Commission on Terrorism Risk Insurance Act - Amends the Terrorism Risk Insurance Act of 2002 to establish the Commission on Terrorism Risk Insurance.
Directs the Commission to identify and make recommendations regarding actions to: (1) encourage, facilitate, and sustain provision by the private domestic insurance industry of affordable coverage for losses due to acts of terrorism; (2) sustain or supplement the ability of the domestic insurance industry to cover losses resulting from acts of terrorism; (3) reduce the federal role over time in any continuing federal terrorism risk insurance program; and (4) evaluate whether coverage under the Terrorism Insurance Program is necessary to permit redevelopment at sites of previous acts of terrorism.
Instructs the Commission to evaluate and makes recommendations on the need for a federal terrorism risk insurance program.
Requires the Terrorism Insurance Program to remain in effect, but only to cover insured losses under property and casualty insurance issued on or before December 31, 2008, if the Commission determines that the market will not provide for renewal or generation of new insurance contracts necessary to permit redevelopment at the site of a previous act of terrorism.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4619 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4619
To amend the Terrorism Risk Insurance Act of 2002 to establish a
Commission on Terrorism Risk Insurance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 17, 2005
Mr. Fossella (for himself, Mr. Sweeney, Mr. McHugh, Mrs. Maloney, Mr.
Reynolds, and Mr. King of New York) 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 establish a
Commission on Terrorism Risk Insurance, 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.
This Act may be cited as the ``Commission on Terrorism Risk
Insurance Act of 2005''.
SEC. 2. ESTABLISHMENT OF COMMISSION ON TERRORISM RISK INSURANCE.
Title I of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701
note) is amended by adding at the end the following new section:
``SEC. 109. COMMISSION ON TERRORISM RISK INSURANCE.
``(a) In General.--There is hereby established the Commission on
Terrorism Risk Insurance (in this section referred to as the
`Commission').
``(b) Membership.--
``(1) The Commission shall consist of 11 members, as
follows:
``(A) The Secretary of the Treasury or the
Secretary's designee.
``(B) One State insurance commissioner designated
by the members of the NAIC.
``(C) Nine members appointed by the President, who
shall be--
``(i) a representative of State
legislatively created workers' compensation
funds;
``(ii) a representative of property and
casualty insurers with direct written premium
of $1,000,000,000 or less;
``(iii) a representative of property and
casualty insurers with direct written premium
of more than $1,000,000,000;
``(iv) a representative of multiline
insurers;
``(v) a representative of independent
insurance agents;
``(vi) a representative of insurance
brokers;
``(vii) a policyholder representative;
``(viii) a representative of the survivors
of the victims of the attacks of September 11,
2001; and
``(ix) a representative of the reinsurance
industry.
``(2) Secretary.--The Program Director of the Terrorism
Risk Insurance Act shall serve as Secretary of the Commission.
The Secretary of the Commission shall determine the manner in
which the Commission shall operate, including funding and
staffing.
``(c) Duties.--
``(1) In general.--The Commission shall identify and make
recommendations regarding--
``(A) possible actions to encourage, facilitate,
and sustain provision by the private insurance industry
in the United States of affordable coverage for losses
due to an act or acts of terrorism;
``(B) possible actions or mechanisms to sustain or
supplement the ability of the insurance industry in the
United States to cover losses resulting from acts of
terrorism in the event that--
``(i) such losses jeopardize the capital
and surplus of the insurance industry in the
United States as a whole; or
``(ii) other consequences from such acts
occur, as determined by the Commission, that
may significantly affect the ability of the
insurance industry in the United States to
independently cover such losses; and
``(C) significantly reducing the expected Federal
role over time in any continuing Federal terrorism risk
insurance program.
``(2) Evaluations.--In identifying and making the
recommendations required under paragraph (1), the Commission
shall specifically evaluate the utility and viability of risk-
sharing mechanisms under which insurers voluntarily reinsure
terrorism losses between and among themselves that are not
subject to reimbursement under section 103, a Federally created
or mandated reinsurance facility, empowering such a facility to
issue pre-event financing bonds, post-event financing bonds,
assessments, single or multiple pooling arrangements, and other
risk sharing arrangements to accomplish, in whole or in part,
the specified objectives.
``(3) Redevelopment assessment.--The Commission shall also
evaluate whether or not coverage under the Program under this
Act is necessary to permit redevelopment at the sites of any
previous acts of terrorism. If the Commission determines that
the market will not provide for renewal of, or generation of
new, insurance contracts necessary to permit such
redevelopment, the Commission shall recommend coverage under
the Program under this Act, or a variation of such Program,
that will facilitate the completion of such a redevelopment
project.
``(4) Report.--
``(A) In general.--Not later than the date
determined under subparagraph (B), the Commission shall
submit a report to the Secretary and the Congress
that--
``(i) evaluates and makes recommendations
regarding whether there is a need for a Federal
terrorism risk insurance program and, if so,
makes a specific, detailed recommendation for
the replacement of the Program, including
specific, detailed recommendations for the
creation of a terrorism reinsurance facility or
facilities or single or multiple pooling
arrangements, or both; and
``(ii) includes the evaluation,
determination, and any recommendation required
under paragraph (3).
``(B) Timing.--The date determined under this
subparagraph is--
``(i) except as provided in clause (ii),
the date that occurs 6 months after the date of
the enactment of this Act; or
``(ii) the date of such termination of the
Program (as so extended), if, before the the
date under clause (i), the date of the
termination of the Program under this Act is
extended to a date that occurs after such date
under clause (i) .''.
SEC. 3. EXTENSION OF PROGRAM TO PROVIDE FOR REDEVELOPMENT OF PREVIOUS
TERRORISM SITES.
Section 108(a) of the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note) is amended--
(1) by striking ``(a) Termination of Program.--The
Program'' and inserting the following:
``(a) Termination of Program.--
``(1) In general.--Except as provided in paragraph (2), the
Program''; and
(2) by adding at the end the following new paragraphs:
``(2) Extension of program to provide for redevelopment of
previous terrorism sites.--If the Commission determines in the
report submitted to the Secretary pursuant to section 109(c)(4)
that the market will not provide for renewal of, or generation
of new, insurance contracts necessary to permit redevelopment
at the site of a previous act of terrorism, the Program shall
remain in effect as provided under paragraph (3) and the
Secretary shall immediately take such action as may be
necessary to extend the Program in accordance with paragraph
(3) and the recommendations of the Commission set forth in such
report.
``(3) Scope of extended program.--If the Program is
extended pursuant to paragraph (2), the Program--
``(A) shall provide coverage, during such
extension, only with respect to insured losses under
property and casualty insurance coverage (including
builder's risk policies) as the Secretary determines is
appropriate and in accordance with the recommendations
in the report of the Commission under section
109(c)(4), to permit redevelopment at the site of a
previous act or terrorism; and
``(B) shall remain in effect as provided under
subparagraph (A) only with respect to any contracts for
such property and casualty insurance in connection with
such redevelopment that are issued on or before
December 31, 2008.''.
SEC. 4. COVERAGE OF DOMESTIC 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,''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
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