IB 
Union Calendar No. 391 
113TH CONGRESS 
2D SESSION 
H. R. 4871 
[Report No. 113–523] 
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 
JULY 16, 2014 
Additional sponsors: Mr. ROYCE, Mr. BACHUS, Mr. MULVANEY, Mr. 
MCHENRY, Mr. GARRETT, Mr. STIVERS, Mr. FINCHER, Mr. HUIZENGA 
of Michigan, Mr. ROSS, Ms. GRANGER, Mr. OLSON, Mr. CARTER, Mr. 
SMITH of Texas, Mr. SAM JOHNSON of Texas, Mr. THORNBERRY, Mr. 
CULBERSON, Mr. SESSIONS, Mr. CONAWAY, Mr. WEBER of Texas, Mr. 
STOCKMAN, Mr. HALL, Mr. MARCHANT, Mr. DUFFY, Mr. LUETKE-
MEYER, Mr. HURT, Mr. ROGERS of Alabama, and Mr. JOLLY 
JULY 16, 2014 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 17, 2014] 
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A BILL 
To reauthorize the Terrorism Risk Insurance Act of 2002, 
and for other purposes. 
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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. 
TITLE I—TRIA REFORM 
Sec. 101. References. 
Sec. 102. Extension of program. 
Sec. 103. Certification of acts of terrorism. 
Sec. 104. Separate treatment of conventional terrorism from NBCR terrorism. 
Sec. 105. Availability of coverage. 
Sec. 106. Terrorism loss risk-spreading premiums amount. 
Sec. 107. Increase of aggregate retention amount; mandatory recoupment. 
Sec. 108. Terrorism loss risk-spreading premium. 
Sec. 109. Risk-sharing mechanisms. 
Sec. 110. Reporting of terrorism insurance data. 
Sec. 111. Delivery of notices to policyholders. 
Sec. 112. Definition of control. 
Sec. 113. Annual study of small insurer market competitiveness. 
Sec. 114. CBO and OMB studies regarding budgeting for costs of Federal insur-
ance programs. 
Sec. 115. GAO study on upfront premiums and capital reserve fund. 
TITLE II—NATIONAL ASSOCIATION OF REGISTERED AGENTS AND 
BROKERS REFORM 
Sec. 201. Short title. 
Sec. 202. Reestablishment of the National Association of Registered Agents and 
Brokers. 
TITLE I—TRIA REFORM 
SEC. 101. REFERENCES. 
Except as otherwise expressly provided, wherever in 
this title an amendment or repeal is expressed in terms of 
an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or 
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other provision of the Terrorism Risk Insurance Act of 2002 
(15 U.S.C. 6701 note). 
SEC. 102. 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. 103. 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 preceding 
clause (i), by striking ‘‘concurrence with the Secretary 
of State’’ and inserting ‘‘consultation with the Sec-
retary 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; 
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(4) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) TIMING OF CERTIFICATION.— 
‘‘(i) PRELIMINARY CERTIFICATION NO-
TICE.—The Secretary shall issue a prelimi-
nary 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 seek-
ing a preliminary certification deci-
sion submitted by an insurer having 
an in-force policy or policies that could 
be affected by a certification decision. 
‘‘(ii) FINAL CERTIFICATION NOTICE.— 
Not later than 90 days after the date of the 
occurrence of a potential act of terrorism or 
the receipt of a petition submitted to the 
Secretary pursuant to clause (i)(II), the 
Secretary shall issue a final certification 
notice indicating whether an act is a cer-
tified act of terrorism for purposes of this 
Act. 
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‘‘(iii) RULE OF CONSTRUCTION.—Fail-
ure to issue a preliminary certification no-
tice under clause (i) shall not prevent the 
Secretary from issuing a final certification 
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 DETERMINATION.— 
If the Secretary does not certify, or make a deter-
mination not to certify, an act as an act of ter-
rorism before the expiration of the 90-day period 
beginning on the occurrence of such act, such act 
shall be treated for purposes of this Act as hav-
ing 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 re-
view.’’. 
(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 Ter-
rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) 
that begins on January 1, 2015, and Program Years there-
after. 
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SEC. 104. 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 103(a)(4) 
of this Act, the following new subparagraph: 
‘‘(D) ACT OF NBCR TERRORISM.—Each cer-
tification of an act of terrorism under subpara-
graph (A) shall include a determination of 
whether such act involves NBCR terrorism.’’; 
(B) 
by 
redesignating 
paragraphs 
(9) 
through (16) as paragraphs (10) through (17), 
respectively; and 
(C) by inserting after paragraph (8) the fol-
lowing 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-
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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 ter-
rorism was to release such material; 
‘‘(C) an act of terrorism that is carried out 
by means of the dispersal or application of path-
ogenic or poisonous biological or chemical mate-
rial; or 
‘‘(D) the release of pathogenic or poisonous 
biological or chemical material, and it appears 
that one purpose of the act of terrorism was to 
release such material.’’. 
(2) APPLICABILITY.—The amendments made by 
paragraph (1) shall apply to the Program Year for 
the Terrorism 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. 
(b) FEDERAL SHARE OF INSURED LOSS COMPENSA-
TION.—Subparagraph (A) of section 103(e)(1) (15 U.S.C. 
6701 note) is amended— 
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(1) by striking ‘‘The Federal share’’ and insert-
ing ‘‘Subject to subparagraphs (B) and (C), the Fed-
eral share’’; 
(2) by striking ‘‘an insurer during the Transi-
tion period’’ and inserting the following: ‘‘an in-
surer— 
‘‘(i) during the Transition period,’’; 
(3) by inserting ‘‘through the Program Year end-
ing on December 31, 2015,’’ after ‘‘each Program Year 
thereafter’’; 
(4) by striking the period at the end and insert-
ing ‘‘; and’’; and 
(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; 
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‘‘(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 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 terrorism, 
during the Program Year beginning on 
January 1, 2016, and each Program 
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Year thereafter, 85 percent of that por-
tion of the amount of such insured 
losses that exceeds the applicable in-
surer deductible required to be paid 
during such Program Year.’’. 
(c) PROGRAM TRIGGER.—Subparagraph (B) of section 
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 insert-
ing ‘‘certified acts’’; and 
(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 Program 
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 
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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 
‘‘(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 Secretary 
shall not consider any act of terrorism resulting, 
in the aggregate, in less than $50,000,000 in in-
sured losses.’’. 
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‘‘(1) AUTHORITY OF ASSOCIATION MEMBERS.— 
Membership in the Association shall— 
‘‘(A) authorize an insurance producer to 
sell, solicit, or negotiate insurance in any State 
for which the member pays the licensing fee set 
by the State for any line or lines of insurance 
specified in the home State license of the insur-
ance producer, and exercise all such incidental 
powers as shall be necessary to carry out such 
activities, including claims adjustments and set-
tlement to the extent permissible under the laws 
of the State, risk management, employee benefits 
advice, retirement planning, and any other in-
surance-related consulting activities; 
‘‘(B) be the equivalent of a nonresident in-
surance producer license for purposes of author-
izing the insurance producer to engage in the ac-
tivities described in subparagraph (A) in any 
State where the member pays the licensing fee; 
and 
‘‘(C) be the equivalent of a nonresident in-
surance producer license for the purpose of sub-
jecting an insurance producer to all laws, regu-
lations, provisions or other action of any State 
concerning revocation, suspension, or other en-
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entity referred to paragraphs (3) and (4), provided 
that the recipient has the authority and agrees to 
maintain the confidentiality or privileged status of 
the document, material, or other information; 
‘‘(2) limit the sharing of information as required 
under this subtitle with the NAIC or any other non- 
governmental entity, in circumstances under which 
the Association determines that the sharing of such 
information is unnecessary to further the purposes of 
this subtitle; 
‘‘(3) establish a central clearinghouse, or utilize 
the NAIC or another appropriate entity, as deter-
mined by the Association, as a central clearinghouse, 
for use by the Association and the States (including 
State insurance regulators), through which members 
of the Association may disclose their intent to operate 
in 1 or more States and pay the licensing fees to the 
appropriate States; and 
‘‘(4) establish a database, or utilize the NAIC or 
another appropriate entity, as determined by the As-
sociation, as a database, for use by the Association 
and the States (including State insurance regulators) 
for the collection of regulatory information concerning 
the activities of insurance producers. 
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