HR 4299 EHRFSCommentsClose CommentsPermalink

To extend the Terrorism Insurance Program of the Department of the Treasury, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Terrorism Risk Insurance Program Reauthorization Act of 2007'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Definition of act of terrorism.CommentsClose CommentsPermalink





Sec. 3. Reauthorization of the program.CommentsClose CommentsPermalink





Sec. 4. Annual liability cap.CommentsClose CommentsPermalink





Sec. 5. Enhanced reports to Congress.CommentsClose CommentsPermalink





Sec. 6. Coverage of group life insurance.CommentsClose CommentsPermalink





Sec. 7. Large event reset.CommentsClose CommentsPermalink





Sec. 8. Availability of life insurance without regard to lawful foreign travel.CommentsClose CommentsPermalink





Sec. 9. Program trigger.CommentsClose CommentsPermalink





Sec. 10. Applicability.CommentsClose CommentsPermalink

SEC. 2. DEFINITION OF ACT OF TERRORISM.

Section 102(1)(A)(iv) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking `acting on behalf of any foreign person or foreign interest'.CommentsClose CommentsPermalink

SEC. 3. REAUTHORIZATION OF THE PROGRAM.

(a) Termination Date- Section 108(a) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking `2007' and inserting `2014'.CommentsClose CommentsPermalink





(b) Additional Program Years- Section 102(11) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(G) ADDITIONAL PROGRAM YEARS- Except when used as provided in subparagraphs (B) through (F), the term `Program Year' means, as the context requires, any of Program Year 1, Program Year 2, Program Year 3, Program Year 4, Program Year 5, or any of calendar years 2008 through 2014.'.CommentsClose CommentsPermalink





(c) Conforming Amendments- The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) in section 102(7)(F)--CommentsClose CommentsPermalink





(A) by inserting `and each Program Year thereafter' before `, the value'; andCommentsClose CommentsPermalink





(B) by striking `preceding Program Year 5' and inserting `preceding that Program Year';CommentsClose CommentsPermalink





(2) in section 103(e)(1)(A), by inserting `and each Program Year thereafter' after `Year 5';CommentsClose CommentsPermalink





(3) in section 103(e)(1)(B)(ii), by inserting before the period at the end `and any Program Year thereafter';CommentsClose CommentsPermalink





(4) in section 103(e)(2)(A), by striking `of Program Years 2 through 5' and inserting `Program Year thereafter';CommentsClose CommentsPermalink





(5) in section 103(e)(3), by striking `of Program Years 2 through 5,' and inserting `other Program Year'; andCommentsClose CommentsPermalink





(6) in section 103(e)(6)(E), by inserting `and any Program Year thereafter' after `Year 5'.CommentsClose CommentsPermalink

SEC. 4. ANNUAL LIABILITY CAP.

(a) In General- Section 103(e)(2) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (A)--CommentsClose CommentsPermalink





(A) by striking `(until such time as the Congress may act otherwise with respect to such losses)'; andCommentsClose CommentsPermalink





(B) in clause (ii), by striking `that amount' and inserting `the amount of such losses'; andCommentsClose CommentsPermalink





(2) in subparagraph (B), by inserting before the period at the end `, except that, notwithstanding paragraph (1) or any other provision of Federal or State law, no insurer may be required to make any payment for insured losses in excess of its deductible under section 102(7) combined with its share of insured losses under paragraph (1)(A) of this subsection'.CommentsClose CommentsPermalink





(b) Notice to Congress- Section 103(e)(3) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) by adding at the end the following: `The Secretary shall provide an initial notice to Congress not later than 15 days after the date of an act of terrorism, stating whether the Secretary estimates that aggregate insured losses will exceed $100,000,000,000.'; andCommentsClose CommentsPermalink





(2) by striking `and the Congress shall' and all that follows through the end of the paragraph and inserting a period.CommentsClose CommentsPermalink





(c) Regulations for Pro Rata Payments; Report to Congress- Section 103(e)(2)(B) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) by striking `For purposes' and inserting the following:CommentsClose CommentsPermalink





`(i) IN GENERAL- For purposes'; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(ii) REGULATIONS- Not later than 240 days after the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2007, the Secretary shall issue final regulations for determining the pro rata share of insured losses under the Program when insured losses exceed $100,000,000,000, in accordance with clause (i).CommentsClose CommentsPermalink





`(iii) REPORT TO CONGRESS- Not later than 120 days after the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2007, the Secretary shall provide a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives describing the process to be used by the Secretary for determining the allocation of pro rata payments for insured losses under the Program when such losses exceed $100,000,000,000.'.CommentsClose CommentsPermalink





(d) Disclosure- Section 103(b) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; andCommentsClose CommentsPermalink





(2) by inserting after paragraph (2) the following:CommentsClose CommentsPermalink





`(3) in the case of any policy that is issued after the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2007, the insurer provides clear and conspicuous disclosure to the policyholder of the existence of the $100,000,000,000 cap under subsection (e)(2), at the time of offer, purchase, and renewal of the policy;'.CommentsClose CommentsPermalink





(e) Surcharges- Section 103(e) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) in paragraph (7)--CommentsClose CommentsPermalink





(A) in subparagraph (C), by inserting `133 percent of' before `any mandatory recoupment'; andCommentsClose CommentsPermalink





(B) by adding at the end the following:CommentsClose CommentsPermalink





`(E) TIMING OF MANDATORY RECOUPMENT-CommentsClose CommentsPermalink





`(i) IN GENERAL- If the Secretary is required to collect terrorism loss risk-spreading premiums under subparagraph (C)--CommentsClose CommentsPermalink





`(I) for any act of terrorism that occurs on or before December 31, 2010, the Secretary shall collect all required premiums by September 30, 2012;CommentsClose CommentsPermalink





`(II) for any act of terrorism that occurs between January 1 and December 31, 2011, the Secretary shall collect 35 percent of any required premiums by September 30, 2012, and the remainder by September 30, 2017; andCommentsClose CommentsPermalink





`(III) for any act of terrorism that occurs on or after January 1, 2012, the Secretary shall collect all required premiums by September 30, 2017.CommentsClose CommentsPermalink





`(ii) REGULATIONS REQUIRED- Not later than 180 days after the date of enactment of this subparagraph, the Secretary shall issue regulations describing the procedures to be used for collecting the required premiums in the time periods referred to in clause (i).CommentsClose CommentsPermalink





`(F) NOTICE OF ESTIMATED LOSSES- Not later than 90 days after the date of an act of terrorism, the Secretary shall publish an estimate of aggregate insured losses, which shall be used as the basis for determining whether mandatory recoupment will be required under this paragraph. Such estimate shall be updated as appropriate, and at least annually.'; andCommentsClose CommentsPermalink





(2) in paragraph (8)--CommentsClose CommentsPermalink





(A) in subparagraph (C)--CommentsClose CommentsPermalink





(i) by striking `(including any additional amount included in such premium' and inserting `collected'; andCommentsClose CommentsPermalink





(ii) by striking `(D))' and inserting `(D)'; andCommentsClose CommentsPermalink





(B) in subparagraph (D)(ii), by inserting before the period at the end `, in accordance with the timing requirements of paragraph (7)(E)'.CommentsClose CommentsPermalink

SEC. 5. ENHANCED REPORTS TO CONGRESS.

(a) Study and Report on Insurance for Nuclear, Biological, Chemical, and Radiological Terrorist Events- Section 108 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(f) Insurance for Nuclear, Biological, Chemical, and Radiological Terrorist Events-CommentsClose CommentsPermalink





`(1) STUDY- The Comptroller General of the United States shall examine--CommentsClose CommentsPermalink





`(A) the availability and affordability of insurance coverage for losses caused by terrorist attacks involving nuclear, biological, chemical, or radiological materials;CommentsClose CommentsPermalink





`(B) the outlook for such coverage in the future; andCommentsClose CommentsPermalink





`(C) the capacity of private insurers and State workers compensation funds to manage risk associated with nuclear, biological, chemical, and radiological terrorist events.CommentsClose CommentsPermalink





`(2) REPORT- Not later than 1 year after the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2007, the Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report containing a detailed statement of the findings under paragraph (1), and recommendations for any legislative, regulatory, administrative, or other actions at the Federal, State, or local levels that the Comptroller General considers appropriate to expand the availability and affordability of insurance for nuclear, biological, chemical, or radiological terrorist events.'.CommentsClose CommentsPermalink





(b) Study and Report on Availability and Affordability of Terrorism Insurance in Specific Markets- Section 108 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(g) Availability and Affordability of Terrorism Insurance in Specific Markets-CommentsClose CommentsPermalink





`(1) STUDY- The Comptroller General of the United States shall conduct a study to determine whether there are specific markets in the United States where there are unique capacity constraints on the amount of terrorism risk insurance available.CommentsClose CommentsPermalink





`(2) ELEMENTS OF STUDY- The study required by paragraph (1) shall contain--CommentsClose CommentsPermalink





`(A) an analysis of both insurance and reinsurance capacity in specific markets, including pricing and coverage limits in existing policies;CommentsClose CommentsPermalink





`(B) an assessment of the factors contributing to any capacity constraints that are identified; andCommentsClose CommentsPermalink





`(C) recommendations for addressing those capacity constraints.CommentsClose CommentsPermalink





`(3) REPORT- Not later than 180 days after the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2007, the Comptroller General shall submit a report on the study required by paragraph (1) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.'.CommentsClose CommentsPermalink





(c) Ongoing Reports- Section 108(e) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)--CommentsClose CommentsPermalink





(A) by inserting `ongoing' before `analysis'; andCommentsClose CommentsPermalink





(B) by striking `, including' and all that follows through the end of the paragraph, and inserting a period; andCommentsClose CommentsPermalink





(2) in paragraph (2)--CommentsClose CommentsPermalink





(A) by inserting `and thereafter in 2010 and 2013,' after `2006,'; andCommentsClose CommentsPermalink





(B) by striking `subsection (a)' and inserting `paragraph (1)'.CommentsClose CommentsPermalink

SEC. 6. COVERAGE OF GROUP LIFE INSURANCE.

(a) Findings and Purpose- Section 101 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) in paragraph (5), by striking `and' at the end;CommentsClose CommentsPermalink





(B) by redesignating paragraph (6) as paragraph (8); andCommentsClose CommentsPermalink





(C) by inserting after paragraph (5) the following new paragraphs:CommentsClose CommentsPermalink





`(6) 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;CommentsClose CommentsPermalink





`(7) 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 terrorism risks while most catastrophic reinsurance does exclude such risks, and because a large-scale loss of life would fall outside of actuarial expectations of death; and'; andCommentsClose CommentsPermalink





(2) in subsection (b)(1), by inserting `and group life insurance' after `property and casualty insurance'.CommentsClose CommentsPermalink





(b) Definitions- Section 102 of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note), as amended by the preceding provisions of this Act, is further amended--CommentsClose CommentsPermalink





(1) in paragraph (1)(B)(ii), by inserting `and group life insurance' before `losses';CommentsClose CommentsPermalink





(2) in paragraph (5), in the matter preceding subparagraph (A)--CommentsClose CommentsPermalink





(A) by inserting `, or group life insurance to the extent of the amount at risk,' after `property and casualty insurance';CommentsClose CommentsPermalink





(B) by inserting a comma after `insurer'; andCommentsClose CommentsPermalink





(C) by adding after and below subparagraph (B) the following:CommentsClose CommentsPermalink





`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).';CommentsClose CommentsPermalink





(3) in paragraph (6)--CommentsClose CommentsPermalink





(A) in subparagraph (A)(i), by inserting `, or group life insurance,' after `excess insurance'; andCommentsClose CommentsPermalink





(B) in subparagraph (B), by inserting `or, in the case of group life insurance, that receives direct premiums,' after `insurance coverage,';CommentsClose CommentsPermalink





(4) in paragraph (7)--CommentsClose CommentsPermalink





(A) in subparagraph (F)--CommentsClose CommentsPermalink





(i) by striking the first comma and inserting `(i) with respect to property and casualty insurance,'; andCommentsClose CommentsPermalink





(ii) by inserting before the semicolon the following: `(ii) with respect to group life insurance, the value of an insurer's amount at risk for a covered line of insurance over the calendar year immediately preceding such Program Year, multiplied by 0.0351 percent';CommentsClose CommentsPermalink





(B) in subparagraph (G)--CommentsClose CommentsPermalink





(i) by inserting `with respect to property and casualty insurance, and such portion of the amounts at risk with respect to group life insurance,' after `such portion of the direct earned premiums'; andCommentsClose CommentsPermalink





(ii) by inserting `and amounts at risk' after `such direct earned premiums';CommentsClose CommentsPermalink





(5) by redesignating paragraph (16) as paragraph (18); andCommentsClose CommentsPermalink





(6) by inserting after paragraph (15) the following new paragraphs:CommentsClose CommentsPermalink





`(16) 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.CommentsClose CommentsPermalink





`(17) 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 (5).'.CommentsClose CommentsPermalink





(c) Mandatory Availability- Section 103(c) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking `During each Program Year' and all that follows through `property and casualty insurance' in paragraph (2) and inserting the following:CommentsClose CommentsPermalink





`(1) AVAILABILITY OF COVERAGE FOR INSURED LOSSES- During each Program Year, each entity that meets the definition of an insurer under section 102 shall make available, in all of its insurance policies for property and casualty insurance and in all of its insurance policies for group life insurance,'.CommentsClose CommentsPermalink





(d) Federal Share of Compensation- Section 103(e)(1) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(D) LIMITATION ON COMPENSATION FOR GROUP LIFE INSURANCE- Notwithstanding any other provision of this Act, the Federal share of compensation under the Program paid 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 Program Year exceed $1,000,000.'.CommentsClose CommentsPermalink





(e) Separate Retention Pool- Section 103(e)(6)(E) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking clauses (i) and (ii) and inserting the following new clauses:CommentsClose CommentsPermalink





`(i) for property and casualty insurance, the lesser of--CommentsClose CommentsPermalink





`(I) $27,500,000,000; andCommentsClose CommentsPermalink





`(II) the aggregate amount, for all such insurance, of insured losses during such Program Year; andCommentsClose CommentsPermalink





`(ii) for group life insurance, the lesser of--CommentsClose CommentsPermalink





`(I) $5,000,000,000; andCommentsClose CommentsPermalink





`(II) the aggregate amount, for all such insurance, of insured losses during such Program Year.'.CommentsClose CommentsPermalink





(f) Separate Recoupment- Section 103(e)(7) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note), as amended by the preceding provisions of this Act, is further amended--CommentsClose CommentsPermalink





(1) in subparagraph (A)--CommentsClose CommentsPermalink





(A) in clause (i), by inserting `applicable' before `insurance'; andCommentsClose CommentsPermalink





(B) in clause (ii), by striking `all insurers' and inserting `all applicable insurers (pursuant to subparagraph (G))';CommentsClose CommentsPermalink





(2) in subparagraph (B)--CommentsClose CommentsPermalink





(A) in the heading, by inserting `APPLICABLE' before `INSURANCE'; andCommentsClose CommentsPermalink





(B) by inserting `applicable' before `insurance'; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(G) SEPARATE RECOUPMENT- `The Secretary shall provide that--CommentsClose CommentsPermalink





`(i) any recoupment under this paragraph of amounts paid for Federal financial assistance for insured losses for property and casualty insurance shall be applied to property and casualty insurance policies; andCommentsClose CommentsPermalink





`(ii) any recoupment under this paragraph of amounts paid for Federal financial assistance for insured losses for group life insurance shall be applied to group life insurance policies.'.CommentsClose CommentsPermalink





(g) Policy Surcharge for Terrorism Loss Risk-Spreading Premiums- Section 103(e)(8) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (A)--CommentsClose CommentsPermalink





(A) in the matter preceding clause (i), by striking `Any' and inserting `Subject to paragraph (7)(G), any';CommentsClose CommentsPermalink





(B) in clause (i), by inserting `and group life insurance policies' after `policies'; andCommentsClose CommentsPermalink





(C) by striking clause (iii) and inserting the following new clause:CommentsClose CommentsPermalink





`(iii) be based on--CommentsClose CommentsPermalink





`(I) a percentage of the premium amount charged for property and casualty insurance coverage under the policy; andCommentsClose CommentsPermalink





`(II) a percentage of the amount at risk for group life insurance coverage under the policy.'; andCommentsClose CommentsPermalink





(2) in subparagraph (C)--CommentsClose CommentsPermalink





(A) by inserting `with respect to property and casualty insurance,' after `annual basis,'; andCommentsClose CommentsPermalink





(B) by inserting before the period at the end the following: `and, with respect to group life insurance, the amount equal to 0.0053 percent of the amount at risk for covered lines under the policy'.CommentsClose CommentsPermalink

SEC. 7. LARGE EVENT RESET.

The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended--CommentsClose CommentsPermalink





(1) in section 102(7)--CommentsClose CommentsPermalink





(A) in subparagraph (F), by striking `and' at the end;CommentsClose CommentsPermalink





(B) in subparagraph (G), by striking the period at the end and inserting `; and'; andCommentsClose CommentsPermalink





(C) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(H) notwithstanding subparagraph (F)(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--CommentsClose CommentsPermalink





`(i) for the Program Year consisting of calendar year 2008 shall be 5 percent; andCommentsClose CommentsPermalink





`(ii) for each Program Year thereafter, shall be 50 basis points greater than the percentage applicable to the preceding Program Year, except that if an act of terrorism occurs during any such Program Year that results in aggregate industry insured losses exceeding $1,000,000,000, the percentage for the succeeding Program Year shall be 5 percent and the increase under this clause shall apply to Program Years thereafter;CommentsClose CommentsPermalink





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 (F)(i) shall apply.'; andCommentsClose CommentsPermalink





(2) in section 103(e)(1)(B)--CommentsClose CommentsPermalink





(A) in clause (ii), by striking the period at the end and inserting a semicolon; andCommentsClose CommentsPermalink





(B) by adding after and below clause (ii) the following:CommentsClose CommentsPermalink





`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).'.CommentsClose CommentsPermalink

SEC. 8. AVAILABILITY OF LIFE INSURANCE WITHOUT REGARD TO LAWFUL FOREIGN TRAVEL.

Section 103(c) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(2) 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 and any other entity that issues insurance contracts that provide life insurance coverage shall make available, in all of its life insurance policies issued after the date of the enactment of the Terrorism Risk Insurance Program Reauthorization 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--CommentsClose CommentsPermalink





`(A) such declination is based on, or such limitation applies only with respect to, travel to a foreign destination--CommentsClose CommentsPermalink





`(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;CommentsClose CommentsPermalink





`(ii) in which there is an ongoing military conflict involving the armed forces of a sovereign nation other than the foreign destination to which the insured person is traveling; orCommentsClose CommentsPermalink





`(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; andCommentsClose CommentsPermalink





`(II) with respect to which the insurer has made a good-faith determination that--CommentsClose CommentsPermalink





`(aa) a serious fraudulent situation exists which is ongoing; andCommentsClose CommentsPermalink





`(bb) the credibility of information by which the insurer can verify the death of the insured person is substantially compromised; andCommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink

SEC. 9. PROGRAM TRIGGER.

Section 103(e)(1)(B)(ii) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended by striking `$100,000,000' and inserting `$50,000,000'.CommentsClose CommentsPermalink

SEC. 10. 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.CommentsClose CommentsPermalink

Passed the House of Representatives December 12, 2007.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.