[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2761 Enrolled Bill (ENR)]
H.R.2761
One Hundred Tenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Thursday,
the fourth day of January, two thousand and seven
An Act
To extend the Terrorism Insurance Program of the Department of the
Treasury, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Terrorism Risk
Insurance Program Reauthorization Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of act of terrorism.
Sec. 3. Reauthorization of the Program.
Sec. 4. Annual liability cap.
Sec. 5. Enhanced reports to Congress.
SEC. 2. DEFINITION OF ACT OF TERRORISM.
Section 102(1)(A)(iv) of the Terrorism Risk Insurance Act of 2002
(15 U.S.C. 6701 note) is amended by striking ``acting on behalf of any
foreign person or foreign interest''.
SEC. 3. REAUTHORIZATION OF THE PROGRAM.
(a) Termination Date.--Section 108(a) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking
``2007'' and inserting ``2014''.
(b) Additional Program Years.--Section 102(11) of the Terrorism
Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding
at the end the following:
``(G) Additional program years.--Except when used as
provided in subparagraphs (B) through (F), the term `Program
Year' means, as the context requires, any of Program Year 1,
Program Year 2, Program Year 3, Program Year 4, Program Year 5,
or any of calendar years 2008 through 2014.''.
(c) Conforming Amendments.--The Terrorism Risk Insurance Act of
2002 (15 U.S.C. 6701 note) is amended--
(1) in section 102(7)(F)--
(A) by inserting ``and each Program Year thereafter''
before ``, the value''; and
(B) by striking ``preceding Program Year 5'' and inserting
``preceding that Program Year'';
(2) in section 103(e)(1)(A), by inserting ``and each Program
Year thereafter'' after ``Year 5'';
(3) in section 103(e)(1)(B)(ii), by inserting before the period
at the end ``and any Program Year thereafter'';
(4) in section 103(e)(2)(A), by striking ``of Program Years 2
through 5'' and inserting ``Program Year thereafter'';
(5) in section 103(e)(3), by striking ``of Program Years 2
through 5,'' and inserting ``other Program Year''; and
(6) in section 103(e)(6)(E), by inserting ``and any Program
Year thereafter'' after ``Year 5''.
SEC. 4. ANNUAL LIABILITY CAP.
(a) In General.--Section 103(e)(2) of the Terrorism Risk Insurance
Act of 2002 (15 U.S.C. 6701 note) is amended--
(1) in subparagraph (A)--
(A) by striking ``(until such time as the Congress may act
otherwise with respect to such losses)''; and
(B) in clause (ii), by striking ``that amount'' and
inserting ``the amount of such losses''; and
(2) in subparagraph (B), by inserting before the period at the
end ``, except that, notwithstanding paragraph (1) or any other
provision of Federal or State law, no insurer may be required to
make any payment for insured losses in excess of its deductible
under section 102(7) combined with its share of insured losses
under paragraph (1)(A) of this subsection''.
(b) Notice to Congress.--Section 103(e)(3) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
(1) by adding at the end the following: ``The Secretary shall
provide an initial notice to Congress not later than 15 days after
the date of an act of terrorism, stating whether the Secretary
estimates that aggregate insured losses will exceed
$100,000,000,000.''; and
(2) by striking ``and the Congress shall'' and all that follows
through the end of the paragraph and inserting a period.
(c) Regulations for Pro Rata Payments; Report to Congress.--Section
103(e)(2)(B) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C.
6701 note) is amended--
(1) by striking ``For purposes'' and inserting the following:
``(i) In general.--For purposes''; and
(2) by adding at the end the following:
``(ii) Regulations.--Not later than 240 days after the
date of enactment of the Terrorism Risk Insurance Program
Reauthorization Act of 2007, the Secretary shall issue
final regulations for determining the pro rata share of
insured losses under the Program when insured losses exceed
$100,000,000,000, in accordance with clause (i).
``(iii) Report to congress.--Not later than 120 days
after the date of enactment of the Terrorism Risk Insurance
Program Reauthorization Act of 2007, the Secretary shall
provide a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives describing the
process to be used by the Secretary for determining the
allocation of pro rata payments for insured losses under
the Program when such losses exceed $100,000,000,000.''.
(d) Disclosure.--Section 103(b) of the Terrorism Risk Insurance Act
of 2002 (15 U.S.C. 6701 note) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs (4)
and (5), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) in the case of any policy that is issued after the date
of enactment of the Terrorism Risk Insurance Program
Reauthorization Act of 2007, the insurer provides clear and
conspicuous disclosure to the policyholder of the existence of the
$100,000,000,000 cap under subsection (e)(2), at the time of offer,
purchase, and renewal of the policy;''.
(e) Surcharges.--Section 103(e) of the Terrorism Risk Insurance Act
of 2002 (15 U.S.C. 6701 note) is amended--
(1) in paragraph (7)--
(A) in subparagraph (C), by inserting ``133 percent of''
before ``any mandatory recoupment''; and
(B) by adding at the end the following:
``(E) Timing of mandatory recoupment.--
``(i) In general.--If the Secretary is required to
collect terrorism loss risk-spreading premiums under
subparagraph (C)--
``(I) for any act of terrorism that occurs on or
before December 31, 2010, the Secretary shall collect
all required premiums by September 30, 2012;
``(II) for any act of terrorism that occurs between
January 1 and December 31, 2011, the Secretary shall
collect 35 percent of any required premiums by
September 30, 2012, and the remainder by September 30,
2017; and
``(III) for any act of terrorism that occurs on or
after January 1, 2012, the Secretary shall collect all
required premiums by September 30, 2017.
``(ii) Regulations required.--Not later than 180 days
after the date of enactment of this subparagraph, the
Secretary shall issue regulations describing the procedures
to be used for collecting the required premiums in the time
periods referred to in clause (i).
``(F) Notice of estimated losses.--Not later than 90 days
after the date of an act of terrorism, the Secretary shall
publish an estimate of aggregate insured losses, which shall be
used as the basis for determining whether mandatory recoupment
will be required under this paragraph. Such estimate shall be
updated as appropriate, and at least annually.''; and
(2) in paragraph (8)--
(A) in subparagraph (C)--
(i) by striking ``(including any additional amount
included in such premium'' and inserting ``collected''; and
(ii) by striking ``(D))'' and inserting ``(D)''; and
(B) in subparagraph (D)(ii), by inserting before the period
at the end ``, in accordance with the timing requirements of
paragraph (7)(E)''.
SEC. 5. ENHANCED REPORTS TO CONGRESS.
(a) Study and Report on Insurance for Nuclear, Biological,
Chemical, and Radiological Terrorist Events.--Section 108 of the
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended
by adding at the end the following:
``(f) Insurance for Nuclear, Biological, Chemical, and Radiological
Terrorist Events.--
``(1) Study.--The Comptroller General of the United States
shall examine--
``(A) the availability and affordability of insurance
coverage for losses caused by terrorist attacks involving
nuclear, biological, chemical, or radiological materials;
``(B) the outlook for such coverage in the future; and
``(C) the capacity of private insurers and State workers
compensation funds to manage risk associated with nuclear,
biological, chemical, and radiological terrorist events.
``(2) Report.--Not later than 1 year after the date of
enactment of the Terrorism Risk Insurance Program Reauthorization
Act of 2007, the Comptroller General shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a
report containing a detailed statement of the findings under
paragraph (1), and recommendations for any legislative, regulatory,
administrative, or other actions at the Federal, State, or local
levels that the Comptroller General considers appropriate to expand
the availability and affordability of insurance for nuclear,
biological, chemical, or radiological terrorist events.''.
(b) Study and Report on Availability and Affordability of Terrorism
Insurance in Specific Markets.--Section 108 of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the
end the following:
``(g) Availability and Affordability of Terrorism Insurance in
Specific Markets.--
``(1) Study.--The Comptroller General of the United States
shall conduct a study to determine whether there are specific
markets in the United States where there are unique capacity
constraints on the amount of terrorism risk insurance available.
``(2) Elements of study.--The study required by paragraph (1)
shall contain--
``(A) an analysis of both insurance and reinsurance
capacity in specific markets, including pricing and coverage
limits in existing policies;
``(B) an assessment of the factors contributing to any
capacity constraints that are identified; and
``(C) recommendations for addressing those capacity
constraints.
``(3) Report.--Not later than 180 days after the date of
enactment of the Terrorism Risk Insurance Program Reauthorization
Act of 2007, the Comptroller General shall submit a report on the
study required by paragraph (1) to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.''.
(c) Ongoing Reports.--Section 108(e) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
(1) in paragraph (1)--
(A) by inserting ``ongoing'' before ``analysis''; and
(B) by striking ``, including'' and all that follows
through the end of the paragraph, and inserting a period; and
(2) in paragraph (2)--
(A) by inserting ``and thereafter in 2010 and 2013,'' after
``2006,''; and
(B) by striking ``subsection (a)'' and inserting
``paragraph (1)''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.