quire any State insurance regulatory authority to 
undertake making determinations under this para-
graph.’’. 
SEC. 7. TERRORISM LOSS RISK-SPREADING PREMIUMS 
AMOUNT. 
(a) IN GENERAL.—Subparagraph (C) of section 
103(e)(7) (15 U.S.C. 6701 note) is amended— 
(1) by striking ‘‘subparagraphs (A) through 
(E)’’ and inserting ‘‘subparagraphs (A) through 
(F)’’; and 
(2) by striking ‘‘133 percent’’ and inserting 
‘‘150 percent’’. 
(b) APPLICABILITY.—The amendment 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, 2016, and Program Years 
thereafter. 
SEC. 8. INCREASE OF AGGREGATE RETENTION AMOUNT; 
MANDATORY RECOUPMENT. 
(a) IN GENERAL.—Paragraph (6) of section 103(e) 
(15 U.S.C. 6701 note) is amended— 
(1) in subparagraph (D)(ii), by striking ‘‘and’’ 
at the end; 
(2) in subparagraph (E)— 
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(A) in the matter preceding clause (I), by 
inserting ‘‘through the Program Year ending on 
December 31, 2015’’ before the comma; and 
(B) in clause (ii), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) for the Program Year beginning Jan-
uary 1, 2016, and each Program Year there-
after, the lesser of— 
‘‘(I) the amount that is equal to the 
sum of the insurer deductibles for the Pro-
gram Year for all insurers participating in 
the Program; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such Pro-
gram Year.’’. 
(b) MANDATORY RECOUPMENT.— 
(1) AMOUNT; TIMING.—Paragraph (7) of sec-
tion 103(e) (15 U.S.C. 6701 note) is amended— 
(A) by striking subparagraphs (A) and (B) 
and inserting the following new subparagraph: 
‘‘(A) 
MANDATORY
RECOUPMENT 
AMOUNT.—For purposes of this paragraph, the 
mandatory recoupment amount for each of the 
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periods referred to in subparagraphs (A) 
through (F) of paragraph (6) shall be equal to 
the lesser of— 
‘‘(I) the aggregate amount, for all in-
surers, of insured losses during such period 
that are compensated by the Federal Gov-
ernment pursuant to paragraph (1); or 
‘‘(ii) the insurance marketplace aggre-
gate retention amount under paragraph 
(6) for such period.’’; 
(B) in subparagraph (E)(I)(III), by strik-
ing ‘‘after January 1, 2012’’ and inserting ‘‘be-
fore December 31, 2014’’; and 
(C) by redesignating subparagraphs (C), 
(D), (E) (as so amended), and (F) as subpara-
graphs (B), (C), (D), and (E), respectively. 
(2) 
CONFORMING
AMENDMENTS.—Section 
103(e) (15 U.S.C. 6701 note) is amended— 
(A) in paragraph (7)(D)(I), as so redesig-
nated by paragraph (1)(B) of this subsection, 
by striking ‘‘subparagraph (C)’’ and inserting 
‘‘subparagraph (B)’’; and 
(B) in paragraph (8)— 
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(I) in subparagraph (C), by striking 
‘‘paragraph (7)(D)’’ and inserting ‘‘para-
graph (7)(C)’’; and 
(ii) in subparagraph (D)(ii), by strik-
ing ‘‘paragraph (7)(E)’’ and inserting 
‘‘paragraph (7)(D)’’. 
SEC. 9. TERRORISM LOSS RISK-SPREADING PREMIUM. 
(a) IN GENERAL.—Section 103(e) (15 U.S.C. 6701 
note) is amended by striking paragraph (8) and inserting 
the following new paragraph: 
‘‘(8) TERRORISM
LOSS
RISK-SPREADING
PRE-
MIUMS.— 
‘‘(A) ESTABLISHMENT.—After an act of 
terrorism, the Secretary shall, to the extent pro-
vided in subparagraph (7)(C), and may, to the 
extent provided in subparagraph (7)(D), estab-
lish terrorism loss risk-spreading premiums, 
which shall be imposed as a policyholder pre-
mium surcharge on property and casualty in-
surance policies for all participating insurers in 
force after the date of such establishment. 
‘‘(B) COLLECTION.—The Secretary shall 
provide for insurers to collect terrorism loss 
risk-spreading 
premiums 
and 
remit 
such 
amounts collected to the Secretary. 
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‘‘(C) DETERMINATION OF PREMIUMS.—In 
determining the method and manner of impos-
ing terrorism loss risk-spreading premiums, in-
cluding the amount of such premiums, the Sec-
retary shall— 
‘‘(I) impose such terrorism loss risk- 
spreading premiums beginning with such 
period of coverage during the year as the 
Secretary determines appropriate, but shall 
commence imposition of such premiums 
not later than 18 months after the occur-
rence of the act of terrorism for which 
such premiums are imposed; 
‘‘(ii) base any terrorism loss risk- 
spreading premium on a percentage of the 
premium amount charged for property and 
casualty insurance coverage under the pol-
icy; and 
‘‘(iii) 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-
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ability of lease space and commercial 
insurance within urban areas; 
‘‘(II) the risk factors related to 
rural areas and smaller commercial 
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. 
‘‘(D) PERCENTAGE
LIMITATION.—A ter-
rorism loss risk-spreading premium collected on 
a discretionary basis pursuant to paragraph 
(7)(D) shall not be less than, on an annual 
basis, the amount equal to 3 percent of the pre-
mium charged for property and casualty insur-
ance coverage under the policy. 
‘‘(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, 
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