Terrorism Risk Insurance Extension Act of 2005
PL 109-144 (S.467), enacted 12/22/2005

119 STAT. 2660
PUBLIC LAW 109–144—DEC. 22, 2005
Public Law 109–144
109th Congress
An Act
To extend the applicability of the Terrorism Risk Insurance Act of 2002.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Terrorism Risk Insurance Exten-
sion Act of 2005’’.
SEC. 2. EXTENSION OF TERRORISM RISK INSURANCE PROGRAM.
(a) PROGRAM EXTENSION.—Section 108(a) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2336) is
amended by striking ‘‘2005’’ and inserting ‘‘2007’’.
(b) MANDATORY AVAILABILITY.—Section 103(c) of the Terrorism
Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2327)
is amended—
(1) by striking paragraph (2);
(2) by striking ‘‘AVAILABILITY.—’’ and all that follows
through ‘‘each entity’’ and inserting ‘‘AVAILABILITY.—During
each Program Year, each entity’’; and
(3) by redesignating subparagraphs (A) and (B) as para-
graphs (1) and (2), respectively, and moving the margins 2
ems to the left.
SEC. 3. AMENDMENTS TO DEFINED TERMS.
(a) PROGRAM YEARS.—Section 102(11) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326) is
amended by adding at the end the following:
‘‘(E) PROGRAM
YEAR
4.—The term ‘Program Year 4’
means the period beginning on January 1, 2006 and ending
on December 31, 2006.
‘‘(F) PROGRAM
YEAR
5.—The term ‘Program Year 5’
means the period beginning on January 1, 2007 and ending
on December 31, 2007.’’.
(b) EXCLUSIONS FROM COVERED LINES.—
(1) IN GENERAL.—Section 102(12)(B) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326)
is amended—
(A) in clause (vi), by striking ‘‘or’’ at the end;
(B) in clause (vii), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(viii) commercial automobile insurance;
‘‘(ix) burglary and theft insurance;
‘‘(x) surety insurance;
15 USC 6701
note.
Terrorism Risk
Insurance
Extension Act of
2005.
Dec. 22, 2005
[S. 467]
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119 STAT. 2661
PUBLIC LAW 109–144—DEC. 22, 2005
‘‘(xi) professional liability insurance; or
‘‘(xii) farm owners multiple peril insurance.’’.
(2) CONFORMING AMENDMENT.—Section 102(12)(A) of the
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note;
116 Stat. 2326) is amended by striking ‘‘surety insurance’’
and inserting ‘‘directors and officers liability insurance’’.
(c) INSURER DEDUCTIBLES.—Section 102(7) of the Terrorism
Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2325)
is amended—
(1) in subparagraph (D), by striking ‘‘and’’ at the end;
(2) by redesignating subparagraph (E) as subparagraph
(G);
(3) by inserting after subparagraph (D), the following:
‘‘(E) for Program Year 4, the value of an insurer’s
direct earned premiums over the calendar year immediately
preceding Program Year 4, multiplied by 17.5 percent;
‘‘(F) for Program Year 5, the value of an insurer’s
direct earned premiums over the calendar year immediately
preceding Program Year 5, multiplied by 20 percent; and’’;
and
(4) in subparagraph (G), as so redesignated, by striking
‘‘through (D)’’ and all that follows through ‘‘Year 3’’ and
inserting the following: ‘‘through (F), for the Transition Period
or any Program Year’’.
SEC. 4. INSURED LOSS SHARED COMPENSATION.
Section 103(e) of the Terrorism Risk Insurance Act of 2002
(15 U.S.C. 6701 note; 116 Stat. 2328) is amended—
(1) in paragraph (1)—
(A) by inserting ‘‘through Program Year 4’’ before ‘‘shall
be equal’’; and
(B) by inserting ‘‘, and during Program Year 5 shall
be equal to 85 percent,’’ after ‘‘90 percent’’; and
(2) in each of paragraphs (2) and (3), by striking ‘‘Program
Year 2 or Program Year 3’’ each place that term appears
and inserting ‘‘any of Program Years 2 through 5’’.
SEC. 5. AGGREGATE RETENTION AMOUNTS AND RECOUPMENT OF FED-
ERAL SHARE.
(a) AGGREGATE RETENTION AMOUNTS.—Section 103(e)(6) of the
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116
Stat. 2329) is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at the end;
(2) in subparagraph (C), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(D) for Program Year 4, the lesser of—
‘‘(i) $25,000,000,000; and
‘‘(ii) the aggregate amount, for all insurers, of
insured losses during such Program Year; and
‘‘(E) for Program Year 5, the lesser of—
‘‘(i) $27,500,000,000; and
‘‘(ii) the aggregate amount, for all insurers, of
insured losses during such Program Year.’’.
(b) RECOUPMENT OF FEDERAL SHARE.—Section 103(e)(7) of the
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116
Stat. 2329) is amended—
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119 STAT. 2662
PUBLIC LAW 109–144—DEC. 22, 2005
(1) in subparagraph (A), by striking ‘‘, (B), and (C)’’ and
inserting ‘‘through (E)’’; and
(2) in each of subparagraphs (B) and (C), by striking
‘‘subparagraph (A), (B), or (C)’’ each place that term appears
and inserting ‘‘any of subparagraphs (A) through (E)’’.
SEC. 6. PROGRAM TRIGGER.
Section 103(e)(1) of the Terrorism Risk Insurance Act of 2002
(15 U.S.C. note, 116 Stat. 2328) is amended—
(1) by redesignating subparagraph (B) as subparagraph
(C); and
(2) by inserting after subparagraph (A) the following:
‘‘(B) PROGRAM TRIGGER.—In the case of a certified act
of terrorism occurring after March 31, 2006, no compensa-
tion shall be paid by the Secretary under subsection (a),
unless the aggregate industry insured losses resulting from
such certified act of terrorism exceed—
‘‘(i) $50,000,000, with respect to such insured losses
occurring in Program Year 4; or
‘‘(ii) $100,000,000, with respect to such insured
losses occurring in Program Year 5.’’.
SEC. 7. LITIGATION MANAGEMENT.
Section 107(a) of the Terrorism Risk Insurance Act of 2002
(15 U.S.C. 6701 note; 116 Stat. 2335) is amended by adding at
the end the following:
‘‘(6) AUTHORITY
OF
THE
SECRETARY.—Procedures and
requirements established by the Secretary under section 50.82
of part 50 of title 31 of the Code of Federal Regulations (as
in effect on the date of issuance of that section in final form)
shall apply to any cause of action described in paragraph (1)
of this subsection.’’.
SEC. 8. ANALYSIS AND REPORT ON TERRORISM RISK COVERAGE
CONDITIONS AND SOLUTIONS.
Section 108 of the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note; 116 Stat. 2336) is amended by adding at the
end the following:
‘‘(e) ANALYSIS OF MARKET CONDITIONS FOR TERRORISM RISK
INSURANCE.—
‘‘(1) IN
GENERAL.—The President’s Working Group on
Financial Markets, in consultation with the National Associa-
tion of Insurance Commissioners, representatives of the insur-
ance industry, representatives of the securities industry, and
representatives of policy holders, shall perform an analysis
regarding the long-term availability and affordability of insur-
ance for terrorism risk, including—
‘‘(A) group life coverage; and
‘‘(B) coverage for chemical, nuclear, biological, and
radiological events.
‘‘(2) REPORT.—Not later than September 30, 2006, the
President’s Working Group on Financial Markets shall submit
a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
Applicability.
Effective date.
15 USC 6701
note.
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119 STAT. 2663
PUBLIC LAW 109–144—DEC. 22, 2005
LEGISLATIVE HISTORY—S. 467 (H.R. 4314):
HOUSE REPORTS: No. 109–327 accompanying H.R. 4314 (Comm. on Financial
Services).
CONGRESSIONAL RECORD, Vol. 151 (2005):
Nov. 17, considered and passed Senate.
Dec. 7, considered and passed House, amended.
Dec. 16, Senate concurred in House amendment with an amendment.
Dec. 17, House concurred in Senate amendment.
of the House of Representatives on its findings pursuant to
the analysis conducted under subsection (a).’’.
Approved December 22, 2005.
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