section 108(a), and subject to the Sec-
retary’s continuing authority under section 
108(b) to adjust claims in satisfaction of 
the Federal share of compensation under 
the Program as provided in paragraph (1) 
of this subsection, 10 percent of each in-
surer’s CRF funds shall be remitted to the 
Secretary and the remainder shall be re-
mitted to the insurer. The Secretary shall 
determine the manner in which the remit-
tance of such income to the insurer shall 
be made. 
‘‘(ii) 
ELIMINATION
OF
FEDERAL 
SHARE
OF
COMPENSATION.—If the Pro-
gram remains in effect but the Federal 
share of compensation for insured losses 
under the Program is eliminated from the 
Program, the CRF funds shall be retained 
and used for the purposes set forth in sub-
paragraph (C) of this paragraph. At such 
time as an insurer’s liability for insured 
losses under the Program terminates, as a 
consequence of the insurer’s termination of 
its business or otherwise, the insurer shall
remit any remaining CRF funds to the 
Secretary. 
‘‘(3) RISK-SHARING MECHANISMS.— 
‘‘(A) 
FINDING; 
RULE
OF
CONSTRUC-
TION.—Congress finds that it is desirable to en-
courage the growth of nongovernmental, private 
market reinsurance capacity for protection 
against losses arising from acts of terrorism. 
Therefore, nothing in this title shall prohibit in-
surers from developing risk-sharing mechanisms 
(including mutual reinsurance facilities and 
agreements) to voluntarily reinsure terrorism 
losses between and among themselves that are 
not subject to reimbursement under this section 
103. 
‘‘(B) ESTABLISHMENT OF ADVISORY COM-
MITTEE.—The Secretary shall appoint an Advi-
sory Committee to— 
‘‘(i) encourage the creation and devel-
opment of such mechanisms; 
‘‘(ii) assist the Secretary and be avail-
able to administer such mechanisms; and 
‘‘(iii) develop articles of incorporation, 
bylaws, and a plan of operation for any
long-term reinsurance facility authorized or 
created in the future. 
‘‘(C) MEMBERSHIP.—The Advisory Com-
mittee shall be composed of nine members who 
are directors, officers, or other employees of in-
surers that are participating or that desire to 
participate in such mechanisms, and who are 
representative of the affected sectors of the in-
surance industry. In making these appoint-
ments, the Secretary shall solicit major trade 
associations of the insurance industry to nomi-
nate lists of qualified individuals representative 
of the commercial property insurance, commer-
cial casualty insurance, group life insurance, 
and reinsurance industries. 
‘‘(4) CAP ON ANNUAL LIABILITY.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1) or any other provision of Federal or 
State law, if the aggregate insured losses exceed 
$100,000,000,000 during any Program Year 
(until such time as the Congress may act other-
wise with respect to such losses)— 
‘‘(i) the Secretary shall not make any 
payment under this title for any portion of
the amount of such losses that exceeds 
$100,000,000,000; and 
‘‘(ii) no insurer that has met its in-
surer deductible shall be liable for the pay-
ment of any portion of that amount that 
exceeds $100,000,000,000. 
‘‘(B) INSURER SHARE.—For purposes of 
subparagraph (A), the Secretary shall deter-
mine the pro rata share of insured losses to be 
paid by each insurer that incurs insured losses 
under the Program. 
‘‘(5) NOTICE
TO
CONGRESS.—The Secretary 
shall notify the Congress if estimated or actual ag-
gregate insured losses exceed $100,000,000,000 dur-
ing during any Program Year and the Congress 
shall determine the procedures for and the source of 
any payments for such excess insured losses. 
‘‘(6) FINAL
NETTING.—The Secretary shall 
have sole discretion to determine the time at which 
claims relating to any insured loss or act of ter-
rorism shall become final. 
‘‘(7) DETERMINATIONS
FINAL.—Any deter-
mination of the Secretary under this subsection shall 
be final, unless expressly provided, and shall not be 
subject to judicial review.
‘‘(8) 
FULL
RECOUPMENT
OF
FEDERAL 
SHARE.—The Secretary shall collect, for repayment 
of the Federal financial assistance provided in con-
nection with all acts of terrorism (or acts of war, in 
the case of workers’ compensation and group life in-
surance), terrorism loss risk-spreading premiums in 
an amount equal to the total amount paid by the 
Secretary in accordance with this section. 
‘‘(9) POLICY SURCHARGE FOR TERRORISM LOSS 
RISK-SPREADING PREMIUMS.— 
‘‘(A) 
POLICYHOLDER
PREMIUM.—Any 
amount established by the Secretary as a ter-
rorism loss risk-spreading premium shall— 
‘‘(i) be imposed as a policyholder pre-
mium surcharge on all covered lines of in-
surance policies in force after the date of 
such establishment; 
‘‘(ii) begin with such period of cov-
erage during the year as the Secretary de-
termines appropriate; and 
‘‘(iii) be based on a percentage of the 
premium amount charged for covered lines 
of insurance coverage under the policy. 
‘‘(B) COLLECTION.—The Secretary shall 
provide for insurers to collect terrorism loss
risk-spreading 
premiums 
and 
remit 
such 
amounts collected to the Secretary. 
‘‘(C) PERCENTAGE
LIMITATION.—A ter-
rorism loss risk-spreading premium may not ex-
ceed, on an annual basis, the amount equal to 
3 percent of the premium charged for covered 
lines of insurance coverage under the policy. 
‘‘(D) ADJUSTMENT
FOR
URBAN
AND 
SMALLER COMMERCIAL AND RURAL AREAS AND 
DIFFERENT LINES OF INSURANCE.— 
‘‘(i) ADJUSTMENTS.—In determining 
the method and manner of imposing ter-
rorism loss risk-spreading premiums, in-
cluding the amount of such premiums, the 
Secretary shall 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-
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. 
‘‘(ii) 
RECOUPMENT
OF
ADJUST-
MENTS.—Any recoupment amounts not 
collected by the Secretary because of ad-
justments under this subparagraph shall 
be recouped through additional terrorism 
loss risk-spreading premiums. 
‘‘(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, 
or to apply such provisions on a daily, monthly, 
or quarterly basis, as appropriate. 
‘‘(F) REPLENISHMENT OF TRIA CAPITAL 
RESERVE
FUNDS.—After any funds expended 
directly from the United States Treasury are 
fully repaid, the balance of the amounts col-
lected under this paragraph shall be used to 
fully replenish all insurer CRFs used by the 
Secretary in accordance with the provisions of 
paragraph (2)(C) that were not used by the in-
surer to satisfy its obligations in accordance 
with clauses (i) through (iv) of paragraph 
(2)(C). 
‘‘(f) CAPTIVE INSURERS AND OTHER SELF-INSUR-
ANCE ARRANGEMENTS.—The Secretary may, in consulta-
tion with the NAIC or the appropriate State regulatory 
authority, apply the provisions of this title, as appropriate, 
to other classes or types of captive insurers and other self- 
insurance arrangements by municipalities and other enti-
ties (such as workers’ compensation self-insurance pro-
grams and State workers’ compensation reinsurance 
pools), but only if such application is determined before 
the occurrence of an act of terrorism in which such an 
entity incurs an insured loss and all of the provisions of 
this title are applied comparably to such entities. 
‘‘(g) REINSURANCE TO COVER EXPOSURE.— 
‘‘(1) OBTAINING
COVERAGE.—This title may 
not be construed to limit or prevent insurers from 
obtaining 
reinsurance 
coverage 
for 
insurer 
deductibles or insured losses retained by insurers 
pursuant to this section, nor shall the obtaining of
such coverage affect the calculation of such 
deductibles or retentions. 
‘‘(2) LIMITATION ON FINANCIAL ASSISTANCE.— 
The amount of financial assistance provided pursu-
ant to this section, including amounts from a CRF 
used pursuant to subsection (e)(2)(C), shall not be 
reduced by reinsurance paid or payable to an insurer 
from other sources, except that recoveries from such 
other sources, taken together with financial assist-
ance for the Transition Period or a Program Year 
provided pursuant to this section, may not exceed 
the aggregate amount of the insurer’s insured losses 
for such period. If such recoveries and financial as-
sistance for the Transition Period or a Program 
Year exceed such aggregate amount of insured losses 
for that period and there is no agreement between 
the insurer and any reinsurer to the contrary, an 
amount in excess of such aggregate insured losses 
shall be returned to the Secretary. 
‘‘(h) PERSONAL LINES STUDY.— 
‘‘(1) IN GENERAL.—The Comptroller General of 
the United States, after consultation with the NAIC, 
representatives of the insurance industry, and other 
experts in the insurance field, including a cross-sec-
tion of insurers, independent insurance agents and
brokers, and policyholders, shall conduct a study 
concerning the exposure of personal lines (including 
homeowners insurance) to terrorism risk, the cov-
erage currently available, and potential policy re-
sponses. 
‘‘(2) REPORT.—Not later than September 1, 
2006, the Comptroller General shall submit a report 
to the Congress on the results of the study con-
ducted under subparagraph (1), together with spe-
cific policy recommendations. 
‘‘(i) STUDY OF RISKS STEMMING FROM NUCLEAR, 
BIOLOGICAL, CHEMICAL AND RADIOLOGICAL EVENTS.— 
‘‘(1) IN GENERAL.—The Comptroller General of 
the United States, after consultation with the NAIC, 
representatives of the insurance industry, including 
a cross-section of insurers, independent insurance 
agents and brokers, and policyholders, and other ex-
perts in the insurance field, shall conduct a study 
concerning the risk of potential terrorist acts stem-
ming from the use of nuclear, biological, chemical, 
and radiological weapons. 
‘‘(2) REPORT.—Not later than September 1, 
2006, the Comptroller General shall submit a report 
to the Congress on the results of the study con-
ducted under paragraph (1), together with specific 
policy recommendations. 
‘‘(j) STUDY OF NEED FOR FEDERAL NATURAL DIS-
ASTER CATASTROPHE PROGRAM.— 
‘‘(1) IN GENERAL.—The Comptroller General of 
the United States, after consultation with the NAIC, 
representatives of the insurance industry, including 
a cross-section of insurers, independent insurance 
agents and brokers, and policyholders, and other ex-
perts in the insurance field, shall conduct a study 
concerning the need for a Federal program that pro-
vides for a system of shared public and private com-
pensation for insured losses resulting from natural 
disaster. 
‘‘(2) REPORT.—Not later than September 1, 
2006, the Comptroller General shall submit a report 
to the Congress on the results of the study con-
ducted under paragraph (1), together with specific 
policy recommendations. 
‘‘SEC. 104. GENERAL AUTHORITY AND ADMINISTRATION OF 
CLAIMS. 
‘‘(a) GENERAL AUTHORITY.—The Secretary shall 
have the powers and authorities necessary to carry out the 
program, including authority—
‘‘(1) to investigate and audit all claims under 
the Program; and 
‘‘(2) to prescribe regulations and procedures to 
effectively administer and implement the Program, 
and to ensure that all insurers and self-insured enti-
ties that participate in the Program are treated com-
parably under the Program. 
‘‘(b) INTERIM RULES AND PROCEDURES.—The Sec-
retary may issue interim final rules or procedures speci-
fying the manner in which— 
‘‘(1) insurers may file and certify claims under 
the Program; 
‘‘(2) the Federal share of compensation for in-
sured losses will be paid under the Program, includ-
ing payments based on estimates of or actual in-
sured losses; 
‘‘(3) the Secretary may, at any time, seek re-
payment from or reimburse any insurer, based on 
estimates of insured losses under the Program, to ef-
fectuate the insured loss sharing provisions in sec-
tion 103; and 
‘‘(4) the Secretary will determine any final net-
ting of payments under the Program, including pay-
ments owed to the Federal Government from any in-
surer and any Federal share of compensation for in-
sured losses owed to any insurer, to effectuate the 
insured loss sharing provisions in section 103. 
‘‘(c) CONSULTATION.—The Secretary shall consult 
with the NAIC, as the Secretary determines appropriate, 
concerning the Program. 
‘‘(d) CONTRACTS
FOR SERVICES.—The Secretary 
may employ persons or contract for services as may be 
necessary to implement the Program. 
‘‘(e) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—The Secretary may assess 
a civil monetary penalty in an amount not exceeding 
the amount under paragraph (2) against any insurer 
that the Secretary determines, on the record after 
opportunity for a hearing—— 
‘‘(A) has failed to charge, collect, or remit 
terrorism loss risk-spreading premiums under 
section 103(e) in accordance with the require-
ments of, or regulations issued under, this title; 
‘‘(B) has intentionally provided to the Sec-
retary erroneous information regarding pre-
mium or loss amounts; 
‘‘(C) submits to the Secretary fraudulent 
claims under the Program for insured losses; 
‘‘(D) has failed to provide the disclosures 
required under subsection (f); or
‘‘(E) has otherwise failed to comply with 
the provisions of, or the regulations issued 
under, this title. 
‘‘(2) AMOUNT.—The amount under this para-
graph is the greater of $1,000,000 and, in the case 
of any failure to pay, charge, collect, or remit 
amounts in accordance with this title or the regula-
tions issued under this title, such amount in dispute. 
‘‘(3) RECOVERY OF AMOUNT IN DISPUTE.—A 
penalty under this subsection for any failure to pay, 
charge, collect, or remit amounts in accordance with 
this title or the regulations under this title shall be 
in addition to any such amounts recovered by the 
Secretary. 
‘‘(f) SUBMISSION OF PREMIUM INFORMATION.— 
‘‘(1) IN GENERAL.—The Secretary shall annu-
ally compile information on the terrorism risk insur-
ance premium rates of insurers for the preceding 
year. 
‘‘(2) ACCESS TO INFORMATION.—To the extent 
that such information is not otherwise available to 
the Secretary, the Secretary may require each in-
surer to submit to the NAIC terrorism risk insur-
ance premium rates, as necessary to carry out para-
graph (1), and the NAIC shall make such informa-
tion available to the Secretary. 
‘‘(3) AVAILABILITY
TO
CONGRESS.—The Sec-
retary shall make information compiled under this 
subsection available to the Congress, upon request. 
‘‘(g) FUNDING.— 
‘‘(1) FEDERAL PAYMENTS.—There are hereby 
appropriated, out of funds in the Treasury not oth-
erwise appropriated, such sums as may be necessary 
to pay the Federal share of compensation for in-
sured losses under the Program to the extent such 
Federal share exceeds funds collected by the Sec-
retary pursuant to section 103(e)(2). 
‘‘(2) ADMINISTRATIVE
EXPENSES.—There are 
hereby appropriated, out of funds in the Treasury 
not otherwise appropriated, such sums as may be 
necessary to pay reasonable costs of administering 
the Program. 
‘‘SEC. 105. ESTABLISHMENT OF COMMISSION ON TER-
RORISM RISK INSURANCE. 
‘‘(a) IN GENERAL.—There is hereby established the 
Commission on Terrorism Risk Insurance (in this section 
referred to as the ‘Commission’). 
‘‘(b) MEMBERSHIP.—
‘‘(1) The Commission shall consist of nine 
members, as follows: 
‘‘(A) The Secretary of the Treasury or his 
designee. 
‘‘(B) One State insurance commissioner 
designated by the members of the NAIC. 
‘‘(C) Seven members appointed by the 
President, who shall be— 
‘‘(i) a representative of group life in-
surers; 
‘‘(ii) a representative of property and 
casualty insurers with direct written pre-
mium of $1,000,000,000 or less; 
‘‘(iii) a representative of property and 
casualty insurers with direct written pre-
mium of more than $1,000,000,000; 
‘‘(iv) a representative of multiline in-
surers; 
‘‘(v) a representative of independent 
insurance agents; 
‘‘(vi) a representative of insurance 
brokers; and 
‘‘(vii) a policyholder representative. 
‘‘(2) SECRETARY.—The Program Director of 
the Terrorism Risk Insurance Act shall serve as Sec-
retary of the Commission. The Secretary of the 
Commission shall determine the manner in which 
the Commission shall operate, including funding and 
staffing. 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—The Commission shall iden-
tify and make recommendations regarding— 
‘‘(A) possible actions to encourage, facili-
tate, and sustain provision by the private insur-
ance industry in the United States of coverage 
for losses due to an act or acts of terrorism; 
‘‘(B) possible actions or mechanisms to 
sustain or supplement the ability of the insur-
ance industry in the United States to cover 
losses resulting from acts of terrorism in the 
event that— 
‘‘(i) such losses jeopardize the capital 
and surplus of the insurance industry in 
the United States as a whole; or 
‘‘(ii) other consequences from such 
acts occur, as determined by the Commis-
sion, that may significantly affect the abil-
ity of the insurance industry in the United 
States to independently cover such losses; 
and
‘‘(C) significantly reducing the expected 
Federal role over time in any continuing Fed-
eral terrorism risk insurance program. 
‘‘(2) EVALUATIONS.—In identifying and mak-
ing the recommendations required under paragraph 
(1), the Commission shall specifically evaluate the 
utility and viability of TRIA Capital Reserve Funds 
made available under section 103(e)(2), any risk 
sharing mechanism created or made available under 
section 103(e)(3), a Federally created or mandated 
reinsurance facility, empowering such a facility to 
issue pre-event financing bonds, post-event financing 
bonds, assessments, single or multiple pooling ar-
rangements, and other risk sharing arrangements to 
accomplish, in whole or in part, the specified objec-
tives, taking into consideration the studies and re-
ports to the Congress pursuant to subsections (h) 
and (i) of section 103. 
‘‘(3) REPORT.—Not later than December 31, 
2006, the Commission shall submit a report to Con-
gress evaluating and making recommendations re-
garding whether there is a need for a Federal ter-
rorism risk insurance program and, if so, shall make 
a specific, detailed recommendation for the replace-
ment of the Program, including specific, detailed
recommendations for the creation of a terrorism re-
insurance facility or facilities or single or multiple 
pooling arrangements, or both. 
‘‘(d) EFFECT
ON EXISTING PROGRAM.—For pur-
poses of section 108(a), the Secretary shall make a deter-
mination not later than January 31, 2007, of whether the 
Commission has satisfied its obligations under subsection 
(c)(3). 
‘‘SEC. 106. PRESERVATION PROVISIONS. 
‘‘(a) STATE LAW.—Nothing in this title shall affect 
the jurisdiction or regulatory authority of the insurance 
commissioner (or any agency or office performing like 
functions) of any State over any insurer or other person— 
‘‘(1) except as specifically provided in this title; 
and 
‘‘(2) except that— 
‘‘(A) the definition of the term ‘act of ter-
rorism’ in section 102 shall be the exclusive def-
inition of that term for purposes of compensa-
tion for insured losses under this title, and shall 
preempt any provision of State law that is in-
consistent with that definition, to the extent 
that such provision of law would otherwise 
apply to any type of insurance covered by this 
title; and
‘‘(B) during the period beginning on the 
date of enactment of this Act and for so long 
as the Program is in effect, as provided in sec-
tion 108, including authority in subsection 
108(b), books and records of any insurer that 
are relevant to the Program shall be provided, 
or caused to be provided, to the Secretary, upon 
request by the Secretary, notwithstanding any 
provision of the laws of any State prohibiting or 
limiting such access; and 
‘‘(3) except that with respect to coverage re-
quired to be made available under section 103(c)— 
‘‘(A) rates and forms filed with any State 
shall not be subject to prior approval or a wait-
ing period under any law of a State that would 
otherwise be applicable, except that where a 
State has prior approval authority, such author-
ity shall apply to allow subsequent review to in-
validate a rate as in adequate or unfairly dis-
criminatory, and, with respect to forms, such 
authority shall apply to allow subsequent review 
of such forms for compliance with the statutes 
and regulations of the State, except that such 
subsequent review must allow sub-limits for cov-
erage for acts of terrorism for property insur-
ance and casualty insurance and must be based 
on transparent standards; 
‘‘(B) no laws or regulations of a State with 
respect to rate and form approval or dis-
approval other than disclosure requirements re-
garding exempt commercial purchases and in-
formational filing requirements, shall apply to 
insurance offered by an insurer to an exempt 
commercial purchaser, so long as the insurer 
files and retains the exempt commercial pur-
chaser certification and any policies issued pur-
suant to such certification for at least three 
years and makes such certification and policies 
available to such State for review as required by 
the statutes and regulations of such State; 
‘‘(C) no laws or regulations of a State, 
other than the home State, shall apply to a 
multi-State commercial insurance policy relat-
ing to the policy form or the terms of the policy 
(including any requirement of the State relating 
to policy form filing, the coverages the policy 
must afford, the terms of such coverages, policy 
termination, policy cancellation, policy renewal, 
premium finance, premium payment, and policy
application), except laws and regulations relat-
ing to workers’ compensation coverage; 
‘‘(D) no laws or regulations of a State im-
posing a diligent search requirement for the 
placement of a surplus lines policy shall apply 
in connection with the purchase of such insur-
ance by an exempt commercial policyholder; and 
‘‘(E) no laws or regulations of a State, ex-
cept the home State, imposing a diligent search 
requirement for the placement of a surplus lines 
policy shall apply with respect to the placement 
of a multi-State surplus lines commercial insur-
ance policy, provided the contract of insurance 
insures risks in the home State. 
‘‘(b) STREAMLINED RATE
AND FORM FILING.— 
Within two years of the date of enactment of this Act, 
the Congress intends that all States, with respect to sub-
mission of a commercial property insurance policy or com-
mercial casualty insurance policy that includes coverage 
for acts of terrorism— 
‘‘(1) implement and fully utilize the System for 
Electronic Rate and Form Filing (in this section re-
ferred to as ‘SERFF’), developed by the NAIC, 
without deviation to provide a single point for elec-
tronic filing of property insurance and casualty in-
surance forms for review; 
‘‘(2) update SERFF to provide a single coordi-
nated checklist for inputting the required informa-
tion used by various States for filing reviews and 
designating to which States the information will be 
submitted; 
‘‘(3) allow the option of filing of self-certified 
commercial property insurance and commercial cas-
ualty insurance forms through a substantially na-
tionwide coordinated electronic filing system that— 
‘‘(A) includes a review checklist with uni-
form nomenclature clearly establishing what is 
required under the laws of such State for a 
compliant filing of such forms; 
‘‘(B) uses a single input system and trans-
mittal document that allows the filer to submit 
such form for review without required format 
deviations to any combination of the States par-
ticipating in the system; 
‘‘(C) does not require prior approval for 
such self-certified form filing; 
‘‘(D) keeps such filings confidential until 
they are implemented, deemed implemented, or 
disapproved; and
‘‘(E) only allows disapproval of such filings 
in writing based on specific standards that are 
published in statute, rule, or regulation. 
‘‘(c) STREAMLINED SURPLUS LINES PLACEMENT.— 
Within two years of the date of enactment of this Act, 
the Congress intends that all States streamline their sur-
plus lines diligent search rules with respect to the place-
ment of surplus lines policies in any covered line of insur-
ance that includes coverage for acts of terrorism by pro-
viding for— 
‘‘(1) automatic export for exempt commercial 
purchasers, under which a surplus lines broker seek-
ing to obtain, provide, or place insurance in a State 
for an insured that qualifies as an exempt commer-
cial purchaser may procure surplus lines insurance 
from or place surplus lines insurance with any non-
admitted insurer without making a diligent search to 
determine whether the full amount or type of insur-
ance sought by the exempt commercial purchaser 
can be obtained from admitted insurers in such 
State. 
‘‘(2) home State regulation of diligent search 
requirements, that provides that, except as provided 
in paragraph (1), only the home State may impose 
a diligent search requirement for the placement of a
multi-State surplus lines commercial insurance pol-
icy, provided the contract of insurance insures risks 
in the Home State. 
‘‘(d) EXISTING REINSURANCE AGREEMENTS.—Noth-
ing in this title shall be construed to alter, amend, or ex-
pand the terms of coverage under any reinsurance agree-
ment in effect on the date of enactment of this Act. The 
terms and conditions of such an agreement shall be deter-
mined by the language of that agreement.’’; and 
(2) in section 108— 
(A) by striking subsection (a) and insert-
ing the following new subsection: 
‘‘(a) TERMINATION OF PROGRAM.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Program shall terminate on December 
31, 2008. 
‘‘(2) FAILURE OF COMMISSION TO SUBMIT RE-
PORT.—If the Secretary determines pursuant to sec-
tion 105(d) that the Commission on Terrorism Risk 
Insurance established under section 105 has not sat-
isfied its obligations under section 105(c)(3), the 
Program shall terminate on December 31, 2007.’’; 
and 
(B) in subsection (c)(1), by striking ‘‘para-
graph (4), (5), (6), (7), or (8) of’’.
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply beginning on January 1, 2006. The 
provisions of the Terrorism Risk Insurance Act of 2002, 
as in effect on the day before the date of the enactment 
of this Act, shall apply through the end of December 31, 
2005. 
Æ