(This measure has not been amended since it was passed by the Senate with an amendment to the House passed version on December 16, 2005. The summary of that version is repeated here.)
Terrorism Risk Insurance Extension Act of 2005 - Amends the Terrorism Risk Insurance Act of 2002 to extend the terrorism risk insurance program from 2005 through 2007.
Defines Program Year 5 as ending on December 31, 2007.
Excludes from covered lines of insurance: (1) commercial automobile insurance; (2) burglary and theft insurance; (3) surety insurance; (4) professional liability insurance; and (5) farm owners multiple peril insurance.
Prescribes formulae for insurer deductibles for Program Years 4 and 5.
Sets the federal share of insured loss compensation for Program Year 5 at 85% (Year 4 is currently 90%) of the amount of insured losses exceeding the applicable insurer deductible.
Specifies for Program Years 4 and 5 increasing maximum aggregate retention amounts in the formula for mandatory recoupment of the federal share of insured loss compensation paid.
States that compensation for a certified act of terrorism occurring after March 31, 2006, shall be paid only if the aggregate industry insured losses exceed either: (1) $50 million occurring in Program Year 4; or (2) $100 million occurring in Program Year 5.
States that procedures and requirements for advance approval of settlements established by the Secretary are applicable to any cause of action for damages in connection with a determination by the Secretary that an act of terrorism has occurred.
Directs the President's Working Group on Financial Markets to analyze and report to certain congressional committees on the long-term availability and affordability of insurance for terrorism risk, including: (1) group life coverage; and (2) coverage for chemical, nuclear, biological, and radiological events.
[109th Congress Public Law 144]
[From the U.S. Government Publishing Office]
[DOCID: f:publ144.109]
[[Page 2659]]
TERRORISM RISK INSURANCE EXTENSION ACT OF 2005
[[Page 119 STAT. 2660]]
Public Law 109-144
109th Congress
An Act
To extend the applicability of the Terrorism Risk Insurance Act of
2002. <<NOTE: Dec. 22, 2005 - [S. 467]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Terrorism Risk
Insurance Extension Act of 2005.>>
SECTION 1. <<NOTE: 15 USC 6701 note.>> 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) Program Extension.--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) Mandatory Availability.--Section 103(c) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2327) is amended--
(1) by striking paragraph (2);
(2) by striking ``AVAILABILITY.--'' and all that follows
through ``each entity'' and inserting ``AVAILABILITY.--During
each Program Year, each entity''; and
(3) by redesignating subparagraphs (A) and (B) as paragraphs
(1) and (2), respectively, and moving the margins 2 ems to the
left.
SEC. 3. AMENDMENTS TO DEFINED TERMS.
(a) 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.''.
(b) Exclusions From Covered Lines.--
(1) In general.--Section 102(12)(B) of the Terrorism Risk
Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326) is
amended--
(A) in clause (vi), by striking ``or'' at the end;
(B) in clause (vii), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(viii) commercial automobile insurance;
``(ix) burglary and theft insurance;
``(x) surety insurance;
[[Page 119 STAT. 2661]]
``(xi) professional liability insurance; or
``(xii) farm owners multiple peril
insurance.''.
(2) Conforming amendment.--Section 102(12)(A) of the
Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116
Stat. 2326) is amended by striking ``surety insurance'' and
inserting ``directors and officers liability insurance''.
(c) 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), by striking ``and'' at the end;
(2) by redesignating subparagraph (E) as subparagraph (G);
(3) by inserting after subparagraph (D), the following:
``(E) for Program Year 4, the value of an insurer's
direct earned premiums over the calendar year
immediately preceding Program Year 4, multiplied by 17.5
percent;
``(F) for Program Year 5, the value of an insurer's
direct earned premiums over the calendar year
immediately preceding Program Year 5, multiplied by 20
percent; and''; and
(4) in subparagraph (G), as so redesignated, by striking
``through (D)'' and all that follows through ``Year 3'' and
inserting the following: ``through (F), for the Transition
Period or any Program Year''.
SEC. 4. 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 (1)--
(A) by inserting ``through Program Year 4'' before
``shall be equal''; and
(B) by inserting ``, and during Program Year 5 shall
be equal to 85 percent,'' after ``90 percent''; and
(2) in each of paragraphs (2) and (3), by striking ``Program
Year 2 or Program Year 3'' each place that term appears and
inserting ``any of Program Years 2 through 5''.
SEC. 5. AGGREGATE RETENTION AMOUNTS AND RECOUPMENT OF FEDERAL SHARE.
(a) Aggregate Retention Amounts.--Section 103(e)(6) of the Terrorism
Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2329) 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) $25,000,000,000; 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) $27,500,000,000; and
``(ii) the aggregate amount, for all insurers,
of insured losses during such Program Year.''.
(b) Recoupment of Federal Share.--Section 103(e)(7) of the Terrorism
Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2329) is
amended--
[[Page 119 STAT. 2662]]
(1) in subparagraph (A), by striking ``, (B), and (C)'' and
inserting ``through (E)''; and
(2) in each of subparagraphs (B) and (C), by striking
``subparagraph (A), (B), or (C)'' each place that term appears
and inserting ``any of subparagraphs (A) through (E)''.
SEC. 6. PROGRAM TRIGGER.
Section 103(e)(1) of the Terrorism Risk Insurance Act of 2002 (15
U.S.C. note, 116 Stat. 2328) <<NOTE: 15 USC 6701 note.>> is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) by inserting after subparagraph (A) the following:
``(B) <<NOTE: Effective date.>> Program trigger.--In
the case of a certified act of terrorism occurring after
March 31, 2006, no compensation shall be paid by the
Secretary under subsection (a), unless the aggregate
industry insured losses resulting from such certified
act of terrorism exceed--
``(i) $50,000,000, with respect to such
insured losses occurring in Program Year 4; or
``(ii) $100,000,000, with respect to such
insured losses occurring in Program Year 5.''.
SEC. 7. LITIGATION MANAGEMENT.
Section 107(a) of the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note; 116 Stat. 2335) is amended by adding at the end the
following:
``(6) <<NOTE: Applicability.>> Authority of the secretary.--
Procedures and requirements established by the Secretary under
section 50.82 of part 50 of title 31 of the Code of Federal
Regulations (as in effect on the date of issuance of that
section in final form) shall apply to any cause of action
described in paragraph (1) of this subsection.''.
SEC. 8. ANALYSIS AND REPORT ON TERRORISM RISK COVERAGE CONDITIONS AND
SOLUTIONS.
Section 108 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C.
6701 note; 116 Stat. 2336) is amended by adding at the end the
following:
``(e) Analysis of Market Conditions for Terrorism Risk Insurance.--
``(1) In general.--The President's Working Group on
Financial Markets, in consultation with the National Association
of Insurance Commissioners, representatives of the insurance
industry, representatives of the securities industry, and
representatives of policy holders, shall perform an analysis
regarding the long-term availability and affordability of
insurance for terrorism risk, including--
``(A) group life coverage; and
``(B) coverage for chemical, nuclear, biological,
and radiological events.
``(2) Report.--Not later than September 30, 2006, the
President's Working Group on Financial Markets shall submit a
report to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services
[[Page 119 STAT. 2663]]
of the House of Representatives on its findings pursuant to the
analysis conducted under subsection (a).''.
Approved December 22, 2005.
LEGISLATIVE HISTORY--S. 467 (H.R. 4314):
---------------------------------------------------------------------------
HOUSE REPORTS: No. 109-327 accompanying H.R. 4314 (Comm. on Financial
Services).
CONGRESSIONAL RECORD, Vol. 151 (2005):
Nov. 17, considered and passed Senate.
Dec. 7, considered and passed House, amended.
Dec. 16, Senate concurred in House amendment with an
amendment.
Dec. 17, House concurred in Senate amendment.
<all>
The Speaker appointed conferees - from the Committee on Financial Services for consideration of the Senate bill and the House amendment, and modifications committed to conference: Oxley, Baker, Pryce (OH), Kelly, Kanjorski, Capuano, and Crowley.
The Speaker appointed conferees Provided that Mr. Israel is appointed in lieu of Mr. Capuano for consideration of secs. 4, 5, and 7 of the Senate bill, and secs. 103 and 105 of the House amendment, and modifications committed to conference.
The Speaker appointed conferees - from the Committee on the Judiciary for consideration of secs. 2 and 6 of the Senate bill and modifications committed to conference: Sensenbrenner, Goodlatte, and Conyers.
The Speaker appointed a conferee for consideration of the Senate bill and the House amendment, and modifications committed to conference: Sessions.
Message on House action received in Senate and at desk: House amendment to Senate bill.
Resolving differences -- Senate actions: Senate concurred in House amendment with an amendment (SA 2689) Unanimous Consent.(consideration: CR S13931-13934; text as Senate agreed to House amendment with amendment: CR S13933)
Senate concurred in House amendment with an amendment (SA 2689) Unanimous Consent. (consideration: CR S13931-13934; text as Senate agreed to House amendment with amendment: CR S13933)
Message on Senate action sent to the House.
Mr. Oxley moved that the House suspend the rules and agree to the Senate amendment to the House amendment. (consideration: CR H12135-12141)
Enacted as Public Law 109-144
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DEBATE - The House proceeded with forty minutes of debate on the motion to suspend the rules and agree to the Senate amendment to the House amendment to S. 467.
Resolving differences -- House actions: On motion that the House suspend the rules and agree to the Senate amendment to the House amendment Agreed to by voice vote.(text as House agreed to Senate amendment: CR H12136)
On motion that the House suspend the rules and agree to the Senate amendment to the House amendment Agreed to by voice vote. (text as House agreed to Senate amendment: CR H12136)
Motion to reconsider laid on the table Agreed to without objection.
Cleared for White House.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 109-144.
Became Public Law No: 109-144.