[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2621 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2621

   To amend the Terrorism Risk Insurance Act of 2002, to temporarily 
 reduce the insurer deductibles for insurers sustaining insured losses 
                      from large terrorism events.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2008

  Mr. Schumer introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 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.

    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 Improvement 
Act of 2008''.

SEC. 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).''.
                                 <all>