110 HR 4721 IH: Terrorism Risk Insurance Improvement U.S. House of Representatives 2007-12-17 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 4721 IN THE HOUSE OF REPRESENTATIVES December 17, 2007 Mr. Ackerman introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Terrorism Risk Insurance Act of 2002 to temporarily reduce the insurer deductibles for insurers sustaining insured losses from large terrorism events.

1.

Short title

This Act may be cited as the Terrorism Risk Insurance Improvement Act of 2007.

2.

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) 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). .