[Congressional Record Volume 151, Number 19 (Friday, February 18, 2005)]
[Senate]
[Pages S1723-S1724]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself, Mr. Bennett, Mr. Schumer, Mr. Hagel, 
        Mr. Corzine, Mr. Bunning, Mr. Reed, Mr. Lugar, Mrs. Clinton, 
        Mr. Nelson of Nebraska, Mr. Carper, Mrs. Dole, Mr. Chambliss, 
        and Mr. Lautenberg):
  S. 467. A bill to extend the applicability of the Terrorism Risk 
Insurance Act of 2002; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. President, I ask unanimous consent that the text of the bill 
regarding terrorism Risk Insurance be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 467

       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 
     Extension Act of 2005.''.

     SEC. 2. EXTENSION OF TERRORISM RISK INSURANCE PROGRAM.

       (a) Extension of Program Years.--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) Continuing Authority of the Secretary.--Section 108(b) 
     of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
     note, 116 Stat. 2336) is amended by striking ``arising out 
     of'' and all that follows through ``this title''.

     SEC. 3. CONFORMING AMENDMENTS.

       (a) Definitions.--
       (1) 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.
       ``(G) Other 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, or Program Year 5.''.
       (2) Insured losses.--Section 102(5) of the Terrorism Risk 
     Insurance Act of 2002 (15 U.S.C. 6701 note, 116 Stat. 2324) 
     is amended--
       (A) by inserting ``on or before December 31, 2007, as 
     required by this title,'' before ``if such loss'';
       (B) by striking ``(A) occurs within'' and inserting the 
     following:
       ``(A) occurs on or before the earlier of the expiration 
     date of the insurance policy or December 31, 2008; and
       ``(B) occurs--
       ``(i) within''; and
       (C) by striking ``occurs to an air carrier'' and inserting 
     the following:
       ``(ii) to an air carrier''.
       (3) Conforming amendments.--Section 102 of the Terrorism 
     Risk Insurance Act of 2002 (15 U.S.C. 6701 note, 116 Stat. 
     2323) is amended--
       (A) in paragraph (1)(A)(iii)(I), by striking ``(5)(B)'' and 
     inserting ``(5)(B)(ii)''; and
       (B) in paragraph (4), by striking ``subparagraphs (A) and 
     (B)'' and inserting ``subparagraph (B)''.
       (b) Applicable 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)--
       (A) by inserting ``and each Program Year thereafter'' 
     before ``, the value''; and
       (B) by striking ``preceding Program Year 3'' and inserting 
     ``preceding that Program Year''; and
       (2) in subparagraph (E), by striking ``for the Transition'' 
     and all that follows through ``Program Year 3'' and inserting 
     the following: ``for the Transition Period or any Program 
     Year''.
       (c) Continuation of Mandatory Availability.--Section 
     103(c)(1) of the Terrorism Risk Insurance Act of 2002 (15 
     U.S.C. 6701 note, 116 Stat. 2327) is amended--
       (1) by striking ``last day of Program Year 2'' and 
     inserting ``termination date established under section 
     108(a)''; and
       (2) by striking the paragraph heading and inserting ``In 
     general.--''.

[[Page S1724]]

       (d) Duration of Policies.--Section 103(c) of the Terrorism 
     Risk Insurance Act of 2002 (15 U.S.C. 6701 note, 116 Stat. 
     2327) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) Mandatory duration.--Coverage for insured losses 
     required by paragraph (1) under a policy issued at any time 
     during Program Year 5 shall remain in effect for not less 
     than 1 year following the date of issuance of the policy, 
     except that no loss occurring after the earlier of the 
     expiration date of the subject insurance policy or December 
     31, 2008, shall be considered to be an insured loss for 
     purposes of this title.''.
       (e) 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 (2)(A), by striking ``ending on'' and all 
     that follows through ``Program Year 3'' and inserting 
     ``ending on the termination date established under section 
     108(a)''; and
       (2) in paragraph (3), by striking ``ending on'' and all 
     that follows through ``Program Year 3'' and inserting 
     ``ending on the termination date established under section 
     108(a)''.
       (f) Aggregate Retention Amount.--Section 103(e)(6) of the 
     Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note, 
     116 Stat. 2328) 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) $17,500,000,000; 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) $20,000,000,000; and
       ``(ii) the aggregate amount, for all insurers, of insured 
     losses during such Program Year.''.

     SEC. 4. COVERAGE OF GROUP LIFE INSURANCE.

       Section 103 of the Terrorism Risk Insurance Act of 2002 (15 
     U.S.C. 6701 note, 116 Stat. 2327) is amended by striking 
     subsection (h) and inserting the following:
       ``(h) Applicability to Group Life Insurance.--
       ``(1) In general.--The Secretary shall, by rule, apply the 
     provisions of this title to providers of group life 
     insurance, in the manner determined appropriate by the 
     Secretary, consistent with the purposes of this title.
       ``(2) Consistent application.--The rules of the Secretary 
     under this subsection shall, to the extent practicable, apply 
     the provisions of this title to providers of group life 
     insurance in a similar manner as those provisions apply to an 
     insurer otherwise under this title.
       ``(3) Considerations.--In determining the applicability of 
     this title to providers of group life insurance, and the 
     manner of such application, the Secretary shall consider the 
     overall group life insurance market size, and shall consider 
     the establishment of separate retention amounts for such 
     providers.
       ``(4) Rulemaking required.--Not later than 90 days after 
     the date of enactment of the Terrorism Risk Insurance 
     Extension Act of 2005, the Secretary shall issue final 
     regulations to carry out this subsection.
       ``(5) Rule of construction.--Nothing in this subsection may 
     be construed to affect or otherwise alter the applicability 
     of this title to any insurer, as defined in section 102.
       ``(6) Definition.--As used in this subsection, the term 
     `group life insurance' means an insurance contract that 
     provides term life insurance coverage, accidental death 
     coverage, or a combination thereof, for a number of persons 
     under a single contract, on the basis of a group selection of 
     risks.''.

     SEC. 5. RECOMMENDATIONS FOR LONG-TERM SOLUTIONS.

       Section 108 of the Terrorism Risk Insurance Act of 2002 (15 
     U.S.C. 6701 note, 116 Stat. 2328) is amended by adding at the 
     end the following:
       ``(e) Recommendations for Long-Term Solutions.--The 
     Presidential Working Group on Financial Markets shall, in 
     consultation with the NAIC, representatives of the insurance 
     industry, and representatives of policy holders, not later 
     than June 30, 2006, submit a report to Congress containing 
     recommendations for legislation to address the long-term 
     availability and affordability of insurance for terrorism 
     risk.''.

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