,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #dhga  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #ag1 #bjad ,mr4 
,neugebau] 7= himself & ,mr4 ,we/morel&7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,f9ancial ,s]vices   
,a ,,bill  ,to reau?orize ! ,t]rorism   
,risk ,insurance ,act ( #bjjb1 & = o!r  
purposes4  #a4 ,%ort title & table (    
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,,tria ,re=m ,act ( #bjad4  
7b7 ,table ( cont5ts ,! table ( cont5ts 
= ?is ,act is z foll[s3  ,sec4 #a4 ,%ort
 title & table ( cont5ts4 ,sec4 #b4     
,ref]5ces4 ,sec4 #c4 ,ext5sion (        
program4 ,sec4 #d4 ,c]tification ( acts 
( t]rorism4 ,sec4 #e4 ,sep>ate treatm5t 
( conv5tional t]rorism f ,,nbcr         
t]rorism4 ,sec4 #f4 ,availability (     
cov]age4 ,sec4 #g4 ,t]rorism loss       
risk-spread+ premiums am\nt4 ,sec4 #h4  
,increase ( aggregate ret5tion am\nt2   
m&atory rec\pm5t4 ,sec4 #i4 ,t]rorism   
loss risk-spread+ premium4 ,sec4 #aj4   
,risk-%>+ me*anisms4 ,sec4 #aa4 ,report+

 ( t]rorism insurance data4 ,sec4 #ab4  
,deliv]y ( notices to policyhold]s4     
,sec4 #ac4 ,def9ition ( control4 ,sec4  
#ad4 ,annual /udy ( small insur] m>ket  
competitiv5ess4 ,sec4 #ae4 ,,cbo & ,,omb
 /udies reg>d+ budget+ = co/s ( ,f$]al  
insurance programs4 ,sec4 #af4 ,,gao    
/udy on upfront premiums & capital      
res]ve fund4  #b4 ,ref]5ces ,except z   
o!rwise expressly provid$1 :]ev] 9 ?is  
,act an am5dm5t or repeal is express$ 9 
t]ms ( an am5dm5t to1 or repeal (1 a    
section or o!r provision1 ! ref]5ce %all
 be consid]$ to be made to a section or 
o!r provision ( ! ,t]rorism ,risk       
,insurance ,act ( #bjjb 7#ae ,u4,s4,c4  
#fgja note74  #c4 ,ext5sion ( program   
7a7 ,9 g5]al ,subsection 7a7 ( section  
#ajh 7#ae ,u4,s4,c4 #fgja note7 is am5d$
 by /rik+ ,decemb] #ca1 #bjad & ins]t+  
,decemb] #ca1 #bjai4  7b7 ,program ye>s 
,subp>agraph 7,g7 ( section #ajb7aa7    
7#ae ,u4,s4,c4 #fgja note7 is am5d$ by  
/rik+ #bjad & ins]t+ #bjai4  #d4        
,c]tification ( acts ( t]rorism  7a7 ,9 

g5]al ,p>agraph 7#a7 ( section #ajb 7#ae
 ,u4,s4,c4 #fgja note7 is am5d$--  7#a7 
9 subp>agraph 7,a71 9 ! matt] prec$+    
clause 7i71 by /rik+ concurr5ce ) !     
,secret>y ( ,/ate & ins]t+ consultation 
) ! ,secret>y ( ,homel& ,security2  7#b7
 9 subp>agraph 7,b7--  7,a7 9 clause    
7i71 by /rik+ 2 or & ins]t+ a p]iod2    
7,b7 by /rik+ clause 7ii72 &  7,c7 by   
/rik+ t]rorism if-- & all t foll[s ?r\gh
 7,i7 ! act & ins]t+ t]rorism if ! act2 
7#c7 by r$esignat+ subp>agraphs 7,c7 &  
7,d7 z subp>agraphs 7,e7 & 7,g71        
respectively2  7#d7 by ins]t+ aft]      
subp>agraph 7,b7 ! foll[+ new           
subp>agraph3  7,c7 ,tim+ ( c]tification 
7i7 ,prelim9>y c]tification notice ,!   
,secret>y %all issue a prelim9>y        
c]tification notice indicat+ :e!r an act
 is expect$ to be a c]tifi$ act (       
t]rorism n lat] ?an #ae days aft]--     
7,i7 ! date ( ! occurr5ce ( a pot5tial  
act ( t]rorism2 or  7,,ii7 ! receipt ( a
 petition seek+ a prelim9>y c]tification
 decision submitt$ by an insur] hav+ an 

9-=ce policy or policies t c\ld be      
affect$ by a c]tification decision4     
7ii7 ,f9al c]tification notice ,n lat]  
?an #ij days aft] ! date ( ! occurr5ce (
 a pot5tial act ( t]rorism or ! receipt 
( a petition submitt$ to ! ,secret>y    
pursuant to clause 7i77,,ii71 !         
,secret>y %all issue a f9al c]tification
 notice indicat+ :e!r an act is a       
c]tifi$ act ( t]rorism = purposes ( ?is 
,act4  7iii7 ,rule ( con/ruction        
,failure to issue a prelim9>y           
c]tification notice "u clause 7i7 %all n
 prev5t ! ,secret>y f issu+ a f9al      
c]tification notice "u clause 7ii74  2 &
  7#e7 by ins]t+ be=e subp>agraph 7,g71 
z s r$esignat$ by p>agraph 7#c7 ( ?is   
subsection1 ! foll[+ new subp>agraph3   
7,f7 ,failure to make det]m9ation ,if ! 
,secret>y does n c]tify1 or make a      
det]m9ation n to c]tify1 an act z an act
 ( t]rorism be=e ! expiration ( !       
#ij-;day p]iod beg9n+ on ! occurr5ce (  
su* act1 su* act %all be treat$ =       
purposes ( ?is ,act z hav+ be5 det]m9$  

by ! ,secret>y n to be an act ( t]rorism
 & su* det]m9ation %all be f9al & %all n
 be subject to judicial review4  4  7b7 
,applicability ,! am5dm5ts made by      
subsection 7a7 %all apply to ! ,program 
,ye> = ! ,t]rorism ,insurance ,program  
e/abli%$ by title ,i ( ! ,t]rorism ,risk
 ,insurance ,act ( #bjjb 7#ae ,u4,s4,c4 
#fgja note7 t beg9s on ,janu>y #a1      
#bjae1 & ,program ,ye>s !reaft]4  #e4   
,sep>ate treatm5t ( conv5tional t]rorism
 f ,,nbcr t]rorism  7a7 ,def9ition  7#a7
 ,9 g5]al ,section #ajb 7#ae ,u4,s4,c4  
#fgja note7 is am5d$--  7,a7 9 p>agraph 
7#a71 by ins]t+ aft] subp>agraph 7,c71 z
 add$ by section #d7;a77#d7 ( ?is ,act1 
! foll[+ new subp>agraph3  7,d7 ,act (  
,,nbcr t]rorism ,ea* c]tification ( an  
act ( t]rorism "u subp>agraph 7,a7 %all 
include a det]m9ation ( :e!r su* act    
involves ,,nbcr t]rorism4  2  7,b7 by   
r$esignat+ p>agraphs 7#i7 ?r\gh 7#af7 z 
p>agraphs 7#aj7 ?r\gh 7#ag71            
respectively2 &  7,c7 by ins]t+ aft]    
p>agraph 7#h7 ! foll[+ new p>agraph3    

7#i7 ,,nbcr t]rorism ,not)/&+ p>agraph  
7#a71 ! t]m ,,nbcr t]rorism means an act
 ( t]rorism to ! ext5t t ! insur$ losses
 involve1 reg>dless ( any o!r cause or  
ev5t t contributes concurr5tly or 9 any 
sequ5ce to su* insurance loss--  7,a7 an
 act ( t]rorism t is c>ri$ out by means 
( ! disp]sal or application (           
radioactive mat]ial1 or ?r\gh ! use ( a 
nucle> weapon or device t involves or   
produces a nucle> reaction1 nucle>      
radiation1 or radioactive contam9ation2 
7,b7 ! release ( radioactive mat]ial1 & 
x appe>s t "o purpose ( ! act ( t]rorism
 0 to release su* mat]ial2  7,c7 an act 
( t]rorism t is c>ri$ out by means ( !  
disp]sal or application ( pa?og5ic or   
poison\s biological or *emical mat]ial2 
or  7,d7 ! release ( pa?og5ic or        
poison\s biological or *emical mat]ial1 
& x appe>s t "o purpose ( ! act (       
t]rorism 0 to release su* mat]ial4  4   
7#b7 ,applicability ,! am5dm5ts made by 
p>agraph 7#a7 %all apply to ! ,program  
,ye> = ! ,t]rorism ,insurance ,program  

e/abli%$ by title ,i ( ! ,t]rorism ,risk
 ,insurance ,act ( #bjjb 7#ae ,u4,s4,c4 
#fgja note7 t beg9s on ,janu>y #a1      
#bjaf1 & ,program ,ye>s !reaft]4  7b7   
,f$]al %>e ( insur$ loss comp5sation    
,subp>agraph 7,a7 ( section #ajc7;e77#a7
 7#ae ,u4,s4,c4 #fgja note7 is am5d$--  
7#a7 by /rik+ ,! ,f$]al %>e & ins]t+    
,subject to subp>agraphs 7,b7 & 7,c71 ! 
,f$]al %>e2  7#b7 by /rik+ an insur]    
dur+ ! ,transition p]iod & ins]t+ !     
foll[+3  an insur]-- 7i7 dur+ !         
,transition p]iod1  2  7#c7 by ins]t+   
?r\gh ! ,program ,ye> end+ on ,decemb]  
#ca1 #bjae1 aft] ea* ,program ,ye>      
!reaft]2  7#d7 by /rik+ ! p]iod at ! end
 & ins]t+ 2 &2 &  7#e7 by add+ at ! end 
! foll[+ new clause3  7ii7 %all be equal
 to--  7,i7 except z provid$ 9 subclause
 7,,ii7--  7aa7 dur+ ! ,program ,ye>    
beg9n+ on ,janu>y #a1 #bjaf1 #hd p]c5t (
 t portion ( ! am\nt ( su* insur$ losses
 t exce$s ! applicable insur] d$uctible 
requir$ to be paid dur+ su* ,program    
,ye>2  7bb7 dur+ ! ,program ,ye> beg9n+ 

on ,janu>y #a1 #bjag1 #hc p]c5t ( t     
portion ( ! am\nt ( su* insur$ losses t 
exce$s ! applicable insur] d$uctible    
requir$ to be paid dur+ su* ,program    
,ye>2  7cc7 dur+ ! ,program ,ye> beg9n+ 
on ,janu>y #a1 #bjah1 #hb p]c5t ( t     
portion ( ! am\nt ( su* insur$ losses t 
exce$s ! applicable insur] d$uctible    
requir$ to be paid dur+ su* ,program    
,ye>2 &  7dd7 dur+ ! ,program ,ye>      
beg9n+ on ,janu>y #a1 #bjai1 #hj p]c5t (
 t portion ( ! am\nt ( su* insur$ losses
 t exce$s ! applicable insur] d$uctible 
requir$ to be paid dur+ su* ,program    
,ye>2 &  7,,ii7 9 ! case ( insur$ losses
 result+ f acts ( ,,nbcr t]rorism1 dur+ 
! ,program ,ye> beg9n+ on ,janu>y #a1   
#bjaf1 & ea* ,program ,ye> !reaft]1 #he 
p]c5t ( t portion ( ! am\nt ( su* insur$
 losses t exce$s ! applicable insur]    
d$uctible requir$ to be paid dur+ su*   
,program ,ye>4  4  7c7 ,program trigg]  
,subp>agraph 7,b7 ( section #ajc7;e77#a7
 7#ae ,u4,s4,c4 #fgja note7 is am5d$--  
7#a7 9 ! matt] prec$+ clause 7i7--  7,a7

 by /rik+ a c]tifi$ act & ins]t+ c]tifi$
 acts2 &  7,b7 by /rik+ su* c]tifi$ act 
& ins]t+ su* c]tifi$ acts2  7#b7 9      
clause 7i7 by /rik+ or at ! end2  7#c7 9
 clause 7ii71 by /rik+ ! p]iod at ! end 
& ins]t+ ! foll[+ ?r\gh ! ,program ,ye> 
end+ on ,decemb] #ca1 #bjae2 or2  7#d7  
by add+ at ! end ! foll[+3  7iii7  7,i7 
except z provid$ 9 subclause 7,,ii7--   
7aa7 #bjj1jjj1jjj1 ) respect to su*     
insur$ losses occurr+ 9 ! ,program ,ye> 
beg9n+ on ,janu>y #a1 #bjaf2  7bb7      
#cjj1jjj1jjj1 ) respect to su* insur$   
losses occurr+ 9 ! ,program ,ye> beg9n+ 
on ,janu>y #a1 #bjag2  7cc7             
#djj1jjj1jjj1 ) respect to su* insur$   
losses occurr+ 9 ! ,program ,ye> beg9n+ 
on ,janu>y #a1 #bjah2 &  7dd7           
#ejj1jjj1jjj1 ) respect to su* insur$   
losses occurr+ 9 ! ,program ,ye> beg9n+ 
on ,janu>y #a1 #bjai2 &  7,,ii7 9 ! case
 ( an act ( ,,nbcr t]rorism1            
#ajj1jjj1jjj1 ) respect to su* insur$   
losses occurr+ 9 ! ,program ,ye> beg9n+ 
on ,janu>y #a1 #bjaf1 or any ,program   

,ye> !reaft]4  2 &  7#e7 by add+ aft] & 
bel[ clause 7iii71 z add$ by p>agraph   
7#d7 ( ?is subsection1 ! foll[+3  ,9    
det]m9+ ! aggregate indu/ry insur$      
losses result+ f c]tifi$ acts ( t]rorism
 = purposes ( ?is subp>agraph1 !        
,secret>y %all n consid] any act (      
t]rorism result+1 9 ! aggregate1 9 less 
?an #ej1jjj1jjj 9 insur$ losses4 4  #f4 
,availability ( cov]age ,subsection 7c7 
( section #ajc 7#ae ,u4,s4,c4 #fgja     
note7 is am5d$ to read z foll[s3  7c7   
,m&atory availability  7#a7 ,9 g5]al    
,except z provid$ 9 p>agraph 7#b71 dur+ 
ea* ,program ,ye>1 ea* entity t meets ! 
def9ition ( an insur] "u section #ajb   
%all make available--  7,a7 9 all ( its 
prop]ty & casualty insurance policies1  
cov]age = insur$ losses2 &  7,b7 prop]ty
 & casualty insurance cov]age = insur$  
losses t does n diff] mat]ially f !     
t]ms1 am\nts1 & o!r cov]age limitations 
applicable to losses aris+ f ev5ts o!r  
?an acts ( t]rorism4  7#b7 ,no m&atory  
availability = small insur]s ,!         

,secret>y %all provide1 by regulation & 
9 consultation ) ,/ate insurance        
regulatory au?orities1 t p>agraph 7#a7  
%all n apply = a ,program ,ye> ) respect
 to any small insur] 7z su* t]m is def9$
 9 su* regulations by ! ,secret>y7 t1 at
 ! option ( ! insur]1 makes a reque/ =  
su* inapplicability = su* ,program ,ye> 
to ! appropriate ,/ate insurance        
regulatory au?ority = ! ,/ate 9 :i* su* 
insur] is domicil$ & is det]m9$ by su*  
,/ate insurance regulatory au?ority to  
meet su* requirem5ts = f9ancial h>d%ip  
or f9ancial infeasibility ( provid+     
cov]age = insur$ losses z ! ,secret>y   
%all e/abli% 9 su* regulations4 ,!      
insur] %all provide notice1 9 a mann]   
satisfactory to ! ,/ate insurance       
regulatory au?ority1 in=m+ affect$      
prospective & curr5t policyhold]s :e!r  
su* cov]age is n provid$ by ! insur]4   
,?is p>agraph may n be con/ru$ to       
require any ,/ate insurance regulatory  
au?ority to und]take mak+ det]m9ations  
"u ?is p>agraph4  4  #g4 ,t]rorism loss 

risk-spread+ premiums am\nt  7a7 ,9     
g5]al ,subp>agraph 7,c7 ( section       
#ajc7;e77#g7 7#ae ,u4,s4,c4 #fgja note7 
is am5d$--  7#a7 by /rik+ subp>agraphs  
7,a7 ?r\gh 7,e7 & ins]t+ subp>agraphs   
7,a7 ?r\gh 7,f72 &  7#b7 by /rik+ #acc  
p]c5t & ins]t+ #aej p]c5t4  7b7         
,applicability ,! am5dm5t made by       
subsection 7a7 %all apply to ! ,program 
,ye> = ! ,t]rorism ,insurance ,program  
e/abli%$ by title ,i ( ! ,t]rorism ,risk
 ,insurance ,act ( #bjjb 7#ae ,u4,s4,c4 
#fgja note7 t beg9s on ,janu>y #a1      
#bjaf1 & ,program ,ye>s !reaft]4  #h4   
,increase ( aggregate ret5tion am\nt2   
m&atory rec\pm5t  7a7 ,9 ,g5]al         
,p>agraph 7#f7 ( section #ajc7;e7 7#ae  
,u4,s4,c4 #fgja note7 is am5d$--  7#a7 9
 subp>agraph 7,d77ii71 by /rik+ & at !  
end2  7#b7 9 subp>agraph 7,e7--  7,a7 9 
! matt] prec$+ clause 7i71 by ins]t+    
?r\gh ! ,program ,ye> end+ on ,decemb]  
#ca1 #bjae be=e ! comma2 &  7,b7 9      
clause 7ii71 by /rik+ ! p]iod at ! end &
 ins]t+ 2 &2 &  7#c7 by add+ at ! end ! 

foll[+ new subp>agraph3  7,f7 = !       
,program ,ye> beg9n+ ,janu>y #a1 #bjaf1 
& ea* ,program ,ye> !reaft]1 ! less] (--
  7i7 ! am\nt t is equal to ! sum ( !   
insur] d$uctibles = ! ,program ,ye> =   
all insur]s p>ticipat+ 9 ! ,program2 &  
7ii7 ! aggregate am\nt1 = all insur]s1 (
 insur$ losses dur+ su* ,program ,ye>4  
4  7b7 ,m&atory rec\pm5t  7#a7 ,am\nt2  
tim+ ,p>agraph 7#g7 ( section #ajc7;e7  
7#ae ,u4,s4,c4 #fgja note7 is am5d$--   
7,a7 by /rik+ subp>agraphs 7,a7 & 7,b7 &
 ins]t+ ! foll[+ new subp>agraph3  7,a7 
,m&atory rec\pm5t am\nt ,= purposes (   
?is p>agraph1 ! m&atory rec\pm5t am\nt =
 ea* ( ! p]iods ref]r$ to 9 subp>agraphs
 7,a7 ?r\gh 7,f7 ( p>agraph 7#f7 %all be
 equal to ! less] (--  7i7 ! aggregate  
am\nt1 = all insur]s1 ( insur$ losses   
dur+ su* p]iod t are comp5sat$ by !     
,f$]al ,gov]nm5t pursuant to p>agraph   
7#a72 or  7ii7 ! insurance m>ketplace   
aggregate ret5tion am\nt "u p>agraph    
7#f7 = su* p]iod4  2  7,b7 9 subp>agraph
 7,e77i77,,iii71 by /rik+ aft] ,janu>y  

#a1 #bjab & ins]t+ be=e ,decemb] #ca1   
#bjad2 &  7,c7 by r$esignat+            
subp>agraphs 7,c71 7,d71 7,e7 7z s      
am5d$71 & 7,f7 z subp>agraphs 7,b71     
7,c71 7,d71 & 7,e71 respectively4  7#b7 
,con=m+ am5dm5ts ,section #ajc7;e7 7#ae 
,u4,s4,c4 #fgja note7 is am5d$--  7,a7 9
 p>agraph 7#g77;,d77i71 z s r$esignat$  
by p>agraph 7#a77;,b7 ( ?is subsection1 
by /rik+ subp>agraph 7,c7 & ins]t+      
subp>agraph 7,b72 &  7,b7 9 p>agraph    
7#h7--  7i7 9 subp>agraph 7,c71 by /rik+
 p>agraph 7#g77;,d7 & ins]t+ p>agraph   
7#g77;,c72 &  7ii7 9 subp>agraph        
7,d77ii71 by /rik+ p>agraph 7#g77;,e7 & 
ins]t+ p>agraph 7#g77;,d74  #i4         
,t]rorism loss risk-spread+ premium  7a7
 ,9 g5]al ,section #ajc7;e7 7#ae        
,u4,s4,c4 #fgja note7 is am5d$ by /rik+ 
p>agraph 7#h7 & ins]t+ ! foll[+ new     
p>agraph3  7#h7 ,t]rorism loss          
risk-spread+ premiums  7,a7 ,e/abli%m5t 
,aft] an act ( t]rorism1 ! ,secret>y    
%all1 to ! ext5t provid$ 9 subp>agraph  
7#g77;,c71 & may1 to ! ext5t provid$ 9  

subp>agraph 7#g77;,d71 e/abli% t]rorism 
loss risk-spread+ premiums1 :i* %all be 
impos$ z a policyhold] premium sur*>ge  
on prop]ty & casualty insurance policies
 = all p>ticipat+ insur]s 9 =ce aft] !  
date ( su* e/abli%m5t4  7,b7 ,collection
 ,! ,secret>y %all provide = insur]s to 
collect t]rorism loss risk-spread+      
premiums & remit su* am\nts collect$ to 
! ,secret>y4  7,c7 ,det]m9ation (       
premiums ,9 det]m9+ ! me?od & mann] (   
impos+ t]rorism loss risk-spread+       
premiums1 includ+ ! am\nt ( su*         
premiums1 ! ,secret>y %all--  7i7 impose
 su* t]rorism loss risk-spread+ premiums
 beg9n+ ) su* p]iod ( cov]age dur+ ! ye>
 z ! ,secret>y det]m9es appropriate1 b  
%all comm5ce imposition ( su* premiums n
 lat] ?an #ah mon?s aft] ! occurr5ce ( !
 act ( t]rorism = :i* su* premiums are  
impos$2  7ii7 base any t]rorism loss    
risk-spread+ premium on a p]c5tage ( !  
premium am\nt *>g$ = prop]ty & casualty 
insurance cov]age "u ! policy2 &  7iii7 
take into consid]ation--  7,i7 !        

economic impact on comm]cial c5t]s (    
urban areas1 includ+ ! effect on        
comm]cial r5ts & comm]cial insurance    
premiums1 p>ticul>ly r5ts & premiums    
*>g$ to small bus9esses1 & !            
availability ( lease space & comm]cial  
insurance )9 urban areas2  7,,ii7 ! risk
 factors relat$ to rural areas & small] 
comm]cial c5t]s1 includ+ ! pot5tial     
exposure to loss & ! likely magnitude ( 
su* loss1 z well z any result+          
cross-subsidization t might result2 &   
7,,iii7 ! v>i\s exposures to t]rorism   
risk = diff]5t l9es ( insurance4  7,d7  
,p]c5tage limitation ,a t]rorism loss   
risk-spread+ premium collect$ on a      
discretion>y basis pursuant to p>agraph 
7#g77;,d7 %all n be less ?an1 on an     
annual basis1 ! am\nt equal to #c p]c5t 
( ! premium *>g$ = prop]ty & casualty   
insurance cov]age "u ! policy4  7,e7    
,tim+ ( premiums ,! ,secret>y may adju/ 
! tim+ ( t]rorism loss risk-spread+     
premiums to provide = equival5t         
application ( ! provisions ( ?is title  

to policies t are n bas$ on a cal5d>    
ye>1 or to apply su* provisions on a    
daily1 mon?ly1 or qu>t]ly basis1 z      
appropriate4  4  7b7 ,applicability ,!  
am5dm5t made by subsection 7a7 %all     
apply to ! ,program ,ye> = ! ,t]rorism  
,insurance ,program e/abli%$ by title ,i
 ( ! ,t]rorism ,risk ,insurance ,act (  
#bjjb 7#ae ,u4,s4,c4 #fgja note7 t beg9s
 on ,janu>y #a1 #bjaf1 & ,program ,ye>s 
!reaft]4  #aj4 ,risk-%>+ me*anisms  7a7 
,9 ,g5]al ,section #ajc7;e7 7#ae        
,u4,s4,c4 #fgja note7 is am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#i7   
,risk-%>+ me*anisms  7,a7 ,f9d+2 rule ( 
con/ruction ,! ,congress f9ds t x is    
desirable to enc\rage ! gr[? (          
nongov]nm5tal1 private m>ket re9surance 
capacity = protection aga9/ losses aris+
 f acts ( t]rorism4 ,!re=e1 no?+ 9 ?is  
title %all prohibit insur]s f develop+  
risk-%>+ me*anisms 7includ+ mutual      
re9surance facilities & agreem5ts1 use (
 ! capital m>kets1 & insurance-l9k$     
securities7 to volunt>ily re9sure       

t]rorism losses betwe5 & among !mselves 
t are n subject to reimbursem5t "u ?is  
section4  7,b7 ,e/abli%m5t ( advisory   
committee ,! ,secret>y %all appo9t an   
,advisory ,committee to--  7i7 enc\rage 
! creation & developm5t ( su* risk-%>+  
me*anisms2  7ii7 assi/ ! ,secret>y & be 
available to adm9i/] su* risk-%>+       
me*anisms2 &  7iii7 develop articles (  
incorporation1 bylaws1 & a plan (       
op]ation = any long-t]m re9surance      
facility au?oriz$ or creat$ 9 ! future4 
7,c7 ,memb]%ip ,! ,advisory ,committee  
%all be compos$ ( n9e memb]s :o are     
directors1 (fic]s1 or o!r employees (   
insur]s1 re9sur]s1 or capital m>ket     
p>ticipants t are p>ticipat+ or t desire
 to p>ticipate 9 su* me*anisms1 & :o are
 repres5tative ( ! affect$ sectors ( !  
insurance indu/ry1 includ+ comm]cial    
prop]ty insurance1 comm]cial casualty   
insurance1 re9surance1 & alt]native risk
 transf] indu/ries4  4  7b7             
,applicability ,! am5dm5t made by       
subsection 7a7 %all apply to ! ,program 

,ye> = ! ,t]rorism ,insurance ,program  
e/abli%$ by title ,i ( ! ,t]rorism ,risk
 ,insurance ,act ( #bjjb 7#ae ,u4,s4,c4 
#fgja note7 t beg9s on ,janu>y #a1      
#bjae1 & ,program ,ye>s !reaft]4  #aa4  
,report+ ( t]rorism insurance data      
,section #ajd 7#ae ,u4,s4,c4 #fgja note7
 is am5d$ by add+ at ! end ! foll[+ new 
subsection3  7h7 ,report+ ( t]rorism    
insurance data  7#a7 ,au?ority ,dur+ !  
,program ,ye> beg9n+ on ,janu>y #a1     
#bjaf1 & 9 ea* ,program ,ye> !reaft]1 ! 
,secret>y %all require insur]s          
p>ticipat+ 9 ! ,program to submit to !  
,secret>y su* in=mation reg>d+ insurance
 cov]age = t]rorism losses ( su* insur]s
 z ! ,secret>y consid]s appropriate to  
analyze ! effectiv5ess ( ! ,program1 :i*
 %all include in=mation reg>d+--  7,a7  
l9es ( insurance ) exposure to su*      
losses2  7,b7 premiums e>n$ on su*      
cov]age2  7,c7 geographical location (  
exposures2  7,d7 pric+ ( su* cov]age2   
7,e7 ! take-up rate = su* cov]age2  7,f7
 ! am\nt ( private re9surance = acts (  

t]rorism pur*as$2 &  7,g7 su* o!r matt]s
 z ! ,secret>y consid]s appropriate4    
7#b7 ,reports ,n lat] ?an #f mon?s aft] 
! t]m9ation ( ! ,program ,ye> beg9n+ on 
,janu>y #a1 #bjaf1 & n lat] ?an #f mon?s
 aft] ! t]m9ation ( ea* ,program ,ye>   
!reaft]1 ! ,secret>y %all submit a      
report to ! ,committee on ,f9ancial     
,s]vices ( ! ,h\se ( ,repres5tatives & !
 ,committee on ,bank+1 ,h\s+1 & ,urban  
,affairs ( ! ,s5ate t includes--  7,a7  
an analysis ( ! ov]all effectiv5ess ( ! 
,program2  7,b7 an evaluation ( any     
*anges or tr5ds 9 ! data collect$ "u    
p>agraph 7#a72  7,c7 an evaluation (    
:e!r any aspects ( ! ,program h ! effect
 ( disc\rag+ or imp$+ insur]s f provid+ 
comm]cial prop]ty casualty insurance    
cov]age or cov]age = acts ( t]rorism2   
7,d7 an evaluation ( ! impact ( !       
,program on work]s' comp5sation insur]s2
  7,e7 an evaluation ( ! impact on      
availability & af=dability ( t]rorism   
insurance cov]age & fiscal protection ( 
! taxpay]s ( sep>ate ,f$]al treatm5t "u 

! ,program = nucle>1 biological1        
*emical1 & radiological t]rorism2 &     
7,f7 9 ! case ( ! data report$ 9        
p>agraph 7#a77;,b71 an updat$ e/imate ( 
! total am\nt e>n$ s9ce ! comm5cem5t (  
,program ,ye> #a4  7#c7 ,protection (   
data ,to ! ext5t possible1 ! ,secret>y  
%all contract ) an insurance /ati/ical  
aggregator to collect ! in=mation       
describ$ 9 p>agraph 7#a71 :i* %all keep 
any nonpublic in=mation confid5tial &   
provide x to ! ,secret>y 9 an aggregate 
=m or 9 su* o!r =m or mann] t does n    
p]mit id5tification ( ! insur] submitt+ 
su* in=mation4  7#d7 ,advance           
coord9ation ,be=e collect+ any data or  
in=mation "u p>agraph 7#a7 f an insur]1 
or affiliate ( an insur]1 ! ,secret>y   
%all coord9ate ) ! appropriate ,/ate    
insurance regulatory au?orities or _!   
repres5tatives & any relevant gov]nm5t  
ag5cy or publicly available s\rces to   
det]m9e if ! in=mation to be collect$ is
 available f1 & may be obta9$ 9 a timely
 mann] by1 individually or collectively1

 su* entities4 ,if ! ,secret>y det]m9es 
t su* data or in=mation is available1 & 
may be obta9$ 9 a timely matt]1 f su*   
entities1 ! ,secret>y %all obta9 ! data 
or in=mation f su* entities4 ,if !      
,secret>y det]m9es t su* data or        
in=mation is n s available1 ! ,secret>y 
may collect su* data or in=mation f an  
insur] & affiliates4  7#e7              
,confid5tiality  7,a7 ,ret5tion (       
privilege ,! submission ( any           
non-publicly available data & in=mation 
to ! ,secret>y & ! %>+ ( any            
non-publicly available data ) or by !   
,secret>y among o!r ,f$]al ag5cies1 !   
,/ate insurance regulatory au?orities & 
_! collective ag5ts1 or any o!r entities
 "u ?is subsection %all n con/itute a   
waiv] (1 or o!rwise affect1 any         
privilege aris+ "u ,f$]al or ,/ate law  
7includ+ ! rules ( any ,f$]al or ,/ate  
c\rt7 to :i* ! data or in=mation is     
o!rwise subject4  7,b7 ,cont9u$         
application ( prior confid5tiality      
agreem5ts ,any requirem5t "u ,f$]al or  

,/ate law to ! ext5t o!rwise applicable1
 or any requirem5t pursuant to a writt5 
agreem5t 9 effect betwe5 ! orig9al s\rce
 ( any non-publicly available data or   
in=mation & ! s\rce ( su* data or       
in=mation to ! ,secret>y1 reg>d+ !      
privacy or confid5tiality ( any data or 
in=mation 9 ! possession ( ! s\rce to ! 
,secret>y1 %all cont9ue to apply to su* 
data or in=mation aft] ! data or        
in=mation has be5 provid$ pursuant to   
?is subsection4  7,c7 ,in=mation-%>+    
agreem5t ,any data or in=mation obta9$  
by ! ,secret>y "u ?is subsection may be 
made available to ,/ate insurance       
regulatory au?orities1 individually or  
collectively ?r\gh an in=mation-%>+     
agreem5t t--  7i7 %all comply )         
applicable ,f$]al law2 &  7ii7 %all n   
con/itute a waiv] (1 or o!rwise affect1 
any privilege "u ,f$]al or ,/ate law    
7includ+ any privilege ref]r$ to 9      
subp>agraph 7,a7 & ! rules ( any ,f$]al 
or ,/ate c\rt7 to :i* ! data or         
in=mation is o!rwise subject4  7,d7     

,ag5cy disclosure requirem5ts ,section  
#eeb ( title #e1 ,unit$ ,/ates ,code1   
includ+ any exceptions !reund]1 %all    
apply to any data or in=mation submitt$ 
"u ?is subsection to ! ,secret>y by an  
insur] or affiliate ( an insur]4  4     
#ab4 ,deliv]y ( notices to policyhold]s 
,section #ajc7;b77#b7 7#ae ,u4,s4,c4    
#fgja note7 is am5d$--  7#a7 9          
subp>agraph 7,b71 by /rik+ 1 pur*ase12 &
  7#b7 9 subp>agraph 7,c71 by /rik+ 1   
pur*ase14  #ac4 ,def9ition ( control    
,p>agraph 7#c7 ( section #ajb 7#ae      
,u4,s4,c4 #fgja note7 is am5d$--  7#a7  
by r$esignat+ subp>agraphs 7,a71 7,b71 &
 7,c7 z clauses 7i71 7ii71 & 7iii71     
respectively & realign+ su* clauses1 z s
 r$esignat$1 s z to be ind5t$ six ems f 
! left m>g92  7#b7 9 ! matt] prec$+     
clause 7i7 7z s r$esignat$71 by /rik+   
,an entity has & ins]t+ ! foll[+3  7,a7 
,9 g5]al ,an entity has  2 &  7#c7 by   
add+ at ! end ! foll[+ new subp>agraph3 
7,b7 ,rule ( con/ruction ,an entity1    
includ+ any affiliate !re(1 does n h    

control ov] ano!r entity if1 z ( ! date 
( ! enactm5t ( ! ,,tria ,re=m ,act (    
#bjad1 ! entity is act+ z an            
attorney-9-fact1 z def9$ by ! ,secret>y1
 = ! o!r entity & su* o!r entity is a   
reciprocal insur]1 provid$ t ! entity is
 n1 = reasons o!r ?an ! attorney-9-fact 
relation%ip1 def9$ z hav+ control "u    
subp>agraph 7,a74  4  #ad4 ,annual /udy 
( small insur] m>ket competitiv5ess     
,section #ajh 7#ae ,u4,s4,c4 #fgja note7
 is am5d$ by add+ at ! end ! foll[+ new 
subsection3  7h7 ,/udy ( small insur]   
m>ket competitiv5ess  7#a7 ,9 g5]al ,!  
,secret>y %all conduct an annual /udy ( 
small insur]s p>ticipat+ 9 ! ,program1 &
 id5tify any competitive *all5ges small 
insur]s face 9 ! t]rorism risk insurance
 m>ketplace1 includ+--  7,a7 *anges to !
 m>ket %>e1 premium volume1 &           
policyhold] surplus ( small insur]s     
relative to l>ge insur]s2  7,b7 h[ !    
prop]ty & casualty insurance m>ket =    
t]rorism risk diff]s betwe5 small & l>ge
 insur]s1 & :e!r su* a diff]5ce exi/s )9

 o!r p]ils2  7,c7 ! impact ( !          
,program's m&atory availability         
requirem5t "u section #ajc7;c7 & !      
volunt>y opt-out = small insur]s2  7,d7 
! effect ( increas+ ! trigg] am\nt = !  
,program "u section                     
#ajc7;e77#a77;,b77iii77,i7 on small     
insur]s2  7,e7 ! availability & co/ (   
private re9surance = small insur]s2 &   
7,f7 ! impact t ,/ate work]s comp5sation
 laws h on small insur]s1 p>ticul>ly !  
impact ( m&atory1 non-excludable        
p>ticipation & unlimit$ f9ancial        
liability4  7#b7 ,tim+ & report ,!      
,secret>y %all complete ! fir/ /udy "u  
p>agraph 7#a7 & submit a report to !    
,congress sett+ =? ! f9d+s & conclusions
 ( ! /udy n lat] ?an ,june #cj1 #bjaf1 &
 %all complete an annual /udy "u        
p>agraph 7#a7 & submit a report reg>d+  
su* /udy to ! ,congress by ,june #a     
annually !reaft]4  4  #ae4 ,,cbo & ,,omb
 /udies reg>d+ budget+ = co/s ( ,f$]al  
insurance programs ,n lat] ?an !        
expiration ( ! #ab-mon? p]iod beg9n+ on 

! date ( ! enactm5t ( ?is ,act1 !       
,director ( ! ,congressional ,budget    
,(fice & ! ,director ( ! ,(fice (       
,managem5t & ,budget %all ea*--  7#a7   
conduct a /udy to det]m9e ! feasibility 
( apply+ accrual acc\nt+ concepts to    
budget+ = ! co/s ( ! ,t]rorism ,risk    
,insurance ,program & = ! co/s ( ! o!r  
,f$]al insurance programs2 &  7#b7      
submit a report reg>d+ su* /udy to !    
,committees on ! ,budget ( ! ,h\se (    
,repres5tatives & ! ,s5ate1 :i* %all    
include a recomm5dation specifically    
address+ ! feasibility ( apply+ fair    
value concepts to budget+ = ! co/s (    
,f$]al insurance programs1 includ+ !    
,t]rorism ,risk ,insurance ,program4    
#af4 ,,gao /udy on upfront premiums &   
capital res]ve fund  7a7 ,/udy ,n lat]  
?an #b ye>s aft] ! date ( ! enactm5t (  
?is ,act1 ! ,comptroll] ,g5]al ( !      
,unit$ ,/ates %all complete a /udy on ! 
viability ( ! ,f$]al ,gov]nm5t--  7#a7  
assess+ & collect+ upfront premiums on  
insur]s t p>ticipate 9 ! ,t]rorism ,risk

 ,insurance ,program e/abli%$ "u !      
,t]rorism ,risk ,insurance ,act ( #bjjb 
7#ae ,u4,s4,c4 #fgja note7 79 ?is       
section ref]r$ to z ! ,program71 :i*    
%all include a comp>ison ( practices 9  
int]national m>kets to assess & collect 
premiums ei!r be=e or aft] t]rorism     
losses are incurr$2 &  7#b7 creat+ a    
capital res]ve fund "u ! ,program &     
requir+ insur]s p>ticipat+ 9 ! ,program 
to d$icate capital specifically =       
t]rorism losses be=e su* losses are     
incurr$1 :i* %all include a comp>ison ( 
practices 9 int]national m>kets to      
e/abli% res]ve funds4  7b7 ,requir$     
cont5t ,! /udy requir$ "u subsection 7a7
 %all exam9e1 b %all n be limit$ to1 !  
foll[+ issues3  7#a7 ,upfront premiums  
,) respect to upfront premiums describ$ 
9 subsection 7a77#a7--  7,a7 h[ ! ,f$]al
 ,gov]nm5t c\ld det]m9e ! price ( su*   
upfront premiums on insur]s t p>ticipate
 9 ! ,program2  7,b7 h[ ! ,f$]al        
,gov]nm5t c\ld collect su* upfront      
premiums2  7,c7 h[ ! ,f$]al ,gov]nm5t   

c\ld ensure t su* upfront premiums are n
 sp5t = purposes o!r ?an satisfy+ claims
 ?r\gh ! ,program2  7,d7 h[ ! assessm5t 
& collection ( su* upfront premiums c\ld
 affect take-up rates = t]rorism risk   
cov]age 9 diff]5t regions & indu/ries2  
7,e7 ! effect ( collect+ su* upfront    
premiums on ! private m>ket = t]rorism  
risk re9surance2 &  7,f7 ! size ( !     
,f$]al ,gov]nm5t subsidy insur]s        
curr5tly receive ?r\gh _! p>ticipation 9
 ! ,program4  7#b7 ,capital res]ve fund 
,) respect to ! capital res]ve fund     
describ$ 9 subsection 7a77#b7--  7,a7 h[
 ! creation ( a capital res]ve fund w\ld
 affect ! ,f$]al ,gov]nm5t's fiscal     
exposure "u ! ,t]rorism ,risk ,insurance
 ,program & ! ability ( ! ,program to   
meet its /atutory purposes2  7,b7 h[ a  
capital res]ve fund w\ld impact insur]s 
& re9sur]s1 includ+ liquidity1 insurance
 pric+1 & capacity to provide t]rorism  
risk cov]age2  7,c7 ! feasibility (     
segregat+ funds attributable to t]rorism
 risk f funds attributable to o!r       

insurance l9es2  7,d7 h[ a capital      
res]ve fund w\ld be view$ & treat$ "u   
curr5t ,f9ancial ,acc\nt+ ,/&>ds ,bo>d  
acc\nt+ rules & ! tax laws2 &  7,e7 h[ a
 capital res]ve fund w\ld affect !      
,/ates' ability to regulate insur]s     
p>ticipat+ 9 ! ,program4  7#c7          
,int]national practices ,) respect to   
int]national m>kets ref]r$ to 9         
p>agraphs 7#a7 & 7#b7 ( subsection 7,a71
 h[ o!r c\ntries1 if any--  7,a7 h      
e/abli%$ t]rorism insurance /ructures2  
7,b7 *>ge premiums or o!rwise collect   
funds to pay = ! co/s ( t]rorism        
insurance /ructures1 includ+ risk &     
adm9i/rative co/s2 &  7,c7 h e/abli%$   
capital res]ve funds to pay = ! co/s (  
t]rorism insurance /ructures4  7#d7     
,duration ,) respect to ! capital res]ve
 fund describ$ 9 subsection 7a77#b71 h[ 
! duration ( ! ,program w\ld affect !   
viability ( su* capital res]ve fund4    
7c7 ,report ,^u completion ( ! /udy     
requir$ "u subsection 7a71 ! ,comptroll]
 ,g5]al %all submit a report on !       

results ( su* /udy to ! ,committee on   
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives4   
7d7 ,public availability ,! /udy &      
report requir$ "u ?is section %all be   
made available to ! public 9 electronic 
=m & %all be publi%$ on ! website ( !   
,gov]nm5t ,acc\ntability ,(fice4