H.R. 2761 — Terrorism Risk Insurance Program Reauthorization Act of 2007

[110th Congress Public Law 160]
[From the U.S. Government Publishing Office]


[DOCID: f:publ160.110]

[[Page 121 STAT. 1839]]

Public Law 110-160
110th Congress

                                 An Act


 
   To extend the Terrorism Insurance Program of the Department of the 
    Treasury, and for other purposes. <<NOTE: Dec. 26, 2007 -  [H.R. 
                                2761]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Terrorism Risk Insurance 
Program Reauthorization Act of 2007.>> assembled,

SECTION 1. <<NOTE: 15 USC 6701 note.>> SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Terrorism Risk 
Insurance Program Reauthorization Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of act of terrorism.
Sec. 3. Reauthorization of the Program.
Sec. 4. Annual liability cap.
Sec. 5. Enhanced reports to Congress.

SEC. 2. DEFINITION OF ACT OF 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''.

SEC. 3. REAUTHORIZATION OF THE PROGRAM.

    (a) Termination Date.--Section 108(a) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking 
``2007'' and inserting ``2014''.
    (b) Additional Program Years.--Section 102(11) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the 
end the following:
                    ``(G) Additional 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, Program Year 5, or any of calendar years 2008 
                through 2014.''.

    (c) Conforming Amendments.--The Terrorism Risk Insurance Act of 2002 
(15 U.S.C. 6701 note) is amended--
            (1) in section 102(7)(F)--
                    (A) by inserting ``and each Program Year 
                thereafter'' before ``, the value''; and
                    (B) by striking ``preceding Program Year 5'' and 
                inserting ``preceding that Program Year'';
            (2) in section 103(e)(1)(A), <<NOTE: 15 USC 6701 note.>> by 
        inserting ``and each Program Year thereafter'' after ``Year 5'';
            (3) in section 103(e)(1)(B)(ii), by inserting before the 
        period at the end ``and any Program Year thereafter'';

[[Page 121 STAT. 1840]]

            (4) in section 103(e)(2)(A), by striking ``of Program Years 
        2 through 5'' and inserting ``Program Year thereafter'';
            (5) in section 103(e)(3), by striking ``of Program Years 2 
        through 5,'' and inserting ``other Program Year''; and
            (6) in section 103(e)(6)(E), by inserting ``and any Program 
        Year thereafter'' after ``Year 5''.

SEC. 4. <<NOTE: Deadlines.>> ANNUAL LIABILITY CAP.

    (a) In General.--Section 103(e)(2) of the Terrorism Risk Insurance 
Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``(until such time as the Congress 
                may act otherwise with respect to such losses)''; and
                    (B) in clause (ii), by striking ``that amount'' and 
                inserting ``the amount of such losses''; and
            (2) in subparagraph (B), by inserting before the period at 
        the end ``, except that, notwithstanding paragraph (1) or any 
        other provision of Federal or State law, no insurer may be 
        required to make any payment for insured losses in excess of its 
        deductible under section 102(7) combined with its share of 
        insured losses under paragraph (1)(A) of this subsection''.

    (b) Notice to Congress.--Section 103(e)(3) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) by adding at the end the following: ``The Secretary 
        shall provide an initial notice to Congress not later than 15 
        days after the date of an act of terrorism, stating whether the 
        Secretary estimates that aggregate insured losses will exceed 
        $100,000,000,000.''; and
            (2) by striking ``and the Congress shall'' and all that 
        follows through the end of the paragraph and inserting a period.

    (c) Regulations for Pro Rata Payments; Report to Congress.--Section 
103(e)(2)(B) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
note) is amended--
            (1) by striking ``For purposes'' and inserting the 
        following:
                          ``(i) In general.--For purposes''; and
            (2) by adding at the end the following:
                          ``(ii) Regulations.--Not later than 240 days 
                      after the date of enactment of the Terrorism Risk 
                      Insurance Program Reauthorization Act of 2007, the 
                      Secretary shall issue final regulations for 
                      determining the pro rata share of insured losses 
                      under the Program when insured losses exceed 
                      $100,000,000,000, in accordance with clause (i).
                          ``(iii) Report to congress.--Not later than 
                      120 days after the date of enactment of the 
                      Terrorism Risk Insurance Program Reauthorization 
                      Act of 2007, the Secretary shall provide a report 
                      to the Committee on Banking, Housing, and Urban 
                      Affairs of the Senate and the Committee on 
                      Financial Services of the House of Representatives 
                      describing the process to be used by the Secretary 
                      for determining the allocation of pro rata 
                      payments for insured losses under the Program when 
                      such losses exceed $100,000,000,000.''.

    (d) Disclosure.--Section 103(b) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and

[[Page 121 STAT. 1841]]

            (2) by inserting after paragraph (2) the following:
            ``(3) in the case of any policy that is issued after the 
        date of enactment of the Terrorism Risk Insurance Program 
        Reauthorization Act of 2007, the insurer provides clear and 
        conspicuous disclosure to the policyholder of the existence of 
        the $100,000,000,000 cap under subsection (e)(2), at the time of 
        offer, purchase, and renewal of the policy;''.

    (e) Surcharges.--Section 103(e) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in paragraph (7)--
                    (A) in subparagraph (C), by inserting ``133 percent 
                of'' before ``any mandatory recoupment''; and
                    (B) by adding at the end the following:
                    ``(E) Timing of mandatory recoupment.--
                          ``(i) In general.--If the Secretary is 
                      required to collect terrorism loss risk-spreading 
                      premiums under subparagraph (C)--
                                    ``(I) for any act of terrorism that 
                                occurs on or before December 31, 2010, 
                                the Secretary shall collect all required 
                                premiums by September 30, 2012;
                                    ``(II) for any act of terrorism that 
                                occurs between January 1 and December 
                                31, 2011, the Secretary shall collect 35 
                                percent of any required premiums by 
                                September 30, 2012, and the remainder by 
                                September 30, 2017; and
                                    ``(III) for any act of terrorism 
                                that occurs on or after January 1, 2012, 
                                the Secretary shall collect all required 
                                premiums by September 30, 2017.
                          ``(ii) Regulations required.--Not later than 
                      180 days after the date of enactment of this 
                      subparagraph, the Secretary shall issue 
                      regulations describing the procedures to be used 
                      for collecting the required premiums in the time 
                      periods referred to in clause (i).
                    ``(F) Notice of estimated losses.--
                Not <<NOTE: Publication.>> later than 90 days after the 
                date of an act of terrorism, the Secretary shall publish 
                an estimate of aggregate insured losses, which shall be 
                used as the basis for determining whether mandatory 
                recoupment will be required under this paragraph. Such 
                estimate shall be updated as appropriate, and at least 
                annually.''; and
            (2) in paragraph (8)--
                    (A) in subparagraph (C)--
                          (i) by striking ``(including any additional 
                      amount included in such premium'' and inserting 
                      ``collected''; and
                          (ii) by striking ``(D))'' and inserting 
                      ``(D)''; and
                    (B) in subparagraph (D)(ii), by inserting before the 
                period at the end ``, in accordance with the timing 
                requirements of paragraph (7)(E)''.

SEC. 5. ENHANCED REPORTS TO CONGRESS.

    (a) Study and Report on Insurance for Nuclear, Biological, Chemical, 
and Radiological Terrorist Events.--Section 108 of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the 
end the following:

[[Page 121 STAT. 1842]]

    ``(f) Insurance for Nuclear, Biological, Chemical, and Radiological 
Terrorist Events.--
            ``(1) Study.--The Comptroller General of the United States 
        shall examine--
                    ``(A) the availability and affordability of 
                insurance coverage for losses caused by terrorist 
                attacks involving nuclear, biological, chemical, or 
                radiological materials;
                    ``(B) the outlook for such coverage in the future; 
                and
                    ``(C) the capacity of private insurers and State 
                workers compensation funds to manage risk associated 
                with nuclear, biological, chemical, and radiological 
                terrorist events.
            ``(2) Report.--Not later than 1 year after the date of 
        enactment of the Terrorism Risk Insurance Program 
        Reauthorization Act of 2007, the Comptroller General shall 
        submit to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Financial Services of the 
        House of Representatives a report containing a detailed 
        statement of the findings under paragraph (1), and 
        recommendations for any legislative, regulatory, administrative, 
        or other actions at the Federal, State, or local levels that the 
        Comptroller General considers appropriate to expand the 
        availability and affordability of insurance for nuclear, 
        biological, chemical, or radiological terrorist events.''.

    (b) Study and Report on Availability and Affordability of Terrorism 
Insurance in Specific Markets.--Section 108 of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the 
end the following:
    ``(g) Availability and Affordability of Terrorism Insurance in 
Specific Markets.--
            ``(1) Study.--The Comptroller General of the United States 
        shall conduct a study to determine whether there are specific 
        markets in the United States where there are unique capacity 
        constraints on the amount of terrorism risk insurance available.
            ``(2) Elements of study.--The study required by paragraph 
        (1) shall contain--
                    ``(A) an analysis of both insurance and reinsurance 
                capacity in specific markets, including pricing and 
                coverage limits in existing policies;
                    ``(B) an assessment of the factors contributing to 
                any capacity constraints that are identified; and
                    ``(C) recommendations for addressing those capacity 
                constraints.
            ``(3) Report.--Not later than 180 days after the date of 
        enactment of the Terrorism Risk Insurance Program 
        Reauthorization Act of 2007, the Comptroller General shall 
        submit a report on the study required by paragraph (1) to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives.''.

    (c) Ongoing Reports.--Section 108(e) of the Terrorism Risk Insurance 
Act of 2002 (15 U.S.C. 6701 note) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``ongoing'' before ``analysis''; 
                and
                    (B) by striking ``, including'' and all that follows 
                through the end of the paragraph, and inserting a 
                period; and

[[Page 121 STAT. 1843]]

            (2) in paragraph (2)--
                    (A) by inserting ``and thereafter in 2010 and 
                2013,'' after ``2006,''; and
                    (B) by striking ``subsection (a)'' and inserting 
                ``paragraph (1)''.

    Approved December 26, 2007.

LEGISLATIVE HISTORY--H.R. 2761 (S. 2285):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 110-318 (Comm. on Financial Services).
SENATE REPORTS: No. 110-215 accompanying S. 2285 (Comm. on Banking, 
Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 153 (2007):
            Sept. 19, considered and passed House.
            Nov. 16, considered and passed Senate, amended.
            Dec. 18, House concurred in Senate amendment.

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Terrorism Risk Insurance Program Reauthorization Act of 2007

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