Text: S.467 — 109th Congress (2005-2006)All Information (Except Text)

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Public Law No: 109-144 (12/22/2005)

 
[109th Congress Public Law 144]
[From the U.S. Government Printing 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.

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