I 
113TH CONGRESS 
2D SESSION 
H. R. 4871 
To reauthorize the Terrorism Risk Insurance Act of 2002, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2014 
Mr. NEUGEBAUER (for himself and Mr. WESTMORELAND) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To reauthorize the Terrorism Risk Insurance Act of 2002, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘TRIA Reform Act of 2014’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. References. 
Sec. 3. Extension of program. 
Sec. 4. Certification of acts of terrorism. 
Sec. 5. Separate treatment of conventional terrorism from NBCR terrorism. 
Sec. 6. Availability of coverage. 
Sec. 7. Terrorism loss risk-spreading premiums amount. 
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Sec. 8. Increase of aggregate retention amount; mandatory recoupment. 
Sec. 9. Terrorism loss risk-spreading premium. 
Sec. 10. Risk-sharing mechanisms. 
Sec. 11. Reporting of terrorism insurance data. 
Sec. 12. Delivery of notices to policyholders. 
Sec. 13. Definition of control. 
Sec. 14. Annual study of small insurer market competitiveness. 
Sec. 15. CBO and OMB studies regarding budgeting for costs of Federal insur-
ance programs. 
Sec. 16. GAO study on upfront premiums and capital reserve fund. 
SEC. 2. REFERENCES. 
Except as otherwise expressly provided, wherever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Terrorism Risk Insurance 
Act of 2002 (15 U.S.C. 6701 note). 
SEC. 3. EXTENSION OF PROGRAM. 
(a) IN GENERAL.—Subsection (a) of section 108 (15 
U.S.C. 6701 note) is amended by striking ‘‘December 31, 
2014’’ and inserting ‘‘December 31, 2019’’. 
(b) PROGRAM YEARS.—Subparagraph (G) of section 
102(11) (15 U.S.C. 6701 note) is amended by striking 
‘‘2014’’ and inserting ‘‘2019’’. 
SEC. 4. CERTIFICATION OF ACTS OF TERRORISM. 
(a) IN GENERAL.—Paragraph (1) of section 102 (15 
U.S.C. 6701 note) is amended— 
(1) in subparagraph (A), in the matter pre-
ceding clause (I), by striking ‘‘concurrence with the 
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Secretary of State’’ and inserting ‘‘consultation with 
the Secretary of Homeland Security’’; 
(2) in subparagraph (B)— 
(A) in clause (I), by striking ‘‘; or’’ and in-
serting a period; 
(B) by striking clause (ii); and 
(C) by striking ‘‘terrorism if—’’ and all 
that follows through ‘‘(I) the act’’ and inserting 
‘‘terrorism if the act’’; 
(3) by redesignating subparagraphs (C) and 
(D) as subparagraphs (E) and (G), respectively; 
(4) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) TIMING OF CERTIFICATION.— 
‘‘(I) 
PRELIMINARY
CERTIFICATION 
NOTICE.—The Secretary shall issue a pre-
liminary 
certification 
notice 
indicating 
whether an act is expected to be a certified 
act of terrorism not later than 15 days 
after— 
‘‘(I) the date of the occurrence of 
a potential act of terrorism; or 
‘‘(II) the receipt of a petition 
seeking a preliminary certification de-
cision submitted by an insurer having 
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an in-force policy or policies that 
could be affected by a certification de-
cision. 
‘‘(ii) 
FINAL
CERTIFICATION
NO-
TICE.—Not later than 90 days after the 
date of the occurrence of a potential act of 
terrorism or the receipt of a petition sub-
mitted to the Secretary pursuant to clause 
(I)(II), the Secretary shall issue a final 
certification notice indicating whether an 
act is a certified act of terrorism for pur-
poses of this Act. 
‘‘(iii) RULE
OF
CONSTRUCTION.— 
Failure to issue a preliminary certification 
notice under clause (I) shall not prevent 
the Secretary from issuing a final certifi-
cation notice under clause (ii).’’; and 
(5) by inserting before subparagraph (G), as so 
redesignated by paragraph (3) of this subsection, the 
following new subparagraph: 
‘‘(F) FAILURE
TO
MAKE
DETERMINA-
TION.—If the Secretary does not certify, or 
make a determination not to certify, an act as 
an act of terrorism before the expiration of the 
90-day period beginning on the occurrence of 
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such act, such act shall be treated for purposes 
of this Act as having been determined by the 
Secretary not to be an act of terrorism and 
such determination shall be final and shall not 
be subject to judicial review.’’. 
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply to the Program Year for the Ter-
rorism Insurance Program established by title I of the 
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
note) that begins on January 1, 2015, and Program Years 
thereafter. 
SEC. 5. SEPARATE TREATMENT OF CONVENTIONAL TER-
RORISM FROM NBCR TERRORISM. 
(a) DEFINITION.— 
(1) IN
GENERAL.—Section 102 (15 U.S.C. 
6701 note) is amended— 
(A) in paragraph (1), by inserting after 
subparagraph (C), as added by section 4(a)(4) 
of this Act, the following new subparagraph: 
‘‘(D) ACT
OF
NBCR
TERRORISM.—Each 
certification of an act of terrorism under sub-
paragraph (A) shall include a determination of 
whether such act involves NBCR terrorism.’’; 
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(B) 
by 
redesignating 
paragraphs 
(9) 
through (16) as paragraphs (10) through (17), 
respectively; and 
(C) by inserting after paragraph (8) the 
following new paragraph: 
‘‘(9) 
NBCR 
TERRORISM.—Notwithstanding 
paragraph (1), the term ‘NBCR terrorism’ means an 
act of terrorism to the extent that the insured losses 
involve, regardless of any other cause or event that 
contributes concurrently or in any sequence to such 
insurance loss— 
‘‘(A) an act of terrorism that is carried out 
by means of the dispersal or application of ra-
dioactive material, or through the use of a nu-
clear weapon or device that involves or produces 
a nuclear reaction, nuclear radiation, or radio-
active contamination; 
‘‘(B) the release of radioactive material, 
and it appears that one purpose of the act of 
terrorism was to release such material; 
‘‘(C) an act of terrorism that is carried out 
by means of the dispersal or application of 
pathogenic or poisonous biological or chemical 
material; or 
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(5) by adding at the end the following new 
clause: 
‘‘(ii) shall be equal to— 
‘‘(I) except as provided in sub-
clause (II)— 
‘‘(aa) during the Program 
Year beginning on January 1, 
2016, 84 percent of that portion 
of the amount of such insured 
losses that exceeds the applicable 
insurer deductible required to be 
paid during such Program Year; 
‘‘(bb) during the Program 
Year beginning on January 1, 
2017, 83 percent of that portion 
of the amount of such insured 
losses that exceeds the applicable 
insurer deductible required to be 
paid during such Program Year; 
‘‘(cc) during the Program 
Year beginning on January 1, 
2018, 82 percent of that portion 
of the amount of such insured 
losses that exceeds the applicable 
insurer deductible required to be 
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paid during such Program Year; 
and 
‘‘(dd) during the Program 
Year beginning on January 1, 
2019, 80 percent of that portion 
of the amount of such insured 
losses that exceeds the applicable 
insurer deductible required to be 
paid during such Program Year; 
and 
‘‘(II) in the case of insured losses 
resulting from acts of NBCR ter-
rorism, during the Program Year be-
ginning on January 1, 2016, and each 
Program Year thereafter, 85 percent 
of that portion of the amount of such 
insured losses that exceeds the appli-
cable insurer deductible required to be 
paid during such Program Year.’’. 
(c) PROGRAM TRIGGER.—Subparagraph (B) of sec-
tion 103(e)(1) (15 U.S.C. 6701 note) is amended— 
(1) in the matter preceding clause (I)— 
(A) by striking ‘‘a certified act’’ and in-
serting ‘‘certified acts’’; and 
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(B) by striking ‘‘such certified act’’ and in-
serting ‘‘such certified acts’’; 
(2) in clause (I) by striking ‘‘or’’ at the end; 
(3) in clause (ii), by striking the period at the 
end and inserting the following ‘‘through the Pro-
gram Year ending on December 31, 2015; or’’; 
(4) by adding at the end the following: 
‘‘(iii)(I) except as provided in sub-
clause (II)— 
‘‘(aa) $200,000,000, with respect 
to such insured losses occurring in the 
Program Year beginning on January 
1, 2016; 
‘‘(bb) $300,000,000, with respect 
to such insured losses occurring in the 
Program Year beginning on January 
1, 2017; 
‘‘(cc) $400,000,000, with respect 
to such insured losses occurring in the 
Program Year beginning on January 
1, 2018; and 
‘‘(dd) $500,000,000, with respect 
to such insured losses occurring in the 
Program Year beginning on January 
1, 2019; and 
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‘‘(II) in the case of an act of NBCR 
terrorism, $100,000,000, with respect to 
such insured losses occurring in the Pro-
gram Year beginning on January 1, 2016, 
or any Program Year thereafter.’’; and 
(5) by adding after and below clause (iii), as 
added by paragraph (4) of this subsection, the fol-
lowing: 
‘‘In determining the aggregate industry insured 
losses resulting from certified acts of terrorism 
for purposes of this subparagraph, the Sec-
retary shall not consider any act of terrorism 
resulting, in the aggregate, in less than 
$50,000,000 in insured losses.’’. 
SEC. 6. AVAILABILITY OF COVERAGE. 
Subsection (c) of section 103 (15 U.S.C. 6701 note) 
is amended to read as follows: 
‘‘(c) MANDATORY AVAILABILITY.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), during each Program Year, each entity 
that meets the definition of an insurer under section 
102 shall make available— 
‘‘(A) in all of its property and casualty in-
surance policies, coverage for insured losses; 
and 
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‘‘(B) property and casualty insurance cov-
erage for insured losses that does not differ ma-
terially from the terms, amounts, and other cov-
erage limitations applicable to losses arising 
from events other than acts of terrorism. 
‘‘(2) NO MANDATORY AVAILABILITY FOR SMALL 
INSURERS.—The Secretary shall provide, by regula-
tion and in consultation with State insurance regu-
latory authorities, that paragraph (1) shall not apply 
for a Program Year with respect to any small in-
surer (as such term is defined in such regulations by 
the Secretary) that, at the option of the insurer, 
makes a request for such inapplicability for such 
Program Year to the appropriate State insurance 
regulatory authority for the State in which such in-
surer is domiciled and is determined by such State 
insurance regulatory authority to meet such require-
ments for financial hardship or financial infeasibility 
of providing coverage for insured losses as the Sec-
retary shall establish in such regulations. The in-
surer shall provide notice, in a manner satisfactory 
to the State insurance regulatory authority, inform-
ing affected prospective and current policyholders 
whether such coverage is not provided by the in-
surer. This paragraph may not be construed to re-
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