HR 4721
110th CONGRESS
1st Session
H. R. 4721
To amend the Terrorism Risk Insurance Act of 2002 to temporarily
reduce the insurer deductibles for insurers sustaining insured losses
from large terrorism events.
IN THE HOUSE OF REPRESENTATIVES
December 17, 2007
Mr. ACKERMAN 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 temporarily
reduce the insurer deductibles for insurers sustaining insured losses
from large terrorism events.
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 Improvement Act
of 2007'.
SEC. 2. LARGE EVENT RESET.
The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
(A) in subparagraph (F), by striking `and' at the end;
(B) in subparagraph (G), by striking the period at the end and inserting
`; and'; and
(C) by adding at the end the following new subparagraph:
`(H) Notwithstanding subparagraph (f)(i), if aggregate industry insured
losses resulting from a certified act of terrorism exceed $1,000,000,000,
for any insurer that sustains insured losses resulting from such act
of terrorism, the value of such insurer's direct earned premiums over
the calendar year immediately preceding the program year, multiplied
by a percentage, which--
`(i) for the Program Year consisting of calendar year 2008 shall
be 5 percent; and
`(ii) for each Program Year thereafter, shall be 50 basis points
greater than the percentage applicable to the preceding Program
Year, except that if an act of terrorism occurs during any such
Program Year that results in aggregate industry insured losses exceeding
$1,000,000,000, the percentage for the succeeding Program Year shall
be 5 percent and the increase under this clause shall apply to Program
Years thereafter;
except that for purposes of determining under this subparagraph whether
aggregate industry insured losses exceed $1,000,000,000, the Secretary
may combine insured losses resulting from two or more certified acts
of terrorism occurring during such Program Year in the same geographic
area (with such area determined by the Secretary), in which case such
insurer shall be permitted to combine insured losses resulting from
such acts of terrorism for purposes of satisfying its insurer deductible
under this subparagraph; and except that the insurer deductible under
this subparagraph shall apply only with respect to compensation of
insured losses resulting from such certified act, or combined certified
acts, and that for purposes of compensation of any other insured losses
occurring in the same Program Year, the insurer deductible determined
under subparagraph (F) shall apply.'; and
(2) in section 103(e)(1)(b)--
(A) in clause (ii), by striking the period at the end and inserting
a semicolon; and
(B) by adding after and below clause (ii) the following:
`except that if a certified act of terrorism occurs for which resulting
aggregate industry insured losses exceed $1,000,000,000, the applicable
amount for any subsequent certified act of terrorism shall be the amount
specified in section 102(1)(B)(ii).'.
END
