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