‘‘(aa) a serious fraudulent situa-
tion exists which is ongoing; and 
‘‘(bb) the credibility of informa-
tion by which the insurer can verify 
the death of the insured person is 
substantially compromised; 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 in-
ception of the policy or at renewal, as applica-
ble.
‘‘(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. 
‘‘(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 
separate insurer, and shall report to each pri-
vate sector insurance participant its share of 
the insured losses of the entity, which shall be 
included in each private sector insurer’s insured 
losses. 
‘‘(3) TREATMENT OF PARTICIPATION IN CER-
TAIN ENTITIES.—Any insurer that participates in 
sharing profits and losses of a State residual market
insurance entity shall include in its calculations of 
premiums 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 
paid by the Secretary, subject to subsection 
(h)(1), 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) exceed 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 
industry insured losses during 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), result in aggregate industry in-
sured losses during such Program Year ex-
ceeding $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, 
subject to subsection (h)(1), for insured 
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 
percentage shall be— 
‘‘(aa) 85 percent of such ag-
gregate industry qualified NBCR 
losses 
of 
less 
than 
$10,000,000,000;