,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dhga ,,in ,,the ,,house ,,of ,,representatives ,june #ag1 #bjad ,mr4 ,neugebauer 7for himself and ,mr4 ,westmoreland7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to reauthorize the ,terrorism ,risk ,insurance ,act of #bjjb1 and for other purposes4 #a4 ,short title and table of contents 7a7 ,short title ,this ,act may be cited as the ,,tria ,reform ,act of #bjad4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title and table of contents4 ,sec4 #b4 ,references4 ,sec4 #c4 ,extension of program4 ,sec4 #d4 ,certification of acts of terrorism4 ,sec4 #e4 ,separate treatment of conventional terrorism from ,,nbcr terrorism4 ,sec4 #f4 ,availability of coverage4 ,sec4 #g4 ,terrorism loss risk-spreading premiums amount4 ,sec4 #h4 ,increase of aggregate retention amount2 mandatory recoupment4 ,sec4 #i4 ,terrorism loss risk-spreading premium4 ,sec4 #aj4 ,risk-sharing mechanisms4 ,sec4 #aa4 ,reporting of terrorism insurance data4 ,sec4 #ab4 ,delivery of notices to policyholders4 ,sec4 #ac4 ,definition of control4 ,sec4 #ad4 ,annual study of small insurer market competitiveness4 ,sec4 #ae4 ,,cbo and ,,omb studies regarding budgeting for costs of ,federal insurance programs4 ,sec4 #af4 ,,gao study on upfront premiums and capital reserve fund4 #b4 ,references ,except as otherwise expressly provided1 wherever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note74 #c4 ,extension of program 7a7 ,in general ,subsection 7a7 of section #ajh 7#ae ,u4,s4,c4 #fgja note7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjai4 7b7 ,program years ,subparagraph 7,g7 of section #ajb7aa7 7#ae ,u4,s4,c4 #fgja note7 is amended by striking #bjad and inserting #bjai4 #d4 ,certification of acts of terrorism 7a7 ,in general ,paragraph 7#a7 of section #ajb 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 in subparagraph 7,a71 in the matter preceding clause 7i71 by striking concurrence with the ,secretary of ,state and inserting consultation with the ,secretary of ,homeland ,security2 7#b7 in subparagraph 7,b7-- 7,a7 in clause 7i71 by striking 2 or and inserting a period2 7,b7 by striking clause 7ii72 and 7,c7 by striking terrorism if-- and all that follows through 7,i7 the act and inserting terrorism if the act2 7#c7 by redesignating subparagraphs 7,c7 and 7,d7 as subparagraphs 7,e7 and 7,g71 respectively2 7#d7 by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 ,timing of certification 7i7 ,preliminary certification notice ,the ,secretary shall issue a preliminary certification notice indicating whether an act is expected to be a certified act of terrorism not later than #ae days after-- 7,i7 the date of the occurrence of a potential act of terrorism2 or 7,,ii7 the receipt of a petition seeking a preliminary certification decision submitted by an insurer having an in-force policy or policies that could be affected by a certification decision4 7ii7 ,final certification notice ,not later than #ij days after the date of the occurrence of a potential act of terrorism or the receipt of a petition submitted to the ,secretary pursuant to clause 7i77,,ii71 the ,secretary shall issue a final certification notice indicating whether an act is a certified act of terrorism for purposes of this ,act4 7iii7 ,rule of construction ,failure to issue a preliminary certification notice under clause 7i7 shall not prevent the ,secretary from issuing a final certification notice under clause 7ii74 2 and 7#e7 by inserting before subparagraph 7,g71 as so redesignated by paragraph 7#c7 of this subsection1 the following new subparagraph3 7,f7 ,failure to make determination ,if the ,secretary does not certify1 or make a determination not to certify1 an act as an act of terrorism before the expiration of the #ij-;day period beginning on the occurrence of such act1 such act shall be treated for purposes of this ,act as having been determined by the ,secretary not to be an act of terrorism and such determination shall be final and shall not be subject to judicial review4 4 7b7 ,applicability ,the amendments made by subsection 7a7 shall apply to the ,program ,year for the ,terrorism ,insurance ,program established by title ,i of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 that begins on ,january #a1 #bjae1 and ,program ,years thereafter4 #e4 ,separate treatment of conventional terrorism from ,,nbcr terrorism 7a7 ,definition 7#a7 ,in general ,section #ajb 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7,a7 in paragraph 7#a71 by inserting after subparagraph 7,c71 as added by section #d7;a77#d7 of this ,act1 the following new subparagraph3 7,d7 ,act of ,,nbcr terrorism ,each certification of an act of terrorism under subparagraph 7,a7 shall include a determination of whether such act involves ,,nbcr terrorism4 2 7,b7 by redesignating paragraphs 7#i7 through 7#af7 as paragraphs 7#aj7 through 7#ag71 respectively2 and 7,c7 by inserting after paragraph 7#h7 the following new paragraph3 7#i7 ,,nbcr terrorism ,notwithstanding paragraph 7#a71 the term ,,nbcr terrorism means an act of terrorism to the extent that the insured losses involve1 regardless of any other cause or event that contributes concurrently or in any sequence to such insurance loss-- 7,a7 an act of terrorism that is carried out by means of the dispersal or application of radioactive material1 or through the use of a nuclear weapon or device that involves or produces a nuclear reaction1 nuclear radiation1 or radioactive contamination2 7,b7 the release of radioactive material1 and it appears that one purpose of the act of terrorism was to release such material2 7,c7 an act of terrorism that is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical material2 or 7,d7 the release of pathogenic or poisonous biological or chemical material1 and it appears that one purpose of the act of terrorism was to release such material4 4 7#b7 ,applicability ,the amendments made by paragraph 7#a7 shall apply to the ,program ,year for the ,terrorism ,insurance ,program established by title ,i of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 that begins on ,january #a1 #bjaf1 and ,program ,years thereafter4 7b7 ,federal share of insured loss compensation ,subparagraph 7,a7 of section #ajc7;e77#a7 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 by striking ,the ,federal share and inserting ,subject to subparagraphs 7,b7 and 7,c71 the ,federal share2 7#b7 by striking an insurer during the ,transition period and inserting the following3 an insurer-- 7i7 during the ,transition period1 2 7#c7 by inserting through the ,program ,year ending on ,december #ca1 #bjae1 after each ,program ,year thereafter2 7#d7 by striking the period at the end and inserting 2 and2 and 7#e7 by adding at the end the following new clause3 7ii7 shall be equal to-- 7,i7 except as provided in subclause 7,,ii7-- 7aa7 during the ,program ,year beginning on ,january #a1 #bjaf1 #hd percent of that portion of the amount of such insured losses that exceeds the applicable insurer deductible required to be paid during such ,program ,year2 7bb7 during the ,program ,year beginning on ,january #a1 #bjag1 #hc percent of that portion of the amount of such insured losses that exceeds the applicable insurer deductible required to be paid during such ,program ,year2 7cc7 during the ,program ,year beginning on ,january #a1 #bjah1 #hb percent of that portion of the amount of such insured losses that exceeds the applicable insurer deductible required to be paid during such ,program ,year2 and 7dd7 during the ,program ,year beginning on ,january #a1 #bjai1 #hj percent of that portion of the amount of such insured losses that exceeds the applicable insurer deductible required to be paid during such ,program ,year2 and 7,,ii7 in the case of insured losses resulting from acts of ,,nbcr terrorism1 during the ,program ,year beginning on ,january #a1 #bjaf1 and each ,program ,year thereafter1 #he percent of that portion of the amount of such insured losses that exceeds the applicable insurer deductible required to be paid during such ,program ,year4 4 7c7 ,program trigger ,subparagraph 7,b7 of section #ajc7;e77#a7 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 in the matter preceding clause 7i7-- 7,a7 by striking a certified act and inserting certified acts2 and 7,b7 by striking such certified act and inserting such certified acts2 7#b7 in clause 7i7 by striking or at the end2 7#c7 in clause 7ii71 by striking the period at the end and inserting the following through the ,program ,year ending on ,december #ca1 #bjae2 or2 7#d7 by adding at the end the following3 7iii7 7,i7 except as provided in subclause 7,,ii7-- 7aa7 #bjj1jjj1jjj1 with respect to such insured losses occurring in the ,program ,year beginning on ,january #a1 #bjaf2 7bb7 #cjj1jjj1jjj1 with respect to such insured losses occurring in the ,program ,year beginning on ,january #a1 #bjag2 7cc7 #djj1jjj1jjj1 with respect to such insured losses occurring in the ,program ,year beginning on ,january #a1 #bjah2 and 7dd7 #ejj1jjj1jjj1 with respect to such insured losses occurring in the ,program ,year beginning on ,january #a1 #bjai2 and 7,,ii7 in the case of an act of ,,nbcr terrorism1 #ajj1jjj1jjj1 with respect to such insured losses occurring in the ,program ,year beginning on ,january #a1 #bjaf1 or any ,program ,year thereafter4 2 and 7#e7 by adding after and below clause 7iii71 as added by paragraph 7#d7 of this subsection1 the following3 ,in determining the aggregate industry insured losses resulting from certified acts of terrorism for purposes of this subparagraph1 the ,secretary shall not consider any act of terrorism resulting1 in the aggregate1 in less than #ej1jjj1jjj in insured losses4 4 #f4 ,availability of coverage ,subsection 7c7 of section #ajc 7#ae ,u4,s4,c4 #fgja note7 is amended to read as follows3 7c7 ,mandatory availability 7#a7 ,in general ,except as provided in paragraph 7#b71 during each ,program ,year1 each entity that meets the definition of an insurer under section #ajb shall make available-- 7,a7 in all of its property and casualty insurance policies1 coverage for insured losses2 and 7,b7 property and casualty insurance coverage for insured losses that does not differ materially from the terms1 amounts1 and other coverage limitations applicable to losses arising from events other than acts of terrorism4 7#b7 ,no mandatory availability for small insurers ,the ,secretary shall provide1 by regulation and in consultation with ,state insurance regulatory authorities1 that paragraph 7#a7 shall not apply for a ,program ,year with respect to any small insurer 7as such term is defined in such regulations by the ,secretary7 that1 at the option of the insurer1 makes a request for such inapplicability for such ,program ,year to the appropriate ,state insurance regulatory authority for the ,state in which such insurer is domiciled and is determined by such ,state insurance regulatory authority to meet such requirements for financial hardship or financial infeasibility of providing coverage for insured losses as the ,secretary shall establish in such regulations4 ,the insurer shall provide notice1 in a manner satisfactory to the ,state insurance regulatory authority1 informing affected prospective and current policyholders whether such coverage is not provided by the insurer4 ,this paragraph may not be construed to require any ,state insurance regulatory authority to undertake making determinations under this paragraph4 4 #g4 ,terrorism loss risk-spreading premiums amount 7a7 ,in general ,subparagraph 7,c7 of section #ajc7;e77#g7 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 by striking subparagraphs 7,a7 through 7,e7 and inserting subparagraphs 7,a7 through 7,f72 and 7#b7 by striking #acc percent and inserting #aej percent4 7b7 ,applicability ,the amendment made by subsection 7a7 shall apply to the ,program ,year for the ,terrorism ,insurance ,program established by title ,i of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 that begins on ,january #a1 #bjaf1 and ,program ,years thereafter4 #h4 ,increase of aggregate retention amount2 mandatory recoupment 7a7 ,in ,general ,paragraph 7#f7 of section #ajc7;e7 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 in subparagraph 7,d77ii71 by striking and at the end2 7#b7 in subparagraph 7,e7-- 7,a7 in the matter preceding clause 7i71 by inserting through the ,program ,year ending on ,december #ca1 #bjae before the comma2 and 7,b7 in clause 7ii71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following new subparagraph3 7,f7 for the ,program ,year beginning ,january #a1 #bjaf1 and each ,program ,year thereafter1 the lesser of-- 7i7 the amount that is equal to the sum of the insurer deductibles for the ,program ,year for all insurers participating in the ,program2 and 7ii7 the aggregate amount1 for all insurers1 of insured losses during such ,program ,year4 4 7b7 ,mandatory recoupment 7#a7 ,amount2 timing ,paragraph 7#g7 of section #ajc7;e7 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7,a7 by striking subparagraphs 7,a7 and 7,b7 and inserting the following new subparagraph3 7,a7 ,mandatory recoupment amount ,for purposes of this paragraph1 the mandatory recoupment amount for each of the periods referred to in subparagraphs 7,a7 through 7,f7 of paragraph 7#f7 shall be equal to the lesser of-- 7i7 the aggregate amount1 for all insurers1 of insured losses during such period that are compensated by the ,federal ,government pursuant to paragraph 7#a72 or 7ii7 the insurance marketplace aggregate retention amount under paragraph 7#f7 for such period4 2 7,b7 in subparagraph 7,e77i77,,iii71 by striking after ,january #a1 #bjab and inserting before ,december #ca1 #bjad2 and 7,c7 by redesignating subparagraphs 7,c71 7,d71 7,e7 7as so amended71 and 7,f7 as subparagraphs 7,b71 7,c71 7,d71 and 7,e71 respectively4 7#b7 ,conforming amendments ,section #ajc7;e7 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7,a7 in paragraph 7#g77;,d77i71 as so redesignated by paragraph 7#a77;,b7 of this subsection1 by striking subparagraph 7,c7 and inserting subparagraph 7,b72 and 7,b7 in paragraph 7#h7-- 7i7 in subparagraph 7,c71 by striking paragraph 7#g77;,d7 and inserting paragraph 7#g77;,c72 and 7ii7 in subparagraph 7,d77ii71 by striking paragraph 7#g77;,e7 and inserting paragraph 7#g77;,d74 #i4 ,terrorism loss risk-spreading premium 7a7 ,in general ,section #ajc7;e7 7#ae ,u4,s4,c4 #fgja note7 is amended by striking paragraph 7#h7 and inserting the following new paragraph3 7#h7 ,terrorism loss risk-spreading premiums 7,a7 ,establishment ,after an act of terrorism1 the ,secretary shall1 to the extent provided in subparagraph 7#g77;,c71 and may1 to the extent provided in subparagraph 7#g77;,d71 establish terrorism loss risk-spreading premiums1 which shall be imposed as a policyholder premium surcharge on property and casualty insurance policies for all participating insurers in force after the date of such establishment4 7,b7 ,collection ,the ,secretary shall provide for insurers to collect terrorism loss risk-spreading premiums and remit such amounts collected to the ,secretary4 7,c7 ,determination of premiums ,in determining the method and manner of imposing terrorism loss risk-spreading premiums1 including the amount of such premiums1 the ,secretary shall-- 7i7 impose such terrorism loss risk-spreading premiums beginning with such period of coverage during the year as the ,secretary determines appropriate1 but shall commence imposition of such premiums not later than #ah months after the occurrence of the act of terrorism for which such premiums are imposed2 7ii7 base any terrorism loss risk-spreading premium on a percentage of the premium amount charged for property and casualty insurance coverage under the policy2 and 7iii7 take into consideration-- 7,i7 the economic impact on commercial centers of urban areas1 including the effect on commercial rents and commercial insurance premiums1 particularly rents and premiums charged to small businesses1 and the availability of lease space and commercial insurance within urban areas2 7,,ii7 the risk factors related to rural areas and smaller commercial centers1 including the potential exposure to loss and the likely magnitude of such loss1 as well as any resulting cross-subsidization that might result2 and 7,,iii7 the various exposures to terrorism risk for different lines of insurance4 7,d7 ,percentage limitation ,a terrorism loss risk-spreading premium collected on a discretionary basis pursuant to paragraph 7#g77;,d7 shall not be less than1 on an annual basis1 the amount equal to #c percent of the premium charged for property and casualty insurance coverage under the policy4 7,e7 ,timing of premiums ,the ,secretary may adjust the timing of terrorism loss risk-spreading premiums to provide for equivalent application of the provisions of this title to policies that are not based on a calendar year1 or to apply such provisions on a daily1 monthly1 or quarterly basis1 as appropriate4 4 7b7 ,applicability ,the amendment made by subsection 7a7 shall apply to the ,program ,year for the ,terrorism ,insurance ,program established by title ,i of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 that begins on ,january #a1 #bjaf1 and ,program ,years thereafter4 #aj4 ,risk-sharing mechanisms 7a7 ,in ,general ,section #ajc7;e7 7#ae ,u4,s4,c4 #fgja note7 is amended by adding at the end the following new paragraph3 7#i7 ,risk-sharing mechanisms 7,a7 ,finding2 rule of construction ,the ,congress finds that it is desirable to encourage the growth of nongovernmental1 private market reinsurance capacity for protection against losses arising from acts of terrorism4 ,therefore1 nothing in this title shall prohibit insurers from developing risk-sharing mechanisms 7including mutual reinsurance facilities and agreements1 use of the capital markets1 and insurance-linked securities7 to voluntarily reinsure terrorism losses between and among themselves that are not subject to reimbursement under this section4 7,b7 ,establishment of advisory committee ,the ,secretary shall appoint an ,advisory ,committee to-- 7i7 encourage the creation and development of such risk-sharing mechanisms2 7ii7 assist the ,secretary and be available to administer such risk-sharing mechanisms2 and 7iii7 develop articles of incorporation1 bylaws1 and a plan of operation for any long-term reinsurance facility authorized or created in the future4 7,c7 ,membership ,the ,advisory ,committee shall be composed of nine members who are directors1 officers1 or other employees of insurers1 reinsurers1 or capital market participants that are participating or that desire to participate in such mechanisms1 and who are representative of the affected sectors of the insurance industry1 including commercial property insurance1 commercial casualty insurance1 reinsurance1 and alternative risk transfer industries4 4 7b7 ,applicability ,the amendment made by subsection 7a7 shall apply to the ,program ,year for the ,terrorism ,insurance ,program established by title ,i of the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 that begins on ,january #a1 #bjae1 and ,program ,years thereafter4 #aa4 ,reporting of terrorism insurance data ,section #ajd 7#ae ,u4,s4,c4 #fgja note7 is amended by adding at the end the following new subsection3 7h7 ,reporting of terrorism insurance data 7#a7 ,authority ,during the ,program ,year beginning on ,january #a1 #bjaf1 and in each ,program ,year thereafter1 the ,secretary shall require insurers participating in the ,program to submit to the ,secretary such information regarding insurance coverage for terrorism losses of such insurers as the ,secretary considers appropriate to analyze the effectiveness of the ,program1 which shall include information regarding-- 7,a7 lines of insurance with exposure to such losses2 7,b7 premiums earned on such coverage2 7,c7 geographical location of exposures2 7,d7 pricing of such coverage2 7,e7 the take-up rate for such coverage2 7,f7 the amount of private reinsurance for acts of terrorism purchased2 and 7,g7 such other matters as the ,secretary considers appropriate4 7#b7 ,reports ,not later than #f months after the termination of the ,program ,year beginning on ,january #a1 #bjaf1 and not later than #f months after the termination of each ,program ,year thereafter1 the ,secretary shall submit a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate that includes-- 7,a7 an analysis of the overall effectiveness of the ,program2 7,b7 an evaluation of any changes or trends in the data collected under paragraph 7#a72 7,c7 an evaluation of whether any aspects of the ,program have the effect of discouraging or impeding insurers from providing commercial property casualty insurance coverage or coverage for acts of terrorism2 7,d7 an evaluation of the impact of the ,program on workers' compensation insurers2 7,e7 an evaluation of the impact on availability and affordability of terrorism insurance coverage and fiscal protection of the taxpayers of separate ,federal treatment under the ,program for nuclear1 biological1 chemical1 and radiological terrorism2 and 7,f7 in the case of the data reported in paragraph 7#a77;,b71 an updated estimate of the total amount earned since the commencement of ,program ,year #a4 7#c7 ,protection of data ,to the extent possible1 the ,secretary shall contract with an insurance statistical aggregator to collect the information described in paragraph 7#a71 which shall keep any nonpublic information confidential and provide it to the ,secretary in an aggregate form or in such other form or manner that does not permit identification of the insurer submitting such information4 7#d7 ,advance coordination ,before collecting any data or information under paragraph 7#a7 from an insurer1 or affiliate of an insurer1 the ,secretary shall coordinate with the appropriate ,state insurance regulatory authorities or their representatives and any relevant government agency or publicly available sources to determine if the information to be collected is available from1 and may be obtained in a timely manner by1 individually or collectively1 such entities4 ,if the ,secretary determines that such data or information is available1 and may be obtained in a timely matter1 from such entities1 the ,secretary shall obtain the data or information from such entities4 ,if the ,secretary determines that such data or information is not so available1 the ,secretary may collect such data or information from an insurer and affiliates4 7#e7 ,confidentiality 7,a7 ,retention of privilege ,the submission of any non-publicly available data and information to the ,secretary and the sharing of any non-publicly available data with or by the ,secretary among other ,federal agencies1 the ,state insurance regulatory authorities and their collective agents1 or any other entities under this subsection shall not constitute a waiver of1 or otherwise affect1 any privilege arising under ,federal or ,state law 7including the rules of any ,federal or ,state court7 to which the data or information is otherwise subject4 7,b7 ,continued application of prior confidentiality agreements ,any requirement under ,federal or ,state law to the extent otherwise applicable1 or any requirement pursuant to a written agreement in effect between the original source of any non-publicly available data or information and the source of such data or information to the ,secretary1 regarding the privacy or confidentiality of any data or information in the possession of the source to the ,secretary1 shall continue to apply to such data or information after the data or information has been provided pursuant to this subsection4 7,c7 ,information-sharing agreement ,any data or information obtained by the ,secretary under this subsection may be made available to ,state insurance regulatory authorities1 individually or collectively through an information-sharing agreement that-- 7i7 shall comply with applicable ,federal law2 and 7ii7 shall not constitute a waiver of1 or otherwise affect1 any privilege under ,federal or ,state law 7including any privilege referred to in subparagraph 7,a7 and the rules of any ,federal or ,state court7 to which the data or information is otherwise subject4 7,d7 ,agency disclosure requirements ,section #eeb of title #e1 ,united ,states ,code1 including any exceptions thereunder1 shall apply to any data or information submitted under this subsection to the ,secretary by an insurer or affiliate of an insurer4 4 #ab4 ,delivery of notices to policyholders ,section #ajc7;b77#b7 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 in subparagraph 7,b71 by striking 1 purchase12 and 7#b7 in subparagraph 7,c71 by striking 1 purchase14 #ac4 ,definition of control ,paragraph 7#c7 of section #ajb 7#ae ,u4,s4,c4 #fgja note7 is amended-- 7#a7 by redesignating subparagraphs 7,a71 7,b71 and 7,c7 as clauses 7i71 7ii71 and 7iii71 respectively and realigning such clauses1 as so redesignated1 so as to be indented six ems from the left margin2 7#b7 in the matter preceding clause 7i7 7as so redesignated71 by striking ,an entity has and inserting the following3 7,a7 ,in general ,an entity has 2 and 7#c7 by adding at the end the following new subparagraph3 7,b7 ,rule of construction ,an entity1 including any affiliate thereof1 does not have control over another entity if1 as of the date of the enactment of the ,,tria ,reform ,act of #bjad1 the entity is acting as an attorney-in-fact1 as defined by the ,secretary1 for the other entity and such other entity is a reciprocal insurer1 provided that the entity is not1 for reasons other than the attorney-in-fact relationship1 defined as having control under subparagraph 7,a74 4 #ad4 ,annual study of small insurer market competitiveness ,section #ajh 7#ae ,u4,s4,c4 #fgja note7 is amended by adding at the end the following new subsection3 7h7 ,study of small insurer market competitiveness 7#a7 ,in general ,the ,secretary shall conduct an annual study of small insurers participating in the ,program1 and identify any competitive challenges small insurers face in the terrorism risk insurance marketplace1 including-- 7,a7 changes to the market share1 premium volume1 and policyholder surplus of small insurers relative to large insurers2 7,b7 how the property and casualty insurance market for terrorism risk differs between small and large insurers1 and whether such a difference exists within other perils2 7,c7 the impact of the ,program's mandatory availability requirement under section #ajc7;c7 and the voluntary opt-out for small insurers2 7,d7 the effect of increasing the trigger amount for the ,program under section #ajc7;e77#a77;,b77iii77,i7 on small insurers2 7,e7 the availability and cost of private reinsurance for small insurers2 and 7,f7 the impact that ,state workers compensation laws have on small insurers1 particularly the impact of mandatory1 non-excludable participation and unlimited financial liability4 7#b7 ,timing and report ,the ,secretary shall complete the first study under paragraph 7#a7 and submit a report to the ,congress setting forth the findings and conclusions of the study not later than ,june #cj1 #bjaf1 and shall complete an annual study under paragraph 7#a7 and submit a report regarding such study to the ,congress by ,june #a annually thereafter4 4 #ae4 ,,cbo and ,,omb studies regarding budgeting for costs of ,federal insurance programs ,not later than the expiration of the #ab-month period beginning on the date of the enactment of this ,act1 the ,director of the ,congressional ,budget ,office and the ,director of the ,office of ,management and ,budget shall each-- 7#a7 conduct a study to determine the feasibility of applying accrual accounting concepts to budgeting for the costs of the ,terrorism ,risk ,insurance ,program and for the costs of the other ,federal insurance programs2 and 7#b7 submit a report regarding such study to the ,committees on the ,budget of the ,house of ,representatives and the ,senate1 which shall include a recommendation specifically addressing the feasibility of applying fair value concepts to budgeting for the costs of ,federal insurance programs1 including the ,terrorism ,risk ,insurance ,program4 #af4 ,,gao study on upfront premiums and capital reserve fund 7a7 ,study ,not later than #b years after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall complete a study on the viability of the ,federal ,government-- 7#a7 assessing and collecting upfront premiums on insurers that participate in the ,terrorism ,risk ,insurance ,program established under the ,terrorism ,risk ,insurance ,act of #bjjb 7#ae ,u4,s4,c4 #fgja note7 7in this section referred to as the ,program71 which shall include a comparison of practices in international markets to assess and collect premiums either before or after terrorism losses are incurred2 and 7#b7 creating a capital reserve fund under the ,program and requiring insurers participating in the ,program to dedicate capital specifically for terrorism losses before such losses are incurred1 which shall include a comparison of practices in international markets to establish reserve funds4 7b7 ,required content ,the study required under subsection 7a7 shall examine1 but shall not be limited to1 the following issues3 7#a7 ,upfront premiums ,with respect to upfront premiums described in subsection 7a77#a7-- 7,a7 how the ,federal ,government could determine the price of such upfront premiums on insurers that participate in the ,program2 7,b7 how the ,federal ,government could collect such upfront premiums2 7,c7 how the ,federal ,government could ensure that such upfront premiums are not spent for purposes other than satisfying claims through the ,program2 7,d7 how the assessment and collection of such upfront premiums could affect take-up rates for terrorism risk coverage in different regions and industries2 7,e7 the effect of collecting such upfront premiums on the private market for terrorism risk reinsurance2 and 7,f7 the size of the ,federal ,government subsidy insurers currently receive through their participation in the ,program4 7#b7 ,capital reserve fund ,with respect to the capital reserve fund described in subsection 7a77#b7-- 7,a7 how the creation of a capital reserve fund would affect the ,federal ,government's fiscal exposure under the ,terrorism ,risk ,insurance ,program and the ability of the ,program to meet its statutory purposes2 7,b7 how a capital reserve fund would impact insurers and reinsurers1 including liquidity1 insurance pricing1 and capacity to provide terrorism risk coverage2 7,c7 the feasibility of segregating funds attributable to terrorism risk from funds attributable to other insurance lines2 7,d7 how a capital reserve fund would be viewed and treated under current ,financial ,accounting ,standards ,board accounting rules and the tax laws2 and 7,e7 how a capital reserve fund would affect the ,states' ability to regulate insurers participating in the ,program4 7#c7 ,international practices ,with respect to international markets referred to in paragraphs 7#a7 and 7#b7 of subsection 7,a71 how other countries1 if any-- 7,a7 have established terrorism insurance structures2 7,b7 charge premiums or otherwise collect funds to pay for the costs of terrorism insurance structures1 including risk and administrative costs2 and 7,c7 have established capital reserve funds to pay for the costs of terrorism insurance structures4 7#d7 ,duration ,with respect to the capital reserve fund described in subsection 7a77#b71 how the duration of the ,program would affect the viability of such capital reserve fund4 7c7 ,report ,upon completion of the study required under subsection 7a71 the ,comptroller ,general shall submit a report on the results of such study to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 7d7 ,public availability ,the study and report required under this section shall be made available to the public in electronic form and shall be published on the website of the ,government ,accountability ,office4