Terrorism Insurance Extension Act of 2004 - Amends the Terrorism Risk Insurance Act of 2002 (TRIA) to extend the terrorism risk insurance program from 2005 through 2007.
Repeals the condition on the authority of the Secretary of the Treasury to pay or adjust compensation for insured losses after termination of the program that limits such losses to those arising from an act of terrorism occurring only during the period in which the program was in effect.
Defines "Program Year 4" as calendar 2006 and "Program Year 5" as calendar 2007.
Increases the insurance marketplace aggregate retention amount for Program Years 4 and 5.
Directs the Secretary to apply TRIA to providers of group life insurance.
Instructs the Presidential Working Group on Financial Markets to report to Congress its recommendations for legislation to address the long-term availability and affordability of insurance for terrorism risk.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2764 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2764
To extend the applicability of the Terrorism Risk Insurance Act of
2002.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 22, 2004
Mr. Dodd (for himself, Mr. Bennett, Mr. Schumer, Mr. Hagel, Mr. Reed,
Mr. Bunning, Mr. Carper, Mr. Crapo, Mr. Reid, Mrs. Dole, Mr. Nelson of
Nebraska, and Mr. Chafee) introduced the following bill; which was read
twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
A BILL
To extend the applicability of the Terrorism Risk Insurance Act of
2002.
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 2004''.
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.--''.
(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 2004, 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.''.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S8752-8753)
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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