Terrorism Risk Insurance Program Reauthorization Act of 2007

Bill: 110-s-2285
Sponsor: Sen. Dodd, Christopher J. [D-CT]
Introduced: 2007-11-01 in the Senate
Policy area: Finance and Financial Sector
Subjects: Administrative procedure
Armed Forces and National Security
Biological warfare
Casualty insurance
Chemical warfare
Commerce
Compensation (Law)
Congress
Congressional investigations
Congressional reporting requirements
Crime and Law Enforcement
Department of the Treasury
Government Operations and Politics
Insurance companies
Insurance premiums
Law
Losses
Nuclear terrorism
Property insurance
Reinsurance
Terrorism

Summary:
action_date: 2007-11-01
text: 
Terrorism Risk Insurance Program Reauthorization Act of 2007 - Amends the Terrorism Risk Insurance Act to: (1) redefine an act of terrorism; (2) extend the Terrorism Risk Insurance Program through calendar 2014; (3) modify an insurer's annual liability cap; (4) direct the Secretary of the Treasury to notify Congress within 15 days on whether estimated aggregate insured losses following an act of terrorism will exceed $100 billion; (5) require insurers to disclose to policyholders the $100 billion cap on liability; and (6) direct the Comptroller General to study and report to specified congressional committees on the availability and affordability of insurance coverage for nuclear, biological, chemical, and radiological terrorist events.

action_date: 2007-11-01
text: 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Terrorism Risk Insurance Program Reauthorization Act of 2007 - (Sec. 2) Amends the Terrorism Risk Insurance Act to revise the definition of an act of terrorism for terrorism risk insurance purposes to eliminate the requirement that the individual or individuals committing a terrorist act be acting on behalf of any foreign person or foreign interest.

Extends the Terrorism Risk Insurance Program through calendar 2014.

(Sec. 4) States that no insurer may be required to make payment for insured losses in excess of its statutory deductible, combined with its statutory share of insured losses.

Requires the Secretary of the Treasury to: (1) notify Congress within 15 days of an act of terrorism on whether the Secretary estimates that aggregate insured losses will exceed $100 billion; (2) promulgate final regulations for determining the pro rata share of insured losses which exceed $100 billion; and (3) report to Congress on the process used to determine the allocation of pro rata payments when insured losses exceed $100 billion.

Requires insurers to disclose to policyholders the $100 billion cap on liability.

(Sec. 5) Directs the Comptroller General to study and report to certain congressional committees regarding: (1) the availability and affordability of insurance coverage for losses caused by terrorist attacks involving nuclear, biological, chemical, or radiological materials; (2) the outlook for such coverage in the future; (3) the capacity of private insurers and state workers compensation funds to manage risk associated with such events; and (4) whether there are specific markets in the United States with unique capacity constraints on the amount of terrorism risk insurance available.


Legislative actions:
action_date: 2007-11-01
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 461.
action_date: 2007-11-01
text: Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Dodd. With written report No. 110-215.
action_date: 2007-11-01
text: Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Dodd. With written report No. 110-215.
action_date: 2007-11-01
text: Introduced in Senate