I 
114TH CONGRESS 
1ST SESSION 
H. R. 26 
To extend the termination date of the Terrorism Insurance Program estab-
lished under the Terrorism Risk Insurance Act of 2002, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 6, 2015 
Mr. NEUGEBAUER (for himself and Mr. GOSAR) introduced the following bill; 
which was referred to the Committee on Financial Services, and in addi-
tion to the Committee on Agriculture, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To extend the termination date of the Terrorism Insurance 
Program established under 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 
‘‘Terrorism Risk Insurance Program Reauthorization Act 
of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title and table of contents. 
TITLE I—EXTENSION OF TERRORISM INSURANCE PROGRAM 
Sec. 101. Extension of Terrorism Insurance Program. 
Sec. 102. Federal share. 
Sec. 103. Program trigger. 
Sec. 104. Recoupment of Federal share of compensation under the program. 
Sec. 105. Certification of acts of terrorism; consultation with Secretary of 
Homeland Security. 
Sec. 106. Technical amendments. 
Sec. 107. Improving the certification process. 
Sec. 108. GAO study. 
Sec. 109. Membership of Board of Governors of the Federal Reserve System. 
Sec. 110. Advisory Committee on Risk-Sharing Mechanisms. 
Sec. 111. Reporting of terrorism insurance data. 
Sec. 112. Annual study of small insurer market competitiveness. 
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 III—BUSINESS RISK MITIGATION AND PRICE 
STABILIZATION 
Sec. 301. Short title. 
Sec. 302. Margin requirements. 
Sec. 303. Implementation. 
TITLE I—EXTENSION OF TER-
RORISM 
INSURANCE 
PRO-
GRAM 
SEC. 101. EXTENSION OF TERRORISM INSURANCE PRO-
GRAM. 
Section 108(a) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended by striking 
‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2020’’. 
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SEC. 102. FEDERAL SHARE. 
Section 103(e)(1)(A) of the Terrorism Risk Insur-
ance Act of 2002 (15 U.S.C. 6701 note) is amended by 
inserting ‘‘and beginning on January 1, 2016, shall de-
crease by 1 percentage point per calendar year until equal 
to 80 percent’’ after ‘‘85 percent’’. 
SEC. 103. PROGRAM TRIGGER. 
Subparagraph (B) of section 103(e)(1) (15 U.S.C. 
6701 note) is amended in the matter preceding clause 
(i)— 
(1) by striking ‘‘a certified act’’ and inserting 
‘‘certified acts’’; 
(2) by striking ‘‘such certified act’’ and insert-
ing ‘‘such certified acts’’; and 
(3) by striking ‘‘exceed’’ and all that follows 
through clause (ii) and inserting the following: ‘‘ex-
ceed— 
‘‘(i) $100,000,000, with respect to 
such insured losses occurring in calendar 
year 2015; 
‘‘(ii) $120,000,000, with respect to 
such insured losses occurring in calendar 
year 2016; 
‘‘(iii) $140,000,000, with respect to 
such insured losses occurring in calendar 
year 2017; 
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‘‘(iv) $160,000,000, with respect to 
such insured losses occurring in calendar 
year 2018; 
‘‘(v) $180,000,000, with respect to 
such insured losses occurring in calendar 
year 2019; and 
‘‘(vi) $200,000,000, with respect to 
such insured losses occurring in calendar 
year 2020 and any calendar year there-
after.’’. 
SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COM-
PENSATION UNDER THE PROGRAM. 
Section 103(e) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended— 
(1) by amending paragraph (6) to read as fol-
lows: 
‘‘(6) INSURANCE
MARKETPLACE
AGGREGATE 
RETENTION AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (7), the insurance marketplace aggregate 
retention amount shall be the lesser of— 
‘‘(i) $27,500,000,000, as such amount 
is revised pursuant to this paragraph; and 
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miums in an amount equal to 133 percent’’ 
and inserting ‘‘, terrorism loss risk-spread-
ing premiums in an amount equal to 140 
percent’’; and 
(ii) by inserting ‘‘as calculated under 
subparagraph 
(A)’’ 
after 
‘‘mandatory 
recoupment amount’’; and 
(D) in subparagraph (E)(i)— 
(i) in subclause (I)— 
(I) by striking ‘‘2010’’ and in-
serting ‘‘2017’’; and 
(II) by striking ‘‘2012’’ and in-
serting ‘‘2019’’; 
(ii) in subclause (II)— 
(I) by striking ‘‘2011’’ and in-
serting ‘‘2018’’; 
(II) by striking ‘‘2012’’ and in-
serting ‘‘2019’’; and 
(III) by striking ‘‘2017’’ and in-
serting ‘‘2024’’; and 
(iii) in subclause (III)— 
(I) by striking ‘‘2012’’ and in-
serting ‘‘2019’’; and 
(II) by striking ‘‘2017’’ and in-
serting ‘‘2024’’. 
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SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CON-
SULTATION WITH SECRETARY OF HOMELAND 
SECURITY. 
Paragraph (1)(A) of section 102 (15 U.S.C. 6701 
note) is amended in the matter preceding clause (i), by 
striking ‘‘concurrence with the Secretary of State’’ and in-
serting ‘‘consultation with the Secretary of Homeland Se-
curity’’. 
SEC. 106. TECHNICAL AMENDMENTS. 
The Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended— 
(1) in section 102— 
(A) in paragraph (3)— 
(i) by redesignating subparagraphs 
(A), (B), and (C) as clauses (i), (ii), and 
(iii), respectively; 
(ii) in the matter preceding clause (i) 
(as so redesignated), by striking ‘‘An enti-
ty has’’ and inserting the following: 
‘‘(A) IN GENERAL.—An entity has’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B) RULE OF CONSTRUCTION.—An enti-
ty, including any affiliate thereof, does not have 
‘control’ over another entity, if, as of the date 
of enactment of the Terrorism Risk Insurance 
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Program Reauthorization Act of 2015, the enti-
ty is acting as an attorney-in-fact, as defined by 
the Secretary, for the other entity and such 
other entity is a reciprocal insurer, provided 
that the entity is not, for reasons other than 
the attorney-in-fact relationship, defined as hav-
ing ‘control’ under subparagraph (A).’’; 
(B) in paragraph (7)— 
(i) by striking subparagraphs (A) 
through (F) and inserting the following: 
‘‘(A) the value of an insurer’s direct 
earned premiums during the immediately pre-
ceding calendar year, multiplied by 20 percent; 
and’’; 
(ii) by redesignating subparagraph 
(G) as subparagraph (B); and 
(iii) in subparagraph (B), as so redes-
ignated by clause (ii)— 
(I) by striking ‘‘notwithstanding 
subparagraphs (A) through (F), for 
the Transition Period or any Program 
Year’’ and inserting ‘‘notwithstanding 
subparagraph (A), for any calendar 
year’’; and 
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(II) by striking ‘‘Period or Pro-
gram Year’’ and inserting ‘‘calendar 
year’’; 
(C) by striking paragraph (11); and 
(D) by redesignating paragraphs (12) 
through (16) as paragraphs (11) through (15), 
respectively; and 
(2) in section 103— 
(A) in subsection (b)(2)— 
(i) in subparagraph (B), by striking ‘‘, 
purchase,’’; and 
(ii) in subparagraph (C), by striking 
‘‘, purchase,’’; 
(B) in subsection (c), by striking ‘‘Pro-
gram Year’’ and inserting ‘‘calendar year’’; 
(C) in subsection (e)— 
(i) in paragraph (1)(A), as previously 
amended by section 102— 
(I) by striking ‘‘the Transition 
Period 
and 
each 
Program 
Year 
through Program Year 4 shall be 
equal to 90 percent, and during Pro-
gram Year 5 and each Program Year 
thereafter’’ and inserting ‘‘each cal-
endar year’’; 
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(II) by striking the comma after 
‘‘80 percent’’; and 
(III) by striking ‘‘such Transition 
Period or such Program Year’’ and 
inserting ‘‘such calendar year’’; 
(ii) in paragraph (2)(A), by striking 
‘‘the period beginning on the first day of 
the Transition Period and ending on the 
last day of Program Year 1, or during any 
Program Year thereafter’’ and inserting ‘‘a 
calendar year’’; and 
(iii) in paragraph (3), by striking ‘‘the 
period beginning on the first day of the 
Transition Period and ending on the last 
day of Program Year 1, or during any 
other Program Year’’ and inserting ‘‘any 
calendar year’’; and 
(D) in subsection (g)(2)— 
(i) by striking ‘‘the Transition Period 
or a Program Year’’ each place that term 
appears and inserting ‘‘the calendar year’’; 
(ii) by striking ‘‘such period’’ and in-
serting ‘‘the calendar year’’; and 
(iii) by striking ‘‘that period’’ and in-
serting ‘‘the calendar year’’. 
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for purposes other than claims through the Pro-
gram; 
(D) how the assessment and collection of 
such upfront premiums could affect take-up 
rates for terrorism risk coverage in different re-
gions and industries and how it could impact 
small businesses and consumers in both metro-
politan and non-metropolitan areas; 
(E) the effect of collecting such upfront 
premiums on insurers both large and small; 
(F) the effect of collecting such upfront 
premiums on the private market for terrorism 
risk reinsurance; and 
(G) the size of any Federal Government 
subsidy insurers may receive through their par-
ticipation in the Program, taking into account 
the Program’s current post-event recoupment 
structure. 
(2) CAPITAL RESERVE FUND.—With respect to 
the capital reserve fund described in subsection 
(a)(2)— 
(A) how the creation of a capital reserve 
fund would affect the Federal Government’s fis-
cal exposure under the Terrorism Risk Insur-
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ance Program and the ability of the Program to 
meet its statutory purposes; 
(B) how a capital reserve fund would im-
pact insurers and reinsurers, including liquidity, 
insurance pricing, and capacity to provide ter-
rorism risk coverage; 
(C) the feasibility of segregating funds at-
tributable to terrorism risk from funds attrib-
utable to other insurance lines; 
(D) how a capital reserve fund would be 
viewed and treated under current Financial Ac-
counting Standards Board accounting rules and 
the tax laws; and 
(E) how a capital reserve fund would affect 
the States’ ability to regulate insurers partici-
pating in the Program. 
(3) INTERNATIONAL PRACTICES.—With respect 
to international markets referred to in paragraphs 
(1) and (2) of subsection (a), how other countries, 
if any— 
(A) have established terrorism insurance 
structures; 
(B) charge premiums or otherwise collect 
funds to pay for the costs of terrorism insur-
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ance structures, including risk and administra-
tive costs; and 
(C) have established capital reserve funds 
to pay for the costs of terrorism insurance 
structures. 
(c) REPORT.—Upon completion of the study required 
under subsection (a), the Comptroller General shall sub-
mit a report on the results of such study to the Committee 
on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of 
Representatives. 
(d) PUBLIC AVAILABILITY.—The study and report 
required under this section shall be made available to the 
public in electronic form and shall be published on the 
website of the Government Accountability Office. 
SEC. 109. MEMBERSHIP OF BOARD OF GOVERNORS OF THE 
FEDERAL RESERVE SYSTEM. 
(a) IN GENERAL.—The first undesignated paragraph 
of section 10 of the Federal Reserve Act (12 U.S.C. 241) 
is amended by inserting after the second sentence the fol-
lowing: ‘‘In selecting members of the Board, the President 
shall appoint at least 1 member with demonstrated pri-
mary experience working in or supervising community 
banks having less than $10,000,000,000 in total assets.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of enactment of 
this Act and apply to appointments made on and after 
that effective date, excluding any nomination pending in 
the Senate on that date. 
SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECH-
ANISMS. 
(a) FINDING; RULE OF CONSTRUCTION.— 
(1) FINDING.—Congress finds that it is desir-
able to encourage the growth of nongovernmental, 
private market reinsurance capacity for protection 
against losses arising from acts of terrorism. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
Act, any amendment made by this Act, or the Ter-
rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
note) shall prohibit insurers from developing risk- 
sharing mechanisms to voluntarily reinsure terrorism 
losses between and among themselves. 
(b) ADVISORY COMMITTEE ON RISK-SHARING MECH-
ANISMS.— 
(1) ESTABLISHMENT.—The Secretary of the 
Treasury shall establish and appoint an advisory 
committee to be known as the ‘‘Advisory Committee 
on Risk-Sharing Mechanisms’’ (referred to in this 
subsection as the ‘‘Advisory Committee’’). 
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(2) DUTIES.—The Advisory Committee shall 
provide advice, recommendations, and encourage-
ment with respect to the creation and development 
of the nongovernmental risk-sharing mechanisms de-
scribed under subsection (a). 
(3) MEMBERSHIP.—The Advisory Committee 
shall be composed of 9 members who are directors, 
officers, or other employees of insurers, reinsurers, 
or capital market participants that are participating 
or that desire to participate in the nongovernmental 
risk-sharing mechanisms described under subsection 
(a), and who are representative of the affected sec-
tors of the insurance industry, including commercial 
property insurance, commercial casualty insurance, 
reinsurance, and alternative risk transfer industries. 
SEC. 111. REPORTING OF TERRORISM INSURANCE DATA. 
Section 104 (15 U.S.C. 6701 note) is amended by 
adding at the end the following new subsection: 
‘‘(h) 
REPORTING
OF
TERRORISM
INSURANCE 
DATA.— 
‘‘(1) AUTHORITY.—During the calendar year 
beginning on January 1, 2016, and in each calendar 
year thereafter, the Secretary shall require insurers 
participating in the Program to submit to the Sec-
retary such information regarding insurance cov-
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insurance producer because that insurance pro-
ducer or any affiliate plans to become, has ap-
plied to become, or is a member of the Associa-
tion; 
‘‘(B) impose any requirement upon a mem-
ber of the Association that it pay fees different 
from those required to be paid to that State 
were it not a member of the Association; or 
‘‘(C) impose any continuing education re-
quirements on any nonresident insurance pro-
ducer that is a member of the Association. 
‘‘(2) STATES OTHER THAN A HOME STATE.— 
No State, other than the home State of a member 
of the Association, shall— 
‘‘(A) impose any licensing, personal or cor-
porate qualifications, education, training, expe-
rience, residency, continuing education, or 
bonding requirement upon a member of the As-
sociation that is different from the criteria for 
membership in the Association or renewal of 
such membership; 
‘‘(B) impose any requirement upon a mem-
ber of the Association that it be licensed, reg-
istered, or otherwise qualified to do business or 
remain in good standing in the State, including 
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