S 2285
Calendar No. 461
110th CONGRESS
1st Session
S. 2285
[Report No. 110-215]
To reauthorize the Federal terrorism risk insurance program,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
November 1, 2007
Mr. DODD, from the Committee on Banking, Housing, and Urban Affairs,
reported the following original bill; which was read twice and placed
on the calendar
A BILL
To reauthorize the Federal terrorism risk insurance program,
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; 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), 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';
(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. 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
(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;'.
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:
`(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--
(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
(A) by inserting `and thereafter in 2010 and 2013,' after `2006,';
and
(B) by striking `subsection (a)' and inserting `paragraph (1)'.
Calendar No. 461
110th CONGRESS
1st Session
S. 2285
[Report No. 110-215]
A BILL
To reauthorize the Federal terrorism risk insurance program, and for
other purposes.
November 1, 2007
Read twice and placed on the calendar
END
