or to apply such provisions on a daily, monthly, 
or quarterly basis, as appropriate.’’. 
(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. 10. RISK-SHARING MECHANISMS. 
(a) IN GENERAL.—Section 103(e) (15 U.S.C. 6701 
note) is amended by adding at the end the following new 
paragraph: 
‘‘(9) RISK-SHARING MECHANISMS.— 
‘‘(A) 
FINDING; 
RULE
OF
CONSTRUC-
TION.—The Congress finds that it is desirable 
to encourage the growth of nongovernmental, 
private market reinsurance capacity for protec-
tion against losses arising from acts of ter-
rorism. Therefore, nothing in this title shall 
prohibit insurers from developing risk-sharing 
mechanisms (including mutual reinsurance fa-
cilities and agreements, use of the capital mar-
kets, and insurance-linked securities) to volun-
tarily reinsure terrorism losses between and 
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among themselves that are not subject to reim-
bursement under this section. 
‘‘(B) ESTABLISHMENT OF ADVISORY COM-
MITTEE.—The Secretary shall appoint an Advi-
sory Committee to— 
‘‘(I) encourage the creation and devel-
opment of such risk-sharing mechanisms; 
‘‘(ii) assist the Secretary and be avail-
able to administer such risk-sharing mech-
anisms; 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, reinsurers, or capital market partici-
pants that are participating or that desire to 
participate in such mechanisms, and who are 
representative of the affected sectors of the in-
surance industry, including commercial property 
insurance, commercial casualty insurance, rein-
surance, and alternative risk transfer indus-
tries.’’. 
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(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, 2015, and Program Years 
thereafter. 
SEC. 11. 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 Program Year 
beginning on January 1, 2016, and in each Program 
Year thereafter, the Secretary shall require insurers 
participating in the Program to submit to the Sec-
retary such information regarding insurance cov-
erage for terrorism losses of such insurers as the 
Secretary considers appropriate to analyze the effec-
tiveness of the Program, which shall include infor-
mation regarding— 
‘‘(A) lines of insurance with exposure to 
such losses; 
‘‘(B) premiums earned on such coverage; 
‘‘(C) geographical location of exposures; 
‘‘(D) pricing of such coverage; 
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‘‘(E) the take-up rate for such coverage; 
‘‘(F) the amount of private reinsurance for 
acts of terrorism purchased; and 
‘‘(G) such other matters as the Secretary 
considers appropriate. 
‘‘(2) REPORTS.—Not later than 6 months after 
the termination of the Program Year beginning on 
January 1, 2016, and not later than 6 months after 
the termination of each Program Year thereafter, 
the Secretary shall submit a report to the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate that includes— 
‘‘(A) an analysis of the overall effectiveness 
of the Program; 
‘‘(B) an evaluation of any changes or 
trends in the data collected under paragraph 
(1); 
‘‘(C) an evaluation of whether any aspects 
of the Program have the effect of discouraging 
or impeding insurers from providing commercial 
property casualty insurance coverage or cov-
erage for acts of terrorism; 
‘‘(D) an evaluation of the impact of the 
Program on workers’ compensation insurers; 
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‘‘(E) an evaluation of the impact on avail-
ability and affordability of terrorism insurance 
coverage and fiscal protection of the taxpayers 
of separate Federal treatment under the Pro-
gram for nuclear, biological, chemical, and radi-
ological terrorism; and 
‘‘(F) in the case of the data reported in 
paragraph (1)(B), an updated estimate of the 
total amount earned since the commencement 
of Program Year 1. 
‘‘(3) PROTECTION
OF
DATA.—To the extent 
possible, the Secretary shall contract with an insur-
ance statistical aggregator to collect the information 
described in paragraph (1), which shall keep any 
nonpublic information confidential and provide it to 
the Secretary in an aggregate form or in such other 
form or manner that does not permit identification 
of the insurer submitting such information. 
‘‘(4) ADVANCE
COORDINATION.—Before col-
lecting any data or information under paragraph (1) 
from an insurer, or affiliate of an insurer, the Sec-
retary shall coordinate with the appropriate State in-
surance regulatory authorities or their representa-
tives and any relevant government agency or publicly 
available sources to determine if the information to 
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be collected is available from, and may be obtained 
in a timely manner by, individually or collectively, 
such entities. If the Secretary determines that such 
data or information is available, and may be ob-
tained in a timely matter, from such entities, the 
Secretary shall obtain the data or information from 
such entities. If the Secretary determines that such 
data or information is not so available, the Secretary 
may collect such data or information from an in-
surer and affiliates. 
‘‘(5) CONFIDENTIALITY.— 
‘‘(A) RETENTION
OF
PRIVILEGE.—The 
submission of any non-publicly available data 
and information to the Secretary and the shar-
ing of any non-publicly available data with or 
by the Secretary among other Federal agencies, 
the State insurance regulatory authorities and 
their collective agents, or any other entities 
under this subsection shall not constitute a 
waiver of, or otherwise affect, any privilege aris-
ing under Federal or State law (including the 
rules of any Federal or State court) to which 
the data or information is otherwise subject. 
‘‘(B) CONTINUED APPLICATION OF PRIOR 
CONFIDENTIALITY AGREEMENTS.—Any require-
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which the data or information is otherwise 
subject. 
‘‘(D) 
AGENCY
DISCLOSURE
REQUIRE-
MENTS.—Section 552 of title 5, United States 
Code, including any exceptions thereunder, shall 
apply to any data or information submitted 
under this subsection to the Secretary by an in-
surer or affiliate of an insurer.’’. 
SEC. 12. DELIVERY OF NOTICES TO POLICYHOLDERS. 
Section 103(b)(2) (15 U.S.C. 6701 note) is amend-
ed— 
(1) in subparagraph (B), by striking ‘‘, pur-
chase,’’; and 
(2) in subparagraph (C), by striking ‘‘, pur-
chase,’’. 
SEC. 13. DEFINITION OF CONTROL. 
Paragraph (3) of section 102 (15 U.S.C. 6701 note) 
is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as clauses (I), (ii), and (iii), respectively and 
realigning such clauses, as so redesignated, so as to 
be indented six ems from the left margin; 
(2) in the matter preceding clause (I) (as so re-
designated), by striking ‘‘An entity has’’ and insert-
ing the following: 
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‘‘(A) IN GENERAL.—An entity has’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) RULE OF CONSTRUCTION.—An enti-
ty, including any affiliate thereof, does not have 
control over another entity if, as of the date of 
the enactment of the TRIA Reform Act of 
2014, the entity 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, de-
fined as having control under subparagraph 
(A).’’. 
SEC. 14. ANNUAL STUDY OF SMALL INSURER MARKET COM-
PETITIVENESS. 
Section 108 (15 U.S.C. 6701 note) is amended by 
adding at the end the following new subsection: 
‘‘(h) STUDY OF SMALL INSURER MARKET COMPETI-
TIVENESS.— 
‘‘(1) IN GENERAL.—The Secretary shall con-
duct an annual study of small insurers participating 
in the Program, and identify any competitive chal-
lenges small insurers face in the terrorism risk in-
surance marketplace, including— 
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‘‘(A) changes to the market share, pre-
mium volume, and policyholder surplus of small 
insurers relative to large insurers; 
‘‘(B) how the property and casualty insur-
ance market for terrorism risk differs between 
small and large insurers, and whether such a 
difference exists within other perils; 
‘‘(C) the impact of the Program’s manda-
tory availability requirement under section 
103(c) and the voluntary opt-out for small in-
surers; 
‘‘(D) the effect of increasing the trigger 
amount 
for 
the 
Program 
under 
section 
103(e)(1)(B)(iii)(I) on small insurers; 
‘‘(E) the availability and cost of private re-
insurance for small insurers; and 
‘‘(F) the impact that State workers com-
pensation laws have on small insurers, particu-
larly the impact of mandatory, non-excludable 
participation and unlimited financial liability. 
‘‘(2) TIMING
AND
REPORT.—The Secretary 
shall complete the first study under paragraph (1) 
and submit a report to the Congress setting forth 
the findings and conclusions of the study not later 
than June 30, 2016, and shall complete an annual 
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study under paragraph (1) and submit a report re-
garding such study to the Congress by June 1 annu-
ally thereafter.’’. 
SEC. 15. CBO AND OMB STUDIES REGARDING BUDGETING 
FOR COSTS OF FEDERAL INSURANCE PRO-
GRAMS. 
Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the 
Director of the Congressional Budget Office and the Di-
rector of the Office of Management and Budget shall 
each— 
(1) conduct a study to determine the feasibility 
of applying accrual accounting concepts to budgeting 
for the costs of the Terrorism Risk Insurance Pro-
gram and for the costs of the other Federal insur-
ance programs; and 
(2) submit a report regarding such study to the 
Committees on the Budget of the House of Rep-
resentatives and the Senate, which shall include a 
recommendation specifically addressing the feasi-
bility of applying fair value concepts to budgeting 
for the costs of Federal insurance programs, includ-
ing the Terrorism Risk Insurance Program. 
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SEC. 16. GAO STUDY ON UPFRONT PREMIUMS AND CAPITAL 
RESERVE FUND. 
(a) STUDY.—Not later than 2 years after the date 
of the enactment of this Act, the Comptroller General of 
the United States shall complete a study on the viability 
of the Federal Government— 
(1) assessing and collecting upfront premiums 
on insurers that participate in the Terrorism Risk 
Insurance Program established under the Terrorism 
Risk Insurance Act of 2002 (15 U.S.C. 6701 note) 
(in this section referred to as the ‘‘Program’’), which 
shall include a comparison of practices in inter-
national markets to assess and collect premiums ei-
ther before or after terrorism losses are incurred; 
and 
(2) creating a capital reserve fund under the 
Program and requiring insurers participating in the 
Program to dedicate capital specifically for terrorism 
losses before such losses are incurred, which shall in-
clude a comparison of practices in international mar-
kets to establish reserve funds. 
(b) REQUIRED CONTENT.—The study required under 
subsection (a) shall examine, but shall not be limited to, 
the following issues: 
(1) UPFRONT PREMIUMS.—With respect to up-
front premiums described in subsection (a)(1)— 
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(A) how the Federal Government could de-
termine the price of such upfront premiums on 
insurers that participate in the Program; 
(B) how the Federal Government could col-
lect such upfront premiums; 
(C) how the Federal Government could en-
sure that such upfront premiums are not spent 
for purposes other than satisfying claims 
through the Program; 
(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; 
(E) the effect of collecting such upfront 
premiums on the private market for terrorism 
risk reinsurance; and 
(F) the size of the Federal Government 
subsidy insurers currently receive through their 
participation in the Program. 
(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. 
(4) DURATION.—With respect to the capital re-
serve fund described in subsection (a)(2), how the 
duration of the Program would affect the viability of 
such capital reserve fund. 
(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. 
Æ 
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