[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4299 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4299

  To extend the Terrorism Insurance Program of the Department of the 
                   Treasury, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2007

  Mr. Frank of Massachusetts introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  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. 6. Coverage of group life insurance.
Sec. 7. Large event reset.
Sec. 8. Availability of life insurance without regard to lawful foreign 
                            travel.
Sec. 9. Program trigger.
Sec. 10. Applicability.

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)''.

SEC. 6. COVERAGE OF GROUP LIFE INSURANCE.

    (a) Findings and Purpose.--Section 101 of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (6) as paragraph 
                (8); and
                    (C) by inserting after paragraph (5) the following 
                new paragraphs:
            ``(6) group life insurance companies are important 
        financial institutions whose products make life insurance 
        coverage affordable for millions of Americans and often serve 
        as their only life insurance benefit;
            ``(7) the group life insurance industry, in the event of a 
        severe act of terrorism, is vulnerable to insolvency because 
        high concentrations of covered employees work in the same 
        locations, because primary group life insurers do not exclude 
        terrorism risks while most catastrophic reinsurance does 
        exclude such risks, and because a large-scale loss of life 
        would fall outside of actuarial expectations of death; and''; 
        and
            (2) in subsection (b)(1), by inserting ``and group life 
        insurance'' after ``property and casualty insurance''.
    (b) Definitions.--Section 102 of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note), as amended by the preceding provisions 
of this Act, is further amended--
            (1) in paragraph (1)(B)(ii), by inserting ``and group life 
        insurance'' before ``losses'';
            (2) in paragraph (5), in the matter preceding subparagraph 
        (A)--
                    (A) by inserting ``, or group life insurance to the 
                extent of the amount at risk,'' after ``property and 
                casualty insurance'';
                    (B) by inserting a comma after ``insurer''; and
                    (C) by adding after and below subparagraph (B) the 
                following:
        ``Such term shall not include any losses of an insurer 
        resulting from coverage of any single certificate holder under 
        any group life insurance coverages of the insurer to the extent 
        such losses are not compensated under the Program by reason of 
        section 103(e)(1)(D).'';
            (3) in paragraph (6)--
                    (A) in subparagraph (A)(i), by inserting ``, or 
                group life insurance,'' after ``excess insurance''; and
                    (B) in subparagraph (B), by inserting ``or, in the 
                case of group life insurance, that receives direct 
                premiums,'' after ``insurance coverage,'';
            (4) in paragraph (7)--
                    (A) in subparagraph (F)--
                            (i) by striking the first comma and 
                        inserting ``(i) with respect to property and 
                        casualty insurance,''; and
                            (ii) by inserting before the semicolon the 
                        following: ``(ii) with respect to group life 
                        insurance, the value of an insurer's amount at 
                        risk for a covered line of insurance over the 
                        calendar year immediately preceding such 
                        Program Year, multiplied by 0.0351 percent'';
                    (B) in subparagraph (G)--
                            (i) by inserting ``with respect to property 
                        and casualty insurance, and such portion of the 
                        amounts at risk with respect to group life 
                        insurance,'' after ``such portion of the direct 
                        earned premiums''; and
                            (ii) by inserting ``and amounts at risk'' 
                        after ``such direct earned premiums'';
            (5) by redesignating paragraph (16) as paragraph (18); and
            (6) by inserting after paragraph (15) the following new 
        paragraphs:
            ``(16) Group life insurance.--The term `group life 
        insurance' means an insurance contract that provides life 
        insurance coverage, including term life insurance coverage, 
        universal life insurance coverage, variable universal life 
        insurance coverage, and accidental death coverage, or a 
        combination thereof, for a number of individuals under a single 
        contract, on the basis of a group selection of risks, but does 
        not include `Corporate Owned Life Insurance' or `Business Owned 
        Life Insurance,' each as defined under the Internal Revenue 
        Code of 1986, or any similar product, or group life reinsurance 
        or retrocessional reinsurance.
            ``(17) Amount at risk.--The term `amount at risk' means 
        face amount less statutory policy reserves for group life 
        insurance issued by any insurer for insurance against losses 
        occurring at the locations described in subparagraph (A) of 
        paragraph (5).''.
    (c) Mandatory Availability.--Section 103(c) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking 
``During each Program Year'' and all that follows through ``property 
and casualty insurance'' in paragraph (2) and inserting the following:
            ``(1) Availability of coverage for insured losses.--During 
        each Program Year, each entity that meets the definition of an 
        insurer under section 102 shall make available, in all of its 
        insurance policies for property and casualty insurance and in 
        all of its insurance policies for group life insurance,''.
    (d) Federal Share of Compensation.--Section 103(e)(1) of the 
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended 
by adding at the end the following new subparagraph:
                    ``(D) Limitation on compensation for group life 
                insurance.--Notwithstanding any other provision of this 
                Act, the Federal share of compensation under the 
                Program paid by the Secretary for insured losses of an 
                insurer resulting from coverage of any single 
                certificate holder under any group life insurance 
                coverages of the insurer may not during any Program 
                Year exceed $1,000,000.''.
    (e) Separate Retention Pool.--Section 103(e)(6)(E) of the Terrorism 
Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking 
clauses (i) and (ii) and inserting the following new clauses:
                            ``(i) for property and casualty insurance, 
                        the lesser of--
                                    ``(I) $27,500,000,000; and
                                    ``(II) the aggregate amount, for 
                                all such insurance, of insured losses 
                                during such Program Year; and
                            ``(ii) for group life insurance, the lesser 
                        of--
                                    ``(I) $5,000,000,000; and
                                    ``(II) the aggregate amount, for 
                                all such insurance, of insured losses 
                                during such Program Year.''.
    (f) Separate Recoupment.--Section 103(e)(7) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note), as amended by the 
preceding provisions of this Act, is further amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by inserting ``applicable'' 
                before ``insurance''; and
                    (B) in clause (ii), by striking ``all insurers'' 
                and inserting ``all applicable insurers (pursuant to 
                subparagraph (G))'';
            (2) in subparagraph (B)--
                    (A) in the heading, by inserting ``applicable'' 
                before ``insurance''; and
                    (B) by inserting ``applicable'' before 
                ``insurance''; and
            (3) by adding at the end the following new subparagraph:
                    ``(G) Separate recoupment.--``The Secretary shall 
                provide that--
                            ``(i) any recoupment under this paragraph 
                        of amounts paid for Federal financial 
                        assistance for insured losses for property and 
                        casualty insurance shall be applied to property 
                        and casualty insurance policies; and
                            ``(ii) any recoupment under this paragraph 
                        of amounts paid for Federal financial 
                        assistance for insured losses for group life 
                        insurance shall be applied to group life 
                        insurance policies.''.
    (g) Policy Surcharge for Terrorism Loss Risk-Spreading Premiums.--
Section 103(e)(8) of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking 
                ``Any'' and inserting ``Subject to paragraph (7)(G), 
                any'';
                    (B) in clause (i), by inserting ``and group life 
                insurance policies'' after ``policies''; and
                    (C) by striking clause (iii) and inserting the 
                following new clause:
                            ``(iii) be based on--
                                    ``(I) a percentage of the premium 
                                amount charged for property and 
                                casualty insurance coverage under the 
                                policy; and
                                    ``(II) a percentage of the amount 
                                at risk for group life insurance 
                                coverage under the policy.''; and
            (2) in subparagraph (C)--
                    (A) by inserting ``with respect to property and 
                casualty insurance,'' after ``annual basis,''; and
                    (B) by inserting before the period at the end the 
                following: ``and, with respect to group life insurance, 
                the amount equal to 0.0053 percent of the amount at 
                risk for covered lines under the policy''.

SEC. 7. LARGE EVENT RESET.

    The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is 
amended--
            (1) in section 102(7)--
                    (A) in subparagraph (F), by striking ``and'' at the 
                end;
                    (B) in subparagraph (G), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(H) notwithstanding subparagraph (F)(i), if 
                aggregate industry insured losses resulting from a 
                certified act of terrorism exceed $1,000,000,000, for 
                any insurer that sustains insured losses resulting from 
                such act of terrorism, the value of such insurer's 
                direct earned premiums over the calendar year 
                immediately preceding the Program Year, multiplied by a 
                percentage, which--
                            ``(i) for the Program Year consisting of 
                        calendar year 2008 shall be 5 percent; and
                            ``(ii) for each Program Year thereafter, 
                        shall be 50 basis points greater than the 
                        percentage applicable to the preceding Program 
                        Year, except that if an act of terrorism occurs 
                        during any such Program Year that results in 
                        aggregate industry insured losses exceeding 
                        $1,000,000,000, the percentage for the 
                        succeeding Program Year shall be 5 percent and 
                        the increase under this clause shall apply to 
                        Program Years thereafter;
                except that for purposes of determining under this 
                subparagraph whether aggregate industry insured losses 
                exceed $1,000,000,000, the Secretary may combine 
                insured losses resulting from two or more certified 
                acts of terrorism occurring during such Program Year in 
                the same geographic area (with such area determined by 
                the Secretary), in which case such insurer shall be 
                permitted to combine insured losses resulting from such 
                acts of terrorism for purposes of satisfying its 
                insurer deductible under this subparagraph; and except 
                that the insurer deductible under this subparagraph 
                shall apply only with respect to compensation of 
                insured losses resulting from such certified act, or 
                combined certified acts, and that for purposes of 
                compensation of any other insured losses occurring in 
                the same Program Year, the insurer deductible 
                determined under subparagraph (F)(i) shall apply.''; 
                and
            (2) in section 103(e)(1)(B)--
                    (A) in clause (ii), by striking the period at the 
                end and inserting a semicolon; and
                    (B) by adding after and below clause (ii) the 
                following:
                ``except that if a certified act of terrorism occurs 
                for which resulting aggregate industry insured losses 
                exceed $1,000,000,000, the applicable amount for any 
                subsequent certified act of terrorism shall be the 
                amount specified in section 102(1)(B)(ii).''.

SEC. 8. AVAILABILITY OF LIFE INSURANCE WITHOUT REGARD TO LAWFUL FOREIGN 
              TRAVEL.

    Section 103(c) of the Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new paragraph:
            ``(2) Availability of life insurance without regard to 
        lawful foreign travel.--During each Program Year, each entity 
        that meets the definition of an insurer under section 102 and 
        any other entity that issues insurance contracts that provide 
        life insurance coverage shall make available, in all of its 
        life insurance policies issued after the date of the enactment 
        of the Terrorism Risk Insurance Program Reauthorization Act of 
        2007 under which the insured person is a citizen of the United 
        States or an alien lawfully admitted for permanent residence in 
        the United States, coverage that neither considers past, nor 
        precludes future, lawful foreign travel by the person insured, 
        and shall not decline such coverage based on past or future, 
        lawful foreign travel by the person insured or charge a premium 
        for such coverage that is excessive and not based on a good 
        faith actuarial analysis, except that an insurer may decline 
        or, upon inception or renewal of a policy, limit the amount of 
        coverage provided under any life insurance policy based on 
        plans to engage in future lawful foreign travel to occur within 
        12 months of such inception or renewal of the policy but only 
        if, at time of application--
                    ``(A) such declination is based on, or such 
                limitation applies only with respect to, travel to a 
                foreign destination--
                            ``(i) for which the Director of the Centers 
                        for Disease Control and Prevention of the 
                        Department of Health and Human Services has 
                        issued a highest level alert or warning, 
                        including a recommendation against non-
                        essential travel, due to a serious health-
                        related condition;
                            ``(ii) in which there is an ongoing 
                        military conflict involving the armed forces of 
                        a sovereign nation other than the foreign 
                        destination to which the insured person is 
                        traveling; or
                            ``(iii)(I) that the insurer has 
                        specifically designated in the terms of the 
                        life insurance policy at the inception of the 
                        policy or at renewal, as applicable; and
                            ``(II) with respect to which the insurer 
                        has made a good-faith determination that--
                                    ``(aa) a serious fraudulent 
                                situation exists which is ongoing; and
                                    ``(bb) the credibility of 
                                information by which the insurer can 
                                verify the death of the insured person 
                                is substantially compromised; and
                    ``(B) in the case of any limitation of coverage, 
                such limitation is specifically stated in the terms of 
                the life insurance policy at the inception of the 
                policy or at renewal, as applicable.''.

SEC. 9. PROGRAM TRIGGER.

    Section 103(e)(1)(B)(ii) of the Terrorism Risk Insurance Act of 
2002 (15 U.S.C. 6701 note) is amended by striking ``$100,000,000'' and 
inserting ``$50,000,000''.

SEC. 10. APPLICABILITY.

    The amendments made by this Act shall apply beginning on January 1, 
2008. The provisions of the Terrorism Risk Insurance Act of 2002, as in 
effect on the day before the date of the enactment of this Act, shall 
apply through the end of December 31, 2007.
                                 <all>