‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the Federal share of com-
pensation under the Program to be paid by the 
Secretary for insured losses of an insurer dur-
ing each Program Year shall be equal to that 
portion of the amount of such insured losses for 
each covered line of insurance that exceeds the 
applicable insurer deductible required to be paid 
during such Program Year, multiplied by a per-
centage based on aggregate industry insured 
losses for a Program Year, which shall be as 
follows: 
‘‘(i) 80 percent of the aggregate in-
dustry 
insured 
losses 
of 
less 
than 
$10,000,000,000; 
‘‘(ii) 85 percent of the aggregate in-
dustry 
insured 
losses 
between 
$10,000,000,000 and $20,000,000,000; 
‘‘(iii) 90 percent of the aggregate in-
dustry 
insured 
losses 
between 
$20,000,000,000 
and 
$40,000,000,000; 
and 
‘‘(iv) 95 percent of the aggregate in-
dustry insured losses above industry losses 
above $40,000,000,000;
and shall be prorated by insurer based on each 
insurer’s percentage of the aggregate industry 
insured losses for that Program Year. 
‘‘(B) PROGRAM TRIGGER.—No compensa-
tion shall be paid by the Secretary under sub-
section (a) unless the aggregate industry in-
sured losses exceed— 
‘‘(i) $50,000,000, with respect to in-
sured losses occurring in Program Year 4; 
‘‘(ii) $100,000,000, with respect to in-
sured losses occurring in the Additional 
Program Year beginning on January 1, 
2007; 
‘‘(iii) 
an 
additional 
cumulative 
$100,000,000, with respect to each succes-
sive Additional Program Year that cov-
erage is provided under this program; 
except that the applicable Program Trigger 
amount shall be reduced by $10,000,000 for 
each $1,000,000,000 in insured losses occurring 
in any preceding year, provided that the Pro-
gram Trigger shall not be reduced below 
$50,000,000 for any year. 
‘‘(C) PROHIBITION ON DUPLICATIVE COM-
PENSATION.—The Federal share of compensa-
tion for insured losses under the Program shall 
be reduced by the amount of compensation pro-
vided by the Federal Government to any person 
under any other Federal program for those in-
sured losses. 
‘‘(2) TRIA CAPITAL RESERVE FUNDS.— 
‘‘(A) ESTABLISHMENT.—Any insurer may 
establish a TRIA Capital Reserve Fund (in this 
section referred to as a ‘CRF’) in which it may 
hold funds in a fiduciary capacity on behalf of 
the Secretary. 
‘‘(B) FUNDING.—An insurer may fund a 
CRF by making an election, in advance, to 
treat some or all of the premiums it has dis-
closed pursuant to section 103(b)(2) as TRIA 
program fee charges imposed by the Secretary. 
Any such premiums for which such an election 
has been made must be maintained in seg-
regated accounts in a fiduciary capacity on be-
half of the Secretary. Such funds may be in-
vested in any otherwise legally permissible man-
ner but all interest, dividends, and capital accu-
mulations also shall be retained in such seg-
regated accounts on behalf of the Secretary.
‘‘(C) USE.—Funds from a CRF shall be 
collected and used by the Secretary to offset, in 
whole or in part, the Federal share of com-
pensation provided to all insurers under the 
Program as provided for in paragraph (1), ex-
cept that an insurer may first use the funds in 
a CRF of that insurer to satisfy any one or 
more of the following: 
‘‘(i) The applicable insurer deductibles 
for the insurer. 
‘‘(ii) The portion of the insurer’s 
losses that exceed the insurer deductible 
but are not compensated by the Federal 
share pursuant to paragraph (1). 
‘‘(iii) The insurer’s obligations to pay 
for insured losses if the program trigger 
established in paragraph (1)(B) is not sat-
isfied. 
‘‘(iv) Any risk sharing obligations the 
insurer may have under any agreements 
made pursuant to or in accordance with 
paragraph (3). 
‘‘(D) TERMINATION.— 
‘‘(i) TERMINATION
OF
PROGRAM.— 
Upon termination of the Program under