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Congress & the Middle East:
Terrorism Risk Insurance and Revision Act of 2007

(September 19, 2007)


Congress & Middle East: Table of Contents | Key Senate Votes | Key House Votes


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The U.S House of Representatives passed the Terrorism Risk Insurance and Revision Act of 2007 by a vote of 312-110 with 10 members not voting. The bill prevents insurance companies from denying life insurance coverage to those who travel.
The bill was sponsored by Reps. Debbie Wasserman-Schultz (D-FL), Barney Frank (D-MA) and Spencer Bachus (R-AL).

H.R. 2761

To extend the Terrorism Insurance Program of the Department of the Treasury, 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.

    This Act may be cited as the `Terrorism Risk Insurance Revision and Extension Act of 2007'.

SEC. 2. TERMINATION OF PROGRAM.

    Subsection (a) of section 108 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking `December 31, 2007' and inserting `December 31, 2022'.

SEC. 3. REVISION OF TERRORISM INSURANCE PROGRAM.

    (a) In General- The Terrorism Risk Insurance Act of 2002 is amended--
      (1) by striking sections 101, 102, and 103 and inserting the following new sections:

`SEC. 101. CONGRESSIONAL FINDINGS AND PURPOSE.

    `(a) Findings- The Congress finds that--
      `(1) the ability of businesses and individuals to obtain property and casualty insurance at reasonable and predictable prices, in order to spread the risk of both routine and catastrophic loss, is critical to economic growth, urban development, and the construction and maintenance of public and private housing, as well as to the promotion of United States exports and foreign trade in an increasingly interconnected world;
      `(2) property and casualty insurance firms are important financial institutions, the products of which allow mutualization of risk and the efficient use of financial resources and enhance the ability of the economy to maintain stability, while responding to a variety of economic, political, environmental, and other risks with a minimum of disruption;
      `(3) the ability of the insurance industry to cover the unprecedented financial risks presented by potential acts of terrorism in the United States can be a major factor in the recovery from terrorist attacks, while maintaining the stability of the economy;
      `(4) widespread financial market uncertainties have arisen following the terrorist attacks of September 11, 2001, including the absence of information from which financial institutions can make statistically valid estimates of the probability and cost of future terrorist events, and therefore the size, funding, and allocation of the risk of loss caused by such acts of terrorism ;
      `(5) a decision by property and casualty insurers to deal with such uncertainties, either by terminating property and casualty coverage for losses arising from terrorist events, or by radically escalating premium coverage to compensate for risks of loss that are not readily predictable, could seriously hamper ongoing and planned construction, property acquisition, and other business projects, generate a dramatic increase in rents, and otherwise suppress economic activity;
      `(6) the United States Government should coordinate with insurers to provide financial compensation to insured parties for losses from acts of terrorism , contributing to the stabilization of the United States economy in a time of national crisis, and periodically assess the ability of the financial services industry to develop the systems, mechanisms, products, and programs necessary to create a viable financial services market for private terrorism risk insurance that will lessen the financial participation of the United States Government;
      `(7) in addition to a terrorist attack on the United States using conventional means or weapons, there is and continues to be a potential threat of a terrorist attack involving the use of unconventional means or weapons, such as nuclear, biological, chemical, or radiological agents;
      `(8) as nuclear, biological, chemical, or radiological acts of terrorism (known as NBCR terrorism ) present a threat of loss of life, injury, disease, and property damage potentially unparalleled in scope and complexity by any prior event, natural or man-made, the Federal Government's responsibility in providing for and preserving national economic security calls for a strong Federal role in ensuring financial compensation and economic recovery in the event of such an attack;
      `(9) a report issued by the Government Accountability Office in September 2006 concluded that `any purely market-driven expansion of coverage' for NBCR terrorism risk is `highly unlikely in the foreseeable future', and the September 2006 report from the President's Working Group on Financial Markets concluded that reinsurance for NBCR terrorist events is virtually unavailable and that `[g]iven the general reluctance of insurance companies to provide coverage for these types of risks, there may be little potential for future market development';
      `(10) group life insurance companies are important financial institutions whose products make life insurance coverage affordable for millions of Americans and often serve as their only life insurance benefit;
      `(11) the group life insurance industry, in the event of a severe act of terrorism , is vulnerable to insolvency because high concentrations of covered employees work in the same locations, because primary group life insurers do not exclude conventional and NBCR terrorism risks while most catastrophic reinsurance does exclude such terrorism risks, and because a large-scale loss of life would fall outside of actuarial expectations of death; and
      `(12) the United States Government should provide temporary financial compensation to insured parties, contributing to the stabilization of the United States economy in a time of national crisis, while the financial services industry develops the systems, mechanisms, products, and programs necessary to create a viable financial services market for private terrorism risk insurance .
    `(b) Purpose- The purpose of this title is to establish a temporary Federal program that provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism , in order to--
      `(1) protect consumers by addressing market disruptions and ensure the continued widespread availability and affordability of property and casualty insurance and group life insurance for all types of terrorism risk, including conventional terrorism risk and nuclear, biological, chemical, and radiological terrorism risk;
      `(2) allow for a transitional period for the private markets to stabilize, resume pricing of such insurance , and build capacity to absorb any future losses, while preserving State insurance regulation and consumer protections (unless otherwise preempted by this Act); and
      `(3) provide finite liability limits for terrorism insurance losses for insurers and the United States Government.

`SEC. 102. DEFINITIONS.

    `In this title, the following definitions shall apply:
      `(1) ACT OF TERRORISM -
        `(A) CERTIFICATION- The term `act of terrorism' means any act that is certified by the Secretary, in concurrence with the Secretary of State, the Secretary of Homeland Security, and the Attorney General of the United States--
          `(i) to be an act of terrorism ;
          `(ii) to be a violent act or an act that is dangerous to--
            `(I) human life;
            `(II) property; or
            `(III) infrastructure;
          `(iii) to have resulted in damage within the United States, or outside of the United States in the case of--
            `(I) an air carrier or vessel described in paragraph (9)(B); or
            `(II) the premises of a United States mission; and
          `(iv) to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.
        `(B) LIMITATION- No act shall be certified by the Secretary as an act of terrorism if--
          `(i) the act is committed as part of the course of a war declared by the Congress, except that this clause shall not apply with respect to any coverage for workers' compensation; or
          `(ii) property and casualty insurance and group life insurance losses resulting from the act, in the aggregate, do not exceed $5,000,000.
        `(C) CERTIFICATION OF ACT OF NBCR TERRORISM - Where a certified act of terrorism is carried out by means of a nuclear, biological, chemical, or radiological weapon or similar instrumentality, the Secretary shall further certify such act of terrorism as an act of NBCR terrorism . If a certified act of terrorism involves any other weapon or instrumentality, the Secretary, in concurrence with the Secretary of State, the Secretary of Homeland Security, and the Attorney General of the United States, shall determine whether the act of terrorism meets the definition of NBCR terrorism in this section. If such determination is that the act does meet such definition, the Secretary shall further certify that such act as an act of NBCR terrorism . Nothing in this subparagraph shall prohibit the Secretary from determining that a single act of terrorism resulted in both NBCR and non-NBCR insured losses.
        `(D) DETERMINATIONS FINAL- Any certification of, or determination not to certify, an act as an act of terrorism or as an act of NBCR terrorism under this paragraph shall be final, and shall not be subject to judicial review.
        `(E) NONDELEGATION- The Secretary may not delegate or designate to any other officer, employee, or person, any determination under this paragraph of whether, during the effective period of the Program, an act of terrorism , including an act of NBCR terrorism , has occurred.
        `(F) COMPENSATION SUBJECT TO FURTHER CONGRESSIONAL ACTION- Notwithstanding any certification of an act under this paragraph as an act of terrorism or an act of NBCR terrorism , Federal compensation under the Program shall be subject to the provisions of section 103(h).
        `(G) SUBMISSION OF CERTIFICATION UNDER THIS PARAGRAPH- Upon any certification under subparagraph (A), the Secretary shall submit such certification to the Congress.
      `(2) AFFILIATE- The term `affiliate' means, with respect to an insurer, any entity that controls, is controlled by, or is under common control with the insurer.
      `(3) AMOUNT AT RISK- The term `amount at risk' means face amount less statutory policy reserves for group life insurance issued by any insurer for insurance against losses occurring at the locations described in subparagraph (A) of paragraph (9).
      `(4) CONTROL- An entity has `control' over another entity, if--
        `(A) the entity directly or indirectly or acting through 1 or more other persons owns, controls, or has power to vote 25 percent or more of any class of voting securities of the other entity;
        `(B) the entity controls in any manner the election of a majority of the directors or trustees of the other entity; or
        `(C) the Secretary determines, after notice and opportunity for hearing, that the entity directly or indirectly exercises a controlling influence over the management or policies of the other entity; except that for purposes of any proceeding under this subparagraph, there shall be a presumption that any entity which directly or indirectly owns, controls, or has power to vote less than 5 percent of any class of voting securities of another entity does not have control over that entity.
      `(5) COVERED LINES- The term `covered lines' means property and casualty insurance and group life insurance , as defined in this section.
      `(6) DIRECT EARNED PREMIUM- The term `direct earned premium' means a direct earned premium for property and casualty insurance issued by any insurer for insurance against losses occurring at the locations described in subparagraph (A) of paragraph (9).
      `(7) EXCESS INSURED LOSS- The term `excess insured loss' means, with respect to a Program Year, any portion of the amount of insured losses during such Program Year that exceeds the cap on annual liability under section 103(e)(2)(A).
      `(8) GROUP LIFE INSURANCE - The term `group life insurance' means an insurance contract that provides life insurance coverage, including term life insurance coverage, universal life insurance coverage, variable universal life insurance coverage, and accidental death coverage, or a combination thereof, for a number of individuals under a single contract, on the basis of a group selection of risks, but does not include `Corporate Owned Life Insurance' or `Business Owned Life Insurance ,' each as defined under the Internal Revenue Code of 1986, or any similar product, or group life reinsurance or retrocessional reinsurance.
      `(9) INSURED LOSS-
        `(A) IN GENERAL- Except as provided in subparagraph (B), the term `insured loss' means any loss resulting from an act of terrorism (including an act of war, in the case of workers' compensation) that is covered by primary or excess property and casualty insurance , or group life insurance to the extent of the amount at risk, issued by an insurer, if such loss--
          `(i) occurs within the United States; or
          `(ii) occurs to an air carrier (as defined in section 40102 of title 49, United States Code), to a United States flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), regardless of where the loss occurs, or at the premises of any United States mission.
        `(B) LIMITATION FOR GROUP LIFE INSURANCE - Such term shall not include any losses of an insurer resulting from coverage of any single certificate holder under any group life insurance coverages of the insurer to the extent such losses are not compensated under the Program by reason of section 103(e)(1)(D).
      `(10) INSURER- The term `insurer' means any entity, including any affiliate thereof--
        `(A) that is--
          `(i) licensed or admitted to engage in the business of providing primary or excess insurance , or group life insurance , in any State;
          `(ii) not licensed or admitted as described in clause (i), if it is an eligible surplus line carrier listed on the Quarterly Listing of Alien Insurers of the NAIC, or any successor thereto;
          `(iii) approved for the purpose of offering property and casualty insurance by a Federal agency in connection with maritime, energy, or aviation activity;
          `(iv) a State residual market insurance entity or State workers' compensation fund; or
          `(v) any other entity described in section 103(f), to the extent provided in the rules of the Secretary issued under section 103(f);
        `(B) that receives direct earned premiums for any type of commercial property and casualty insurance coverage, or, in the case of group life insurance , that receives direct premiums, other than in the case of entities described in sections 103(d) and 103(f); and
        `(C) that meets any other criteria that the Secretary may reasonably prescribe.
      `(11) INSURER DEDUCTIBLE- The term `insurer deductible' means--
        `(A) for the Transition Period, the value of an insurer's direct earned premiums over the calendar year immediately preceding the date of enactment of this Act, multiplied by 1 percent;
        `(B) for Program Year 1, the value of an insurer's direct earned premiums over the calendar year immediately preceding Program Year 1, multiplied by 7 percent;
        `(C) for Program Year 2, the value of an insurer's direct earned premiums over the calendar year immediately preceding Program Year 2, multiplied by 10 percent;
        `(D) for Program Year 3, the value of an insurer's direct earned premiums over the calendar year immediately preceding Program Year 3, multiplied by 15 percent;
        `(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;
        `(G) for each additional Program Year--
          `(i) with respect to property and casualty insurance , the value of an insurer's direct earned premiums over the calendar year immediately preceding such Program Year, multiplied by 20 percent; and
          `(ii) with respect to group life insurance , the value of an insurer's amount at risk over the calendar year immediately preceding such Program Year, multiplied by 0.0351 percent;
        `(H) notwithstanding subparagraphs (A) through (G), for the Transition Period or any Program Year, if an insurer has not had a full year of operations during the calendar year immediately preceding such Period or Program Year, such portion of the direct earned premiums with respect to property and casualty insurance , and such portion of the amounts at risk with respect to group life insurance , of the insurer as the Secretary determines appropriate, subject to appropriate methodologies established by the Secretary for measuring such direct earned premiums and amounts at risk;
        `(I) notwithstanding subparagraphs (A) through (H) and (J), in the case of any act of NBCR terrorism , for any additional Program Year--
          `(i) with respect to property and casualty insurance , the value of an insurer's direct earned premiums over the calendar year immediately preceding such Program Year, multiplied by a percentage, which--
            `(I) for the second additional Program Year, shall be 3.5 percent; and
            `(II) for each succeeding Program Year thereafter, shall be 50 basis points greater than the percentage applicable to the preceding additional Program Year; and
          `(ii) with respect to group life insurance , the value of an insurer's amount at risk over the calendar year immediately preceding such Program Year, multiplied by a percentage, which--
            `(I) for the first additional Program Year, shall be 0.00614 percent; and
            `(II) for each succeeding Program Year thereafter, shall be 0.088 basis point greater than the percentage applicable to the preceding additional Program Year;
        `(J) notwithstanding subparagraph (G)(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 first additional Program Year shall be 5 percent; and
          `(ii) for each additional Program Year thereafter, shall be 50 basis points greater than the percentage applicable to the preceding additional Program Year, except that if an act of terrorism occurs during any additional Program Year that results in aggregate industry insured losses exceeding $1,000,000,000, the percentage for the succeeding additional Program Year shall be 5 percent and the increase under this clause shall apply to additional 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 (G)(i) or (I) shall apply; and
        `(K) for the fifth additional Program Year and any Additional Program year thereafter, notwithstanding subparagraph (I)(i), if aggregate industry insured losses resulting from a certified act of NBCR terrorism exceed $1,000,000,000, for any insurer that sustains insured losses resulting from such act of NBCR 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 fifth additional Program Year shall be 5 percent; and
          `(ii) for each additional Program Year thereafter, shall be 50 basis points greater than the percentage applicable to the preceding additional Program Year, except that if an act of NBCR terrorism occurs during the fifth additional Program Year or any additional Program Year thereafter that results in aggregate industry insured losses exceeding $1,000,000,000, the percentage for the succeeding additional Program Year shall be 5 percent and the increase under this clause shall apply to additional 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 NBCR 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 NBCR 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 (I)(i) shall apply.
      `(12) NAIC- The term `NAIC' means the National Association of Insurance Commissioners.
      `(13) NBCR TERRORISM - The term `NBCR terrorism' means an act of terrorism that involves or triggers nuclear, biological, chemical, or radiological reactions, releases, or contaminations, but only if any aggregate industry insured losses that result from such reactions, releases, or contaminations exceed the amount set forth in paragraph (1)(B)(ii).
      `(14) PERSON- The term `person' means any individual, business or nonprofit entity (including those organized in the form of a partnership, limited liability company, corporation, or association), trust or estate, or a State or political subdivision of a State or other governmental unit.
      `(15) PROGRAM- The term `Program' means the Terrorism Insurance Program established by this title.
      `(16) PROGRAM YEARS-
        `(A) TRANSITION PERIOD- The term `Transition Period' means the period beginning on the date of enactment of this Act and ending on December 31, 2002.
        `(B) PROGRAM YEAR 1- The term `Program Year 1' means the period beginning on January 1, 2003 and ending on December 31, 2003.
        `(C) PROGRAM YEAR 2- The term `Program Year 2' means the period beginning on January 1, 2004 and ending on December 31, 2004.
        `(D) PROGRAM YEAR 3- The term `Program Year 3' means the period beginning on January 1, 2005 and ending on December 31, 2005.
        `(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.
        `(G) ADDITIONAL PROGRAM YEAR- The term `additional Program Year' means any additional one-year period after Program Year 5 during which the Program is in effect, which period shall begin on January 1 and end on December 31 of the same calendar year.
      `(17) PROPERTY AND CASUALTY INSURANCE - The term `property and casualty insurance' --
        `(A) means commercial lines of property and casualty insurance , including excess insurance , workers' compensation insurance , and directors and officers liability insurance ; and
        `(B) does not include--
          `(i) Federal crop insurance issued or reinsured under the Federal Crop Insurance Act (7 U.S.C.

`SEC. 103. TERRORISM INSURANCE PROGRAM.

    `(a) Establishment of Program-
      `(1) IN GENERAL- There is established in the Department of the Treasury the Terrorism Insurance Program.
      `(2) AUTHORITY OF THE SECRETARY- Notwithstanding any other provision of State or Federal law, the Secretary shall administer the Program, and , subject only to subsection (h)(1), shall pay the Federal share of compensation for insured losses in accordance with subsection (e).
      `(3) MANDATORY PARTICIPATION- Each entity that meets the definition of an insurer under this title shall participate in the Program.
      `(4) NBCR EXEMPTION FOR CERTAIN INSURERS- Notwithstanding the requirements of paragraph (3):
        `(A) ELIGIBILITY- Upon request, the Secretary may provide an exemption from the requirements of subparagraph (B) of subsection (c)(1) in the Program to an entity that otherwise meets the definition of an insurer under this title if--
          `(i) such insurer's direct earned premium is less than $50,000,000 in the calendar year immediately preceding the current additional Program Year; and
          `(ii) the Secretary makes the determination set forth in subparagraph (D).
        `(B) INSURER GROUP- For purposes of subparagraph (A)(i), the direct earned premium of any insurer shall include the direct earned premiums of every affiliate of that insurer.
        `(C) INFORMATION AND CONSULTATION- Any insurer requesting an exemption pursuant to this paragraph shall provide any information the Secretary may require to establish its eligibility for the exemption. In developing standards for evaluating eligibility for the exemption under this paragraph, the Secretary shall consult with the NAIC.
        `(D) DETERMINATION- In making any determination regarding eligibility for exemption under this paragraph, the Secretary shall consult with the insurance commissioner of the State or other appropriate State regulatory authority where the insurer is domiciled and determine whether the insurer has demonstrated that it would become insolvent if it were required, in the event of an act of NBCR terrorism , to satisfy--
          `(i) its deductible and maximum applicable share above the deductible pursuant to sections 102(11)(I) and 103(e)(1)(B), respectively, for such act of NBCR terrorism resulting in aggregate industry insured losses above the trigger established in section 103(e)(1)(C); or
          `(ii) its maximum payment obligations for insured losses for such act of NBCR terrorism resulting in aggregate industry insured losses below the trigger established in section 103(e)(1)(C).
        `(E) Workers' COMPENSATION AND OTHER COMPULSORY INSURANCE LAW- In granting an exemption under this paragraph, the Secretary shall not approve any request for exemption with regard to State workers' compensation insurance or other compulsory insurance law requiring coverage of the risks described in subparagraph (B) of subsection (c)(1).
        `(F) EXEMPTION PERIOD-
          `(i) IN GENERAL- Any exemption granted to an insurer by the Secretary under this paragraph shall have a duration of not longer than 2 years.
          `(ii) EXTENSION - Notwithstanding clause (i), the Secretary may, upon application by an insurer granted an exemption under this paragraph, extend such exemption for additional periods of not longer than 2 years.
    `(b) Conditions for Federal Payments- No payment may be made by the Secretary under this section with respect to an insured loss that is covered by an insurer, unless--
      `(1) there is enacted a joint resolution for payment of Federal compensation with respect to the act of terrorism that resulted in the insured loss;
      `(2) the person that suffers the insured loss, or a person acting on behalf of that person, files a claim with the insurer;
      `(3) the insurer provides clear and conspicuous disclosure to the policyholder of the premium charged for insured losses covered by the Program (including the additional premium, if any, charged for the coverage for insured losses resulting from acts of NBCR terrorism as made available pursuant to subsection (c)(1)(B)) and the Federal share of compensation for insured losses under the Program--
        `(A) in the case of any policy that is issued before the date of enactment of this Act, not later than 90 days after that date of enactment;
        `(B) in the case of any policy that is issued within 90 days of the date of enactment of this Act, at the time of offer, purchase, and renewal of the policy; and
        `(C) in the case of any policy that is issued more than 90 days after the date of enactment of this Act, on a separate line item in the policy, at the time of offer, purchase, and renewal of the policy;
      `(4) the insurer processes the claim for the insured loss in accordance with appropriate business practices, and any reasonable procedures that the Secretary may prescribe; and
      `(5) the insurer submits to the Secretary, in accordance with such reasonable procedures as the Secretary may establish--
        `(A) a claim for payment of the Federal share of compensation for insured losses under the Program;
        `(B) written certification--
          `(i) of the underlying claim; and
          `(ii) of all payments made for insured losses; and
        `(C) certification of its compliance with the provisions of this subsection.
    `(c) Mandatory Availability-
      `(1) AVAILABILITY OF COVERAGE FOR INSURED LOSSES- Subject to paragraph (3), during each Program Year, each entity that meets the definition of an insurer under section 102 shall make available--
        `(A) in all of its insurance policies for covered lines, coverage for insured losses that does not differ materially from the terms, amounts, and other coverage limitations applicable to losses arising from events other than acts of terrorism ; and
        `(B) in insurance policies for covered lines for which the coverage described in subparagraph (A) is provided, exceptions to the pollution and nuclear hazard exclusions of such policies that render such exclusions inapplicable only as to insured losses arising from acts of NBCR terrorism .
      `(2) ALLOWABLE EXCLUSIONS IN OTHER COVERAGE- Subject to paragraph (3) and notwithstanding any other provision of Federal or State law, including any State workers' compensation and other compulsory insurance law, if a person elects not to purchase an insurance policy with the coverage described in paragraph (1)--
        `(A) an insurer may exclude coverage for all losses from acts of terrorism including acts of NBCR terrorism , except for State workers' compensation and other compulsory insurance law requiring coverage of the risks described in subsection (c)(1) (unless permitted by State law); or
        `(B) an insurer may offer other options for coverage that differ materially from the terms, amounts, and other coverage limitations applicable to losses arising from events other than acts of terrorism ;
      except that nothing in this paragraph shall affect paragraph (4).
      `(3) APPLICABILITY FOR NBCR TERRORISM - Notwithstanding any other provision of this Act, paragraphs (1)(B) and (2) shall apply, beginning upon January 1, 2009, with respect to coverage for acts of NBCR terrorism , that is purchased or renewed on or after such date.
      `(4) AVAILABILITY OF LIFE INSURANCE WITHOUT REGARD TO LAWFUL FOREIGN TRAVEL- During each Program Year, each entity that meets the definition of an insurer under section 102 shall make available, in all of its life insurance policies issued after the date of the enactment of the Terrorism Risk Insurance Revision and Extension Act of 2007 under which the insured person is a citizen of the United States or an alien lawfully admitted for permanent residence in the United States, coverage that neither considers past, nor precludes future, lawful foreign travel by the person insured, and shall not decline such coverage based on past or future, lawful foreign travel by the person insured or charge a premium for such coverage that is excessive and not based on a good faith actuarial analysis, except that an insurer may decline or, upon inception or renewal of a policy, limit the amount of coverage provided under any life insurance policy based on plans to engage in future lawful foreign travel to occur within 12 months of such inception or renewal of the policy but only if, at time of application--
        `(A) such declination is based on, or such limitation applies only with respect to, travel to a foreign destination--
          `(i) for which the Director of the Centers for Disease Control and Prevention of the Department of Health and Human Services has issued a highest level alert or warning, including a recommendation against non-essential travel, due to a serious health-related condition;
          `(ii) in which there is an ongoing military conflict involving the armed forces of a sovereign nation other than the nation to which the insured person is traveling; or
          `(iii)(I) that the insurer has specifically designated in the terms of the life insurance policy at the inception of the policy or at renewal, as applicable; and
          `(II) with respect to which the insurer has made a good-faith determination that--
            `(aa) a serious fraudulent situation exists which is ongoing; and
            `(bb) the credibility of information by which the insurer can verify the death of the insured person is substantially compromised; and
        `(B) in the case of any limitation of coverage, such limitation is specifically stated in the terms of the life insurance policy at the inception of the policy or at renewal, as applicable.
    `(d) State Residual Market Insurance Entities-
      `(1) IN GENERAL- The Secretary shall issue regulations, as soon as practicable after the date of enactment of this Act, that apply the provisions of this title to State residual market insurance entities and State workers' compensation funds.
      `(2) TREATMENT OF CERTAIN ENTITIES- For purposes of the regulations issued pursuant to paragraph (1)--
        `(A) a State residual market insurance entity that does not share its profits and losses with private sector insurers shall be treated as a separate insurer; and
        `(B) a State residual market insurance entity that shares its profits and losses with private sector insurers shall not be treated as a separate insurer, and shall report to each private sector insurance participant its share of the insured losses of the entity, which shall be included in each private sector insurer's insured losses.
      `(3) TREATMENT OF PARTICIPATION IN CERTAIN ENTITIES- Any insurer that participates in sharing profits and losses of a State residual market insurance entity shall include in its calculations of premiums any premiums distributed to the insurer by the State residual market insurance entity.
    `(e) Insured Loss Shared Compensation-
      `(1) FEDERAL SHARE-
        `(A) CONVENTIONAL TERRORISM - Except as provided in subparagraph (B), the Federal share of compensation under the Program to be paid by the Secretary, subject to subsection (h)(1), for insured losses of an insurer during any additional Program Year shall be equal to the sum of--
          `(i) 85 percent of that portion of the amount of such insured losses that--
            `(I) exceed the applicable insurer deductible required to be paid during such Program Year; and
            `(II) based upon pro rata determinations pursuant to paragraph (2)(B), does not result in aggregate industry insured losses during such Program Year exceeding $100,000,000,000; and
          `(ii) 100 percent of the insured losses of the insurer that, based upon pro rata determinations pursuant to paragraph (2)(B), result in aggregate industry insured losses during such Program Year exceeding $100,000,000,000, up to the limit under paragraph (2)(A).
        `(B) NBCR TERRORISM -
          `(i) AMOUNT OF COMPENSATION- The Federal share of compensation under the Program to be paid by the Secretary, subject to subsection (h)(1), for insured losses of an insurer resulting from NBCR terrorism during any additional Program Year shall be equal to the sum of--
            `(I) the amount of qualified NBCR losses (as such term is defined in clause (ii)) of the insurer, multiplied by a percentage based on the aggregate industry qualified NBCR losses for the Program Year, which percentage shall be--

`(aa) 85 percent of such aggregate industry qualified NBCR losses of less than $10,000,000,000;

`(bb) 87.5 percent of such aggregate industry qualified NBCR losses between $10,000,000,000 and $20,000,000,000;

`(cc) 90 percent of such aggregate industry qualified NBCR losses between $20,000,000,000 and $40,000,000,000;

`(dd) 92.5 percent of such aggregate industry qualified NBCR losses of between $40,000,000,000 and $60,000,000,000; and

`(ee) 95 percent of such aggregate industry qualified NBCR losses of more than $60,000,000,000;

            and shall be prorated per insurer based on each insurer's percentage of the aggregate industry qualified NBCR losses for such additional Program Year; and
            `(II) 100 percent of the insured losses of the insurer resulting from NBCR terrorism that, based upon pro rata determinations pursuant to paragraph (2)(B), result in aggregate industry insured losses during such Program Year exceeding $100,000,000,000, up to the limit under paragraph (2)(A).
          `(ii) QUALIFIED NBCR LOSSES- For purposes of this subparagraph, the term `qualified NBCR losses' means, with respect to insured losses of an insurer resulting from NBCR terrorism during an additional Program Year, that portion of the amount of such insured losses that result from any such reactions, releases, or contaminations and that--
            `(I) exceed the applicable insurer deductible required to be paid during such Program Year; and
            `(II) based upon pro rata determinations pursuant to paragraph (2)(B), does not result in aggregate industry insured losses during such Program Year exceeding $100,000,000,000.
        `(C) PROGRAM TRIGGER- In the case of a certified act of terrorism occurring after March 31, 2006, no compensation shall be paid, pursuant to subsection (h)(1), by the Secretary under subsection (a), unless the aggregate industry insured losses resulting from such certified act of terrorism exceed $50,000,000, 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).
        `(D) LIMITATION ON COMPENSATION FOR GROUP LIFE INSURANCE - Notwithstanding any other provision of this Act, the Federal share of compensation under the Program paid, pursuant to subsection (h)(1), by the Secretary for insured losses of an insurer resulting from coverage of any single certificate holder under any group life insurance coverages of the insurer may not during any additional Program Year exceed $1,000,000.
        `(E) PROHIBITION ON DUPLICATIVE COMPENSATION- The Federal share of compensation for insured losses under the Program shall be reduced by the amount of compensation provided by the Federal Government to any person under any other Federal program for those insured losses.
      `(2) CAP ON ANNUAL LIABILITY-
        `(A) IN GENERAL- Notwithstanding paragraph (1) or any other provision of Federal or State law, including any State workers' compensation or other compulsory insurance law, if the aggregate amount of the Federal share of compensation to be paid to all insurers pursuant to paragraph (1) exceeds $100,000,000,000, during any additional Program Year (until such time as the Congress may act otherwise with respect to such losses)--
          `(i) the Secretary shall not make any payment under this title for any portion of the amount of the aggregate insured losses during such Program Year for which the Federal share exceeds $100,000,000,000; and
          `(ii) no insurer that has met its insurer deductible shall be liable for the payment of any portion of the aggregate insured losses during such Program Year that exceeds $100,000,000,000.
        `(B) INSURER SHARE- For purposes of subparagraph (A), the Secretary shall determine the pro rata share of insured losses to be paid by each insurer that incurs insured losses under the Program.
        `(C) CLAIMS ALLOCATIONS- The Secretary shall, by regulation, provide for insurers to allocate claims payments for insured losses under applicable insurance policies in any case described in subparagraph (A). Such regulations shall include provisions for payment, for the purpose of addressing emergency needs of applicable individuals affected by an act of terrorism , of a portion of claims for insured losses promptly upon filing of such claims.
      `(3) LIMITATION ON INSURER FINANCIAL RESPONSIBILITY-
        `(A) LIMITATION- Notwithstanding any other provision of Federal or State law, including any State workers' compensation or other compulsory insurance law, an insurer's financial responsibility for insured losses from acts of terrorism shall be limited as follows:
          `(i) FEDERAL COMPENSATION NOT PROVIDED- In any case of an act of terrorism with respect to which there has not been enacted a joint resolution for payment of Federal compensation described in subsection (h)(2), an insurer's financial responsibility for insured losses from such act of terrorism shall be limited to its applicable insurer deductible.
          `(ii) FEDERAL COMPENSATION PROVIDED- In any case of an act of terrorism with respect to which there has been enacted a joint resolution for payment of Federal compensation described in subsection (h)(2), an insurer's financial responsibility for insured losses from such act of terrorism shall be limited to--
            `(I) its applicable insurer deductible; and
            `(II) its applicable share of insured losses that exceed its applicable insurer deductible, subject to the requirements of paragraph (2).
        `(B) FEDERAL REIMBURSEMENT- In the case of any act of terrorism with respect to which there has been enacted a joint resolution for payment of Federal compensation described in subsection (h)(2) and notwithstanding any other provision of Federal or State law, the Secretary shall--
          `(i) reimburse insurers for any payment of excess insured losses made prior to publication of any notification pursuant to paragraph (4)(A);
          `(ii) reimburse insurers for any payment of excess insured losses occurring on or after the date of any notification pursuant to paragraph (4)(A), but only to the extent that--
            `(I) such payment is ordered by a court pursuant to subparagraph (C) of this paragraph or is directed by State law, notwithstanding this paragraph, or by Federal law;
            `(II) such payment is limited to compensating insurers for their payment of excess insured losses and does not include punitive damages, or litigation or other costs; and
            `(III) the insurer has made a good-faith effort to defend against any claims for such payment; and
          `(iii) have the right to intervene in any legal proceedings relating to such claims specified in clause (ii)(III).
        `(C) FEDERAL COURT JURISDICTION-
          `(i) CONDITIONS- All claims relating to or arising out of an insurer's financial responsibility for insured losses from acts of terrorism under this paragraph shall be within the original and exclusive jurisdiction of the district courts of the United States, in accordance with the procedures established in subparagraph (D), if the Secretary certifies that the following conditions have been met, or that there is a reasonable likelihood that the following conditions may be met:
            `(I) The aggregate amount of the Federal share of compensation to be paid to all insurers pursuant to paragraph (1) exceeds $100,000,000,000, pursuant to paragraph (2); and
            `(II) the insurer has paid its applicable insurer deductible and its pro rata share of insured losses determined pursuant to paragraph (2)(B).
          `(ii) REMOVAL OF STATE COURT ACTIONS- If the Secretary certifies that conditions set forth in subclauses (I) and (II) of clause (i) have been met, all pending State court actions that relate to or arise out of an insurer's financial responsibility for insured losses from acts of terrorism under this paragraph shall be removed to a district court of the United States in accordance with subparagraph (D).
        `(D) VENUE- For each certification made by the Secretary pursuant to subparagraph (C)(i), not later than 90 days after the Secretary's determination the Judicial Panel on Multidistrict Litigation shall designate one district court or, if necessary, multiple district courts of the United States that shall have original and exclusive jurisdiction over all actions for any claim relating to or arising out of an insurer's financial responsibility for insured losses from acts of terrorism under this paragraph.
        `(E) FEDERAL COURT JURISDICTION AND VENUE IN CASES OF NO FEDERAL COMPENSATION- In the case of any act of terrorism with respect to which there has not been enacted a joint resolution for payment of Federal compensation described in subsection (h)(2)--
          `(i) all claims relating to or arising out of an insurer's financial responsibility for insured losses from such act of terrorism shall be within the original and exclusive jurisdiction of the district courts of the United States, in accordance with the procedures established in clause (iii);
          `(ii) all pending State court actions that relate to or arise out of an insurer's financial responsibility for insured losses from such act of terrorism shall be removed to a district court of the United States in accordance with clause (iii); and
          `(iii) not later than 90 days after the Secretary's certification of such act of terrorism , the Judicial Panel on Multidistrict Litigation shall designate one district court or, if necessary, multiple district courts of the United States that shall have original and exclusive jurisdiction over all actions for any claim relating to or arising out of an insurer's financial responsibility for insured losses from such act of terrorism .
      `(4) NOTICES REGARDING LOSSES AND ANNUAL LIABILITY CAP-
        `(A) APPROACHING CAP- If the Secretary determines estimated or actual aggregate Federal compensation to be paid pursuant to paragraph (1) equals or exceeds $80,000,000,000 during any Program Year, the Secretary shall promptly provide notification in accordance with subparagraph (D)--
          `(i) of such estimated or actual aggregate Federal compensation to be paid;
          `(ii) of the likelihood that such aggregate Federal compensation to be paid for such Program Year will equal or exceed $100,000,000,000; and
          `(iii) that, pursuant to paragraph (2)(A)(ii), insurers are not required to make payments of excess insured losses.
        `(B) EVENT LIKELY TO CAUSE LOSSES TO EXCEED CAP- If any act of terrorism occurs that the Secretary determines is likely to cause estimated or actual aggregate Federal compensation to be paid pursuant to paragraph (1) to exceed $100,000,000,000 during any Program Year, the Secretary shall, not later than 10 days after such act, provide notification in accordance with subparagraph (D)--
          `(i) of such estimated or actual aggregate Federal compensation to be paid; and
          `(ii) that, pursuant to paragraph (2)(A)(ii), insurers are not required to make payments for excess insured losses.
        `(C) EXCEEDING CAP- If the Secretary determines estimated or actual aggregate Federal compensation to be paid pursuant to paragraph (1) equals or exceeds $100,000,000,000 during any Program Year--
          `(i) the Secretary shall promptly provide notification in accordance with subparagraph (D)--
            `(I) of such estimated or actual aggregate Federal compensation to be paid; and
            `(II) that, pursuant to paragraph (2)(A)(ii), insurers are not required to make payments for excess insured losses unless the Congress provides for payments for excess insured losses pursuant to clause (ii) of this subparagraph; and
          `(ii) the Congress shall determine the procedures for and the source of any payments for such excess insured losses.
        `(D) PARTIES NOTIFIED- Notification is provided in accordance with this subparagraph only if notification is provided--
          `(i) to the Congress, in writing; and
          `(ii) to insurers, by causing such notice to be published in the Federal Register.
        `(E) DETERMINATIONS- The Secretary shall make determinations regarding estimated and actual aggregate Federal compensation to be paid promptly after any act of terrorism as may be necessary to comply with this paragraph.
        `(F) MANDATORY DISCLOSURE FOR INSURANCE CONTRACTS- All policies for property and casualty insurance and group life insurance shall be deemed to contain a provision to the effect that, in the case of any act of terrorism with respect to which there has been enacted a joint resolution for payment of Federal compensation described in subsection (h)(2), no insurer that has met its applicable insurer deductible and its applicable share of insured losses that exceed its applicable insurer deductible but are not compensated pursuant to paragraph (1), shall be obligated to pay for any portion of excess insured loss.

SEC. 4. TERRORISM BUY-DOWN FUND.

    The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
      (1) by inserting after section 106 the following new section:

`SEC. 106A. TERRORISM BUY-DOWN FUND.

    `(a) Establishment- The Secretary shall establish a Terrorism Buy-Down Fund (in this section referred to as the `Fund') that shall make available additional terrorism coverage for the insured losses of insurers, which shall be available for purchase by insurers on a voluntary basis.
    `(b) Purchase of Deductible, Co-Share, and Trigger Buy-Down Coverage-
      `(1) IN GENERAL- An insurer may purchase deductible, co-share, and pre-trigger buy-down coverage (in this section referred to as `buy-down coverage') through the Fund by making an election, in advance, to treat some or all of the premiums it has disclosed pursuant to section 106(b)(3) as fee charges for the Program imposed by the Secretary and remitting such amounts to the Fund.
      `(2) LIMITS- An insurer may not purchase buy-down coverage in an amount greater than the lesser of--
        `(A) the highest amount specified in section 103(e)(1)(C); and
        `(B) the insurer's one-in-one-hundred-year risk exposure to acts of terrorism .
    `(c) Buy-Down Coverage- The Fund shall provide the buy-down coverage to an insurer for losses for acts of terrorism , without application of the insurer deductible and in addition to any otherwise payable Federal share of compensation pursuant to section 103(e).
    `(d) Build-up- The buy-down coverage that shall be payable to an insurer for qualifying losses shall be the aggregate of the insurer's buy-down coverage premiums plus interest accrued on such amounts.
    `(e) Use by Insurers-
      `(1) QUALIFYING LOSSES- For the purpose of this section, qualifying losses are insured losses by an insurer that are not excess losses and that do not include amounts for which Federal financial assistance pursuant to section 103(e) is received, notwithstanding any limits otherwise applicable regarding section 103(e)(1)(C) (regarding program triggers) or section 102(11) (regarding insurer deductibles).
      `(2) USE OF BUY-DOWN COVERAGE- An insurer may use any buy-down coverage payments received under subsection (f) to satisfy--
        `(A) the applicable insurer deductibles for the insurer;
        `(B) the portion of the insurer's losses that exceed the insurer deductible but are not compensated by the Federal share; and
        `(C) the insurer's obligations to pay for insured losses if the Program trigger under section 103(e)(1)(C) is not satisfied.
      `(3) BUY-DOWN COVERAGE DOES NOT REDUCE FEDERAL CO-SHARE- The receipt by an insurer of buy-down coverage under this section for insured losses shall not be considered with respect to calculating the insurer's insured losses with respect to the insurer's deductible and eligibility for Federal financial assistance pursuant to section 103(e).
      `(4) INSOLVENCY- An insurer may sell its rights to buy-down coverage from the Fund to another insurer as part of or to avoid an insolvency or as part of a merger, sale, or major reorganization.
    `(f) Payment of Buy-Down Coverage- The Fund shall pay the qualifying losses of an insurer purchasing buy-down coverage up to the amount described in subsection (d).
    `(g) Government Borrowing- The Secretary may borrow the funds from the Fund to offset, in whole or in part, the Federal share of compensation provided to all insurers under the Program, except that--
      `(1) the Fund shall always immediately provide any buy-down coverage payments required under subsection (f); and
      `(2) any such amounts borrowed must be replenished with appropriate interest.
    `(h) Risk-Sharing Mechanisms- The Secretary shall establish voluntary risk-sharing mechanisms for insurers purchasing buy-down coverage from the Fund to pool their reinsurance purchases and otherwise share terrorism risk.
    `(i) Termination- Upon termination of the Program under section 108, and subject to the Secretary's continuing authority under section 108(b) to adjust claims in satisfaction under the Program, the Secretary shall provide that the Fund shall become a privately-operated mutual terrorism reinsurance company owned by the insurers that have submitted buy-down coverage premiums in proportion to such premiums minus any buy-down coverage payments received.'; and
      (2) in the table of contents in section 1(b), by inserting after the item relating to section 106 the following new item:
      `Sec. 106A. Terrorism Buy-Down Fund.'.

SEC. 5. ANALYSIS AND STUDY.

    (a) Analysis of Market Conditions- Section 108 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking subsection (e) and inserting the following:
    `(e) Analysis of Market Conditions for Terrorism Risk Insurance -
      `(1) IN GENERAL- The Secretary, in consultation with the NAIC, representatives of the insurance industry, representatives of the securities industry, and representatives of policyholders, shall perform an analysis regarding the long-term availability and affordability of insurance for terrorism risk in the private marketplace, including coverage for--
        `(A) property and casualty insurance ;
        `(B) group life insurance ;
        `(C) workers' compensation;
        `(D) nuclear, biological, chemical, and radiological events; and
        `(E) commercial real estate.
      `(2) BIENNIAL REPORTS- The Secretary shall submit biennial reports to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, on its findings pursuant to the analysis conducted under paragraph (1). The first such report shall be submitted not later than the expiration of the 24-month period beginning on the date of the enactment of the Terrorism Risk Insurance Revision and Extension Act of 2007.
      `(3) TESTIMONY- Upon submission of each biennial report under paragraph (2), the Secretary shall provide oral testimony to the Committee on Financial Services of the House of Representatives and Committee on Banking, Housing, and Urban Affairs of the United States Senate regarding the report and the analysis under this subsection for which the report is submitted.'.
    (b) Commission on Terrorism Risk Insurance - Title I of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--
      (1) by adding at the end the following new section:

`SEC. 109. COMMISSION ON TERRORISM RISK INSURANCE .

    `(a) Establishment- There is hereby established the Commission on Terrorism Risk Insurance (in this section referred to as the `Commission').
    `(b) Membership-
      `(1) The Commission shall consist of 21 members, as follows:
        `(A) The Secretary of the Treasury or the designee of the Secretary.
        `(B) One member who is a State insurance commissioner, designated by the NAIC.
        `(C) 15 members, who shall be appointed by the President, who shall include--
          `(i) a representative of group life insurers;
          `(ii) a representative of property and casualty insurers with direct earned premium of $1,000,000,000 or less;
          `(iii) a representative of property and casualty insurers with direct earned premium of more than $1,000,000,000;
          `(iv) a representative of multiline insurers;
          `(v) a representative of independent insurance agents;
          `(vi) a representative of insurance brokers;
          `(vii) a policyholder representative;
          `(viii) a representative of the survivors of the victims of the attacks of September 11, 2001;
          `(ix) a representative of the reinsurance industry;
          `(x) a representative of workers' compensation insurers;
          `(xi) a representative from the commercial mortgage-backed securities industry;
          `(xii) a representative from a nationally recognized statistical rating organization;
          `(xiii) a real estate developer;
          `(xiv) a representative of workers' compensation insurers created by State legislatures, selected in consultation with the American Association of State Compensation Insurance Funds from among its members; and
          `(xv) a representative from the commercial real estate brokerage industry or the commercial property management industry.
        `(D) Four members, who shall serve as liaisons to the Congress, who shall include two members jointly selected by the Chairman and Ranking Member of the Committee on Financial Services of the House of Representatives and two members jointly selected by the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate.
      `(2) SECRETARY- The Program Director of the Terrorism Risk Insurance Act of the Department of the Treasury shall serve as Secretary of the Commission. The Secretary of the Commission shall determine the manner in which the Commission shall operate, including funding and staffing.
    `(c) Duties-
      `(1) IN GENERAL- The Commission shall identify and make recommendations regarding--
        `(A) possible actions to encourage, facilitate, and sustain provision by the private insurance industry in the United States of affordable coverage for losses due to an act or acts of terrorism ;
        `(B) possible actions or mechanisms to sustain or supplement the ability of the insurance industry in the United States to cover losses resulting from acts of terrorism in the event that--
          `(i) such losses jeopardize the capital and surplus of the insurance industry in the United States as a whole; or
          `(ii) other consequences from such acts occur, as determined by the Commission, that may significantly affect the ability of the insurance industry in the United States to cover such losses independently; and
        `(C) possible actions to significantly reduce the Federal role in covering losses resulting from acts of terrorism .
      `(2) EVALUATIONS- In identifying and making the recommendations required under paragraph (1), the Commission shall specifically evaluate the utility and viability of proposals aimed at improving the availability of insurance against terrorism risk in the private marketplace.
      `(3) INITIAL MEETING- The Commission shall hold its first meeting during the 3-month period that begins 15 months after the date of the enactment of the Terrorism Risk Insurance Revision and Extension Act of 2007.
      `(4) REPORTS-
        `(A) CONTENTS- The Commission shall submit two reports to the Congress that--
          `(i) evaluate and make recommendations regarding whether there is a need for a Federal terrorism risk insurance program;
          `(ii) if so, include a specific, detailed recommendation for the replacement of the Program under this title; and
          `(iii) include the identifications, evaluations, and recommendations required under paragraphs (1) and (2).
        `(B) TIMING- The first report required under subparagraph (A) shall be submitted before the expiration of the 60-month period beginning on the date of the enactment of the Terrorism Risk Insurance Revision and Extension Act of 2007. The second such report shall be submitted before the expiration of the 96-month period beginning upon such date of enactment.'; and
      (2) in the table of contents in section 1(b), by inserting after the item relating to section 108 the following new item:
      `Sec. 109. Commission on Terrorism Risk Insurance .'.

SEC. 6. APPLICABILITY.

    The amendments made by this Act shall apply beginning on January 1, 2008. The provisions of the Terrorism Risk Insurance Act of 2002, as in effect on the day before the date of the enactment of this Act, shall apply through the end of December 31, 2007.

Passed the House of Representatives September 19, 2007


Sources: Embassy of Israel

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