Terrorism Risk Insurance Extension Act of 2005

Bill: 109-s-467
Sponsor: Sen. Dodd, Christopher J. [D-CT]
Introduced: 2005-02-18 in the Senate
Policy area: Finance and Financial Sector
Subjects: Administrative procedure
Armed Forces and National Security
Biological warfare
Casualty insurance
Chemical warfare
Coinsurance
Commerce
Compensation (Law)
Congress
Congressional investigations
Congressional reporting requirements
Crime and Law Enforcement
Damages
Department of the Treasury
Disaster relief
Electronic data interchange
Emergency Management
Federal advisory bodies
Government Operations and Politics
Government paperwork
Insurance companies
Labor and Employment
Law
Legislation
Life insurance
Losses
Nuclear terrorism
Property insurance
Reinsurance
Risk
Science, Technology, Communications
Terrorism
Trusts and trustees
Workers' compensation

Summary:
action_date: 2005-02-18
text: 
Terrorism Risk Insurance Extension Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 (TRIA) to extend the terrorism risk insurance program from 2005 through 2007.
 
Defines &quot;Program Year 4&quot; as calendar 2006 and &quot;Program Year 5&quot; as calendar 2007.
 
Extends coverage for insured losses under a policy issued during Program Year 5 through December 31, 2008, at the latest.
 
Increases the insurance marketplace aggregate retention amount for Program Years 4 and 5.
 
Directs the Secretary to apply TRIA to providers of group life insurance.
 
Instructs the Presidential Working Group on Financial Markets to report to Congress its recommendations for legislation to address the long-term availability and affordability of insurance for terrorism risk.

action_date: 2005-11-16
text: 
Terrorism Risk Insurance Extension Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 to extend the terrorism risk insurance program from 2005 through 2007.
 
Raises the property and casualty insurance loss threshold that qualifies for certification by the Secretary of the Treasury as an act of terrorism with respect to Program Year 4 and Program Year 5.
 
Defines Program Year 5 as ending on December 31, 2007.
 
Excludes from covered lines of insurance: (1) commercial automobile insurance; (2) burglary and theft insurance; (3) surety insurance; (4) professional liability insurance; and (5) farm owners multiple peril insurance.
 
Prescribes formulae for insurer deductibles for Program Years 4 and 5.
 
Sets the federal share of insured loss compensation for Program Year 5 at 85% (Year 4 is currently 90%) of the amount of insured losses exceeding the applicable insurer deductible.
 
Specifies for Program Years 4 and 5 increasing maximum aggregate retention amounts in the formula for mandatory recoupment of the federal share of insured loss compensation paid.
 
States that procedures and requirements for advance approval of settlements established by the Secretary are applicable to any cause of action for damages in connection with a determination by the Secretary that an act of terrorism has occurred.
 
Directs the President's Working Group on Financial Markets to analyze and report to certain congressional committees on the long-term availability and affordability of insurance for terrorism risk, including: (1) group life coverage; and (2) coverage for chemical, nuclear, biological, and radiological events.

action_date: 2005-11-18
text: 
Terrorism Risk Insurance Extension Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 to extend the terrorism risk insurance program from 2005 through 2007.
 
Raises the property and casualty insurance loss threshold that qualifies for certification by the Secretary of the Treasury as an act of terrorism with respect to Program Year 4 and Program Year 5.
 
Defines Program Year 5 as ending on December 31, 2007.
 
Excludes from covered lines of insurance: (1) commercial automobile insurance; (2) burglary and theft insurance; (3) surety insurance; (4) professional liability insurance; and (5) farm owners multiple peril insurance.
 
Prescribes formulae for insurer deductibles for Program Years 4 and 5.
 
Sets the federal share of insured loss compensation for Program Year 5 at 85% (Year 4 is currently 90%) of the amount of insured losses exceeding the applicable insurer deductible.
 
Specifies for Program Years 4 and 5 increasing maximum aggregate retention amounts in the formula for mandatory recoupment of the federal share of insured loss compensation paid.
 
States that procedures and requirements for advance approval of settlements established by the Secretary are applicable to any cause of action for damages in connection with a determination by the Secretary that an act of terrorism has occurred.
 
Directs the President's Working Group on Financial Markets to analyze and report to certain congressional committees on the long-term availability and affordability of insurance for terrorism risk, including: (1) group life coverage; and (2) coverage for chemical, nuclear, biological, and radiological events.

action_date: 2005-12-07
text: 
Terrorism Risk Insurance Revision Act of 2005 - (Sec. 2) Revises the Terrorism Risk Insurance Act of 2002 to establish Program Year 4 beginning on January 1, 2006, and ending on December 31, 2006. Provides for Additional Program Years following Program Year 4 (thereby extending the Terrorism Risk Insurance Program).
 
Redefines &quot;act of terrorism&quot; to repeal the $5 million minimum for an act to be certified by the Secretary of the Treasury.
 
Redefines: (1) &quot;casualty insurance&quot;; and (2) &quot;exempt commercial purchaser.&quot;
 
Sets forth a statutory formula for insurer deductibles for Program Year 4 and additional Program Years. 
 
(Sec. 103) Revises mandatory availability guidelines to include NBCR terrorism (terrorism involving nuclear, biological, chemical, and/or radioactive reactions, releases, or contaminations, to the extent any insured losses are caused by any of them).
 
Instructs the Secretary to issue regulations that apply the provisions of TRIA title I to state workers' compensation reinsurance pools.
 
Revamps guidelines governing the federal share of compensation covering insured losses of an insurer. Establishes a Program trigger for such federal share.
 
Prescribes guidelines under which an insurer may establish a TRIA Capital Reserve Fund (CRF) in which it may hold funds in a fiduciary capacity on behalf of the Secretary.
 
Directs the Secretary to collect and use CRF funds offset the federal share of compensation.
 
States that TRIA title I does not prohibit insurers from developing risk-sharing mechanisms (including mutual reinsurance facilities and agreements) to voluntarily reinsure certain terrorism losses among themselves.
 
Requires the Secretary to appoint an Advisory Committee to encourage the creation and development of such mechanisms. 
 
Provides for full recoupment of federal financial assistance provided in connection with all acts of terrorism. 
 
Requires the Comptroller General to study and report to Congress on: (1) the exposure of personal lines (including homeowners insurance) to terrorism risk, the coverage currently available, and potential policy responses; (2) the extent to which risks associated with nuclear, biological, chemical, or radioactive events are measurable and insurable at the federal or private sector level, or both; and (3) the need for a federal program that provides for a system of shared public and private compensation for insured losses resulting from natural disaster.
 
Requires the latter study to analyze whether such program should incorporate tax-free capital reserves, voluntary mutual reinsurance pools, a distinction between sophisticated and non-sophisticated commercial purchasers for the purposes of exemption from regulation, or federal support for the purchase of reinsurance by state disaster insurance programs.
 
Establishes the Commission on Terrorism Risk Insurance (Commission) to identify and report to Congress on the following: (1) actions to encourage, facilitate, and sustain provision by the domestic private insurance industry of affordable coverage for losses due to acts of terrorism; (2) the utility and viability of TRIA Capital Reserve Funds; (3) any risk sharing mechanism created or made available under this Act; and (4) a federally created or mandated reinsurance facility (which shall issue pre-event and post-event financing bonds, assessments, single or multiple pooling arrangements, and other risk sharing arrangements). 
 
Directs the Commission to report to Congress on whether there is a need for a federal terrorism risk insurance program and, if so, to make a specific, detailed recommendation for the replacement of the Program, including specific, detailed recommendations for the creation of a terrorism reinsurance facility or facilities or single or multiple pooling arrangements, or both.
 
Sets limitations upon state regulatory authority in connection with mandatory availability of terrorism risk insurance.
 
Declares that Congress intends that all states will implement by December 31, 2007, the System for Electronic Rate and Form Filing and streamlined surplus lines diligent search policies.
 
Revises the termination date of the Program from December 31, 2007, to December 31, 2008, unless the Commission has not satisfied its obligations, in which case the termination date is December 31, 2007. 

action_date: 2005-12-16
text: 
Terrorism Risk Insurance Extension Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 to extend the terrorism risk insurance program from 2005 through 2007.
 

 
Defines Program Year 5 as ending on December 31, 2007.
 
Excludes from covered lines of insurance: (1) commercial automobile insurance; (2) burglary and theft insurance; (3) surety insurance; (4) professional liability insurance; and (5) farm owners multiple peril insurance.
 
Prescribes formulae for insurer deductibles for Program Years 4 and 5.
 
Sets the federal share of insured loss compensation for Program Year 5 at 85% (Year 4 is currently 90%) of the amount of insured losses exceeding the applicable insurer deductible.
 
Specifies for Program Years 4 and 5 increasing maximum aggregate retention amounts in the formula for mandatory recoupment of the federal share of insured loss compensation paid.
 
States that compensation for a certified act of terrorism occurring after March 31, 2006, shall be paid only if the aggregate industry insured losses exceed either: (1) $50 million occurring in Program Year 4; or (2) $100 million occurring in Program Year 5.
 
States that procedures and requirements for advance approval of settlements established by the Secretary are applicable to any cause of action for damages in connection with a determination by the Secretary that an act of terrorism has occurred.
 
Directs the President's Working Group on Financial Markets to analyze and report to certain congressional committees on the long-term availability and affordability of insurance for terrorism risk, including: (1) group life coverage; and (2) coverage for chemical, nuclear, biological, and radiological events.

action_date: 2005-12-22
text: 
(
This measure has not been amended since it was passed by the Senate with an amendment to the House passed version on December 16, 2005. The summary of that version is repeated here.)

 
Terrorism Risk Insurance Extension Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 to extend the terrorism risk insurance program from 2005 through 2007.
 
Defines Program Year 5 as ending on December 31, 2007.
 
Excludes from covered lines of insurance: (1) commercial automobile insurance; (2) burglary and theft insurance; (3) surety insurance; (4) professional liability insurance; and (5) farm owners multiple peril insurance.
 
Prescribes formulae for insurer deductibles for Program Years 4 and 5.
 
Sets the federal share of insured loss compensation for Program Year 5 at 85% (Year 4 is currently 90%) of the amount of insured losses exceeding the applicable insurer deductible.
 
Specifies for Program Years 4 and 5 increasing maximum aggregate retention amounts in the formula for mandatory recoupment of the federal share of insured loss compensation paid.
 
States that compensation for a certified act of terrorism occurring after March 31, 2006, shall be paid only if the aggregate industry insured losses exceed either: (1) $50 million occurring in Program Year 4; or (2) $100 million occurring in Program Year 5.
 
States that procedures and requirements for advance approval of settlements established by the Secretary are applicable to any cause of action for damages in connection with a determination by the Secretary that an act of terrorism has occurred.
 
Directs the President's Working Group on Financial Markets to analyze and report to certain congressional committees on the long-term availability and affordability of insurance for terrorism risk, including: (1) group life coverage; and (2) coverage for chemical, nuclear, biological, and radiological events.


Legislative actions:
action_date: 2005-12-22
text: Became Public Law No: 109-144.
action_date: 2005-12-22
text: Became Public Law No: 109-144.
action_date: 2005-12-22
text: Signed by President.
action_date: 2005-12-22
text: Signed by President.
action_date: 2005-12-19
text: Presented to President.
action_date: 2005-12-19
text: Presented to President.
action_date: 2005-12-17
text: Cleared for White House.
action_date: 2005-12-17
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2005-12-17
text: On motion that the House suspend the rules and agree to the Senate amendment to the House amendment Agreed to by voice vote. (text as House agreed to Senate amendment: CR H12136)
action_date: 2005-12-17
text: Resolving differences -- House actions: On motion that the House suspend the rules and agree to the Senate amendment to the House amendment Agreed to by voice vote.(text as House agreed to Senate amendment: CR H12136)
action_date: 2005-12-17
text: DEBATE - The House proceeded with forty minutes of debate on the motion to suspend the rules and agree to the Senate amendment to the House amendment to S. 467.
action_date: 2005-12-17
text: Mr. Oxley moved that the House suspend the rules and agree to the Senate amendment to the House amendment. (consideration: CR H12135-12141)
action_date: 2005-12-16
text: Message on Senate action sent to the House.
action_date: 2005-12-16
text: Senate concurred in House amendment with an amendment (SA 2689) Unanimous Consent. (consideration: CR S13931-13934; text as Senate agreed to House amendment with amendment: CR S13933)
action_date: 2005-12-16
text: Resolving differences -- Senate actions: Senate concurred in House amendment with an amendment (SA 2689) Unanimous Consent.(consideration: CR S13931-13934; text as Senate agreed to House amendment with amendment: CR S13933)
action_date: 2005-12-12
text: Message on House action received in Senate and at desk: House amendment to Senate bill.
action_date: 2005-12-07
text: The Speaker appointed a conferee for consideration of the Senate bill and the House amendment, and modifications committed to conference: Sessions.
action_date: 2005-12-07
text: The Speaker appointed conferees - from the Committee on the Judiciary for consideration of secs. 2 and 6 of the Senate bill and modifications committed to conference: Sensenbrenner, Goodlatte, and Conyers.
action_date: 2005-12-07
text: The Speaker appointed conferees Provided that Mr. Israel is appointed in lieu of Mr. Capuano for consideration of secs. 4, 5, and 7 of the Senate bill, and secs. 103 and 105 of the House amendment, and modifications committed to conference.
action_date: 2005-12-07
text: The Speaker appointed conferees - from the Committee on Financial Services for consideration of the Senate bill and the House amendment, and modifications committed to conference: Oxley, Baker, Pryce (OH), Kelly, Kanjorski, Capuano, and Crowley.
action_date: 2005-12-07
text: On motion that the House insist upon its amendment, and request a conference Agreed to without objection.
action_date: 2005-12-07
text: Mr. Oxley moved that the House insist upon its amendment, and request a conference.
action_date: 2005-12-07
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2005-12-07
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 371 - 49 (Roll no. 612). (text: CR H11130-11135)
action_date: 2005-12-07
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 371 - 49 (Roll no. 612).(text: CR H11130-11135)
action_date: 2005-12-07
text: Considered as unfinished business. (consideration: CR H11147)
action_date: 2005-12-07
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2005-12-07
text: DEBATE - The House proceeded with forty minutes of debate on S. 467.
action_date: 2005-12-07
text: Considered under suspension of the rules. (consideration: CR H11130-11141)
action_date: 2005-12-07
text: Mr. Oxley moved to suspend the rules and pass the bill, as amended.
action_date: 2005-11-18
text: Held at the desk.
action_date: 2005-11-18
text: Message on Senate action sent to the House.
action_date: 2005-11-18
text: Received in the House.
action_date: 2005-11-18
text: Passed Senate with an amendment by Unanimous Consent.
action_date: 2005-11-18
text: Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
action_date: 2005-11-18
text: Measure laid before Senate by unanimous consent. (consideration: CR 11/17/2005 S13277-13282; text of measure as reported in Senate: CR 11/17/2005 S13277-13278)
action_date: 2005-11-16
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 287.
action_date: 2005-11-16
text: Committee on Banking, Housing, and Urban Affairs. Reported by Senator Shelby with an amendment in the nature of a substitute. Without written report.
action_date: 2005-11-16
text: Committee on Banking, Housing, and Urban Affairs. Reported by Senator Shelby with an amendment in the nature of a substitute. Without written report.
action_date: 2005-11-16
text: Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
action_date: 2005-07-29
text: Sponsor introductory remarks on measure. (CR S9424)
action_date: 2005-02-18
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S1723-1724)
action_date: 2005-02-18
text: Introduced in Senate

Enacted as: number: 109-144