Terrorism Risk Insurance Legislation in the
114th Congress: Issue Summary and Side-by-
Side Analysis
Baird Webel
Specialist in Financial Economics
January 7, 2015
Congressional Research Service
7-5700
www.crs.gov
R43849

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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

Summary
Prior to the September 11, 2001, terrorist attacks, insurance covering terrorism losses was
normally included in commercial insurance policies without additional cost to the policyholders.
Following the attacks, this ceased to be the case as insurers and reinsurers pulled back from
offering terrorism coverage. Some feared that a lack of insurance against terrorism loss would
have a wide economic impact, particularly because insurance coverage can be a significant factor
in lending decisions.
Congress responded to the disruption in the insurance market by passing the Terrorism Risk
Insurance Act of 2002 (TRIA; P.L. 107-297). TRIA created a temporary program, expiring at the
end of 2005, to calm the insurance markets through a government reinsurance program sharing in
terrorism losses. This program was intended to give the industry time to gather the data and create
the structures and capacity necessary for private insurance to cover terrorism risk. TRIA did not
require premiums to be paid for the government coverage. Instead, it required private insurers to
offer commercial insurance for terrorism risk, with the government then recouping some or all
federal payments under the act in the years following government coverage of insurer losses.
Under TRIA, terrorism insurance became widely available and largely affordable and the
insurance industry greatly expanded its financial capacity. There has been, however, little
apparent success in developing a longer-term private solution, and fears have persisted about the
economic consequences if terrorism insurance were not available. Congress passed two
extensions to the program, one in 2005 (P.L. 109-144) and one in 2007 (P.L. 110-160). The 2005
extension primarily focused on reducing the government’s up-front financial exposure under the
act, whereas the 2007 extension left most of the up-front aspect of the TRIA program unchanged
but accelerated the post-event recoupment provisions. The 2007 legislation also included the only
expansion of the TRIA program since initial enactment; it extended the program to cover any acts
of terrorism, as opposed to only foreign acts of terrorism.
In the 113th Congress, both the House and the Senate passed legislation that would have extended
TRIA, but differences between the bills prevented enactment. The 113th Congress adjourned
without extending the program. Thus, per P.L. 110-160, the TRIA program expired at the end of
2014. Although insurance industry capacity has increased since 2002, many still see terrorism as
essentially uninsurable. Without TRIA, the insurance industry has indicated that terrorism
insurance will again become unavailable or unaffordable. Fears are again being expressed that a
lack of terrorism insurance may slow down other sectors of the economy. In the 114th Congress,
the House took up extension legislation, H.R. 26, and passed it January 7, 2015, on a vote of 416-
5 with one Member voting present. H.R. 26 would extend the program six years and reduce the
federal government’s exposure to terrorism losses.
This report briefly outlines the issues involved with terrorism insurance, summarizes extension
legislation, and includes a side-by-side comparison of TRIA law and the bills introduced in the
114th and 113th Congresses. For additional information, please see CRS Report R42716, Terrorism
Risk Insurance: Issue Analysis and Overview of Current Program, and CRS Report R43619,
Terrorism Risk Insurance Legislation in the 113th Congress: Issue Summary and Side-by-Side
Analysis, both by Baird Webel.

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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

Contents
Background ...................................................................................................................................... 1
Legislation in the 114th Congress ..................................................................................................... 2
Terrorism Risk Insurance Program Reauthorization Act of 2015 (H.R. 26) ............................. 2

Tables
Table 1. Terrorism Risk Insurance Side by Side: TRIA Statute and 114th
Congress Legislation .................................................................................................................... 4
Table A-1. Terrorism Risk Insurance Side by Side: TRIA Statute and 113th Congress
Legislation .................................................................................................................................... 7

Appendixes
Appendix. TRIA Statute and 113th Congress Legislation ................................................................ 7

Contacts
Author Contact Information........................................................................................................... 15

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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

Background
Prior to the September 11, 2001, terrorist attacks, insurance covering terrorism losses was
normally included in general insurance policies without additional cost to the policyholders.
Following the attacks, both primary insurers and reinsurers pulled back from offering terrorism
coverage. Because insurance is required for a variety of economic transactions, particularly
borrowing for commercial development, many feared that a lack of insurance against terrorism
loss would have a wider economic impact.1
Congress responded to the disruption in the insurance market by passing the Terrorism Risk
Insurance Act of 2002 (TRIA).2 TRIA created a temporary, three-year terrorism insurance
program to calm the insurance markets through a government reinsurance backstop sharing in
terrorism losses. The idea was to give the private industry time to gather the data and create the
structures and capacity necessary for private insurance to cover terrorism risk. TRIA requires
insurers to offer terrorism coverage but does not require commercial policyholders to purchase
the coverage. Congress extended the program in 20053 and 2007.4 In 2005, the extension
legislation focused on reducing the government’s exposure from TRIA by increasing the
minimum covered event size, raising the insurer deductible, reducing the government share of
losses, and increasing the post-event mandatory recoupment. In 2007, the primary change was to
accelerate the after-the-fact recoupment. Although the prospective government share of losses has
been reduced over time, the 2007 reauthorization also expanded the program to cover losses from
acts of domestic terrorism. Both the House and the Senate passed different TRIA extension bills
in the 113th Congress, but final legislation was not enacted. Thus, the TRIA program expired at
the end of 2014, as provided for in the 2007 extension.
The initial thresholds of the program when it expired were as follows:
1. A terrorist act must have caused $5 million in insured losses to be certified for
TRIA coverage.
2. The aggregate insured losses from a certified act of terrorism must have been
$100 million in a year for government coverage to begin.
3. An individual insurer must have met a deductible of 20% of its annual premiums
for government coverage to begin.
Once these thresholds were met, the government would have covered 85% of insured losses due
to terrorism, with the private insurers retaining 15% of the losses. The government did not charge
premiums for this coverage. Instead, if the insured losses were under $27.5 billion, the Secretary
of the Treasury was required to recoup 133% of government outlays through a surcharge on
commercial property/casualty insurance policies. If insured losses rose above $27.5 billion, the
Secretary was required to recoup a reduced amount of the outlays. At some high insured loss
level, which depended on the exact distribution of losses, the Secretary no longer was required to

1 See, for example, “Congress Warns of Economic Drag,” insure.com, February 28, 2002, available at
http://www.insure.com/business-insurance/economic-drag.html.
2 P.L. 107-297, codified at 15 U.S.C. §6701 note.
3 P.L. 109-144.
4 P.L. 110-160.
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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

recoup outlays but retained the discretionary authority to do so. Under the law when it expired, all
mandatory recoupment was required to be completed by the end of FY2017.
Since TRIA’s passage, private industry’s willingness and ability to cover terrorism risk have
increased. According to industry surveys, prices for terrorism coverage have generally trended
downward and approximately 60% of commercial policyholders have purchased coverage over
the past few years.5 The price drops and coverage increases, however, occurred under the
umbrella of TRIA coverage, and it is unclear how the insurance market will react to the expiration
of the federal program.
Legislation in the 114th Congress
Terrorism Risk Insurance Program Reauthorization Act of 2015
(H.R. 26)
Representative Randy Neugebauer introduced H.R. 26 on January 6, 2015, and the House passed
the bill by a vote of 416-5 with one Member voting present on January 7, 2015. The language of
H.R. 26 is identical aside from technical corrections to that of the amended version of the 113th
Congress bill, S. 2244, which passed the House on December 10, 2014. H.R. 26 would
• extend the program six years, until the end of 2020;
• decrease the federal loss sharing gradually from 85% to 80%;
• increase the program trigger by $20 million per year until it reaches $200 million
from the current $100 million;
• increase the insurance marketplace aggregate retention amount by $2 billion per
year until it reaches $37.5 billion from the current $27.5 billion. After it reaches
$37.5 billion, the amount would be set by the Secretary of the Treasury to equal
the annual average of the aggregate sum of insurer deductibles for the previous
three years;
• extend the various dates for mandatory recoupment by seven years;
• change the mandatory recoupment provisions to require that 140% of the federal
payments be recouped;
• require the Treasury to study the certification process and issue final rules
governing the process, including a timeline;
• require the Treasury to collect additional data on the terrorism insurance market
and include that data in an annual report; and
• require a Government Accountability Office (GAO) study on the possible effects
of instituting insurer premiums for TRIA coverage and requiring capital reserve
funds for terrorism.

5 See, for example, Marsh, Inc. 2014 Terrorism Risk Insurance Report, April 2014.
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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

In addition to the TRIA provisions, this bill also includes a Title II relating to insurance agent
licensing,6 a section relating to the makeup of the Federal Reserve Board of Governors,7 and a
Title III amending statutory provisions originating in the 2010 Dodd-Frank Wall Street Reform
and Consumer Protection Act8 relating to derivatives and margin requirements for end users.9
Similar provisions to Title II and Title III passed the House in the 113th Congress.
Table 1 below presents a side-by-side analysis of the TRIA law as it existed upon expiration and
the 114th Congress TRIA extension legislation. A side-by-side comparison of legislation in the
113th Congress can be found in the Appendix.

6 For more information, see CRS Report R43095, Insurance Agent Licensing: Overview and Background on Federal
NARAB Legislation, by Baird Webel.
7 For the current makeup of the Federal Reserve Board of Governors, see CRS Report IF10014, Introduction to
Financial Services: The Federal Reserve, by Marc Labonte.
8 P.L. 111-203.
9 For more information, see “Margin for Non-Financial Entities or ‘Commercial End Users’” in CRS Report R43117,
The Commodity Futures Trading Commission: Background and Current Issues, by Rena S. Miller.
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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

Table 1. Terrorism Risk Insurance Side by Side: TRIA Statute and
114th Congress Legislation
15 U.S.C. §6701 note
H.R. 26
Provision
(as applicable in 2014)

Title
Terrorism Insurance Program
Terrorism Risk Insurance Program
Reauthorization Act of 2015
Termination Date
December 31, 2014 (§108(a))
December 31, 2020 (§101)
Certification of an
Terrorist act is to be certified by the
Removes the Secretary of State from
Act of Terrorism
Secretary of the Treasury (hereinafter the
certification process. Adds
Secretary) in concurrence with the
“consultation” with the Secretary of
Attorney General and Secretary of State.
Homeland Security. (§105)
Terrorist act must cause $5 million in
insured losses to be certified.
Requires the Secretary to study and
(§102(1)(A))
report on the certification process.
After this study is completed, the
Secretary is to issue rules governing
the process, including a timeline as to
whether an act is considered an act of
terrorism. (§107)
Insured Loss
Federal share of losses will be 85% for
Starting in 2016, the federal share of
Shared
insured losses that exceed the applicable
losses will decrease one percentage
Compensation
insurer deductible. (§103(e))
point per calendar year until it equals
80%. (§102)
Program Trigger
No compensation shall be paid unless the
Beginning in 2016, program trigger
aggregate industry insured losses resulting
increases to $120 million and then $20
from a certified act of terrorism exceed
mil ion per year until it reaches $200
$100 million. (§103(e)(1)(B))
million. Applies program trigger to the
aggregate losses from multiple acts of
terrorism in a calendar year. (§103)
Mandatory
Insurers are required to make terrorism
No change
Availability
coverage available to insureds. (§103(c))
Aggregate
The aggregate retention amount is the
Beginning in the calendar year of
Retention Amount
lesser of (1) the total of all insured losses
enactment, the retention amount
or (2) $27.5 billion.
would be the lesser of (1) the total of
(§103(e)(6))
all insured losses or (2) $29.5 billion,
with this amount further increased by
$2 billion per year until it reaches
$37.5 billion. Once it reaches $37.5
billion, it shall be set by the Secretary
to equal the annual average of the sum
of insurer deductibles for the previous
three years. (§104(1))
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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

15 U.S.C. §6701 note
H.R. 26
Provision
(as applicable in 2014)

Mandatory
If aggregate insured losses are less than the
The gradual increase in the aggregate
Recoupment of
aggregate retention amount, a mandatory
retention (§104(1)) effectively
Federal Share
recoupment of 133% of the federal share of increases the level of mandatory
the loss will be imposed.
recoupment.
If aggregate insured losses are greater than
Increases the mandatory recoupment
the aggregate retention amount but
to 140% of the federal share of losses.
uncompensated insurer losses do not
(§104(2))
exceed the aggregate retention amount, the
mandatory recoupment amount will be
reduced by this amount.
If uncompensated insurer losses are greater
than the aggregate retention amount, there
is no mandatory recoupment but the
Secretary retains discretionary recoupment
authority.
(§103(e)(7))
Timing of
Requires expedited col ection of
Requires expedited col ection of
Mandatory
recoupment amounts:
recoupment amounts:
Recoupment
(1) for a terrorist attack before 2011, al
(1) for a terrorist attack before 2018,
required recoupment amounts must be
al required recoupment amounts must
col ected by September 30, 2012;
be col ected by September 30, 2019;
(2) for a terrorist attack in 2011, 35% of
(2) for a terrorist attack in 2018, 35%
required recoupment amounts must be
of required recoupment amounts must
col ected by September 30, 2012, and the
be col ected by September 30, 2019,
balance must be col ected by September 30, and the balance must be col ected by
2017; and
September 30, 2024; and
(3) for a terrorist attack after 2011, all
(3) for a terrorist attack after 2018, all
required recoupment amounts must be
required recoupment amounts must
col ected by September 30, 2017.
be col ected by September 30, 2024.
(§103(e)(7)(E)(i))
(§104(2))
Risk-Sharing
No similar provisions
Establishes an advisory committee to
Mechanisms
encourage the creation and
development of private risk-sharing
mechanisms. (§110)
Reporting of
Requires Secretary to annual y compile
Beginning in 2016, requires Secretary
Terrorism
information on terrorism insurance
to collect data from insurers on
Insurance Data
premiums. To the extent that such data are
terrorism insurance coverage,
not otherwise available, the Secretary may
including lines of insurance with
require insurers to submit the information
terrorism exposure, premiums earned
to the National Association of Insurance
from terrorism coverage, location of
Commissioners (NAIC), which shall make it exposure, pricing of coverage, take-up
available to the Secretary. (§108(e))
rates, and amount of private
reinsurance purchased. If such data are
available from the states or another
source, the Secretary shall col ect the
data from this source. The Secretary
shall issue a report to Congress based
on these data. (§111)
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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis

15 U.S.C. §6701 note
H.R. 26
Provision
(as applicable in 2014)

Definition of
An entity is considered to have control
Adds the proviso that an entity is not
Control
over another entity if the first entity has the considered to have control if, on the
power to vote 25% of the voting securities;
date of enactment, the entity is “acting
controls the election of the majority of the
as an attorney-in-fact ... for the other
directors; or the Secretary determines that
entity and such other entity is a
the entity exercises control after notice and reciprocal insurer.” This proviso,
hearing. (§102(3))
however, does not apply if the entity is
defined as having control for reasons
other than the attorney-in-fact
relationship. (§106(1))
Studies and
The Secretary shal conduct an expedited
GAO shall conduct a study and issue a
Reports
study of the availability and affordability of
report on the viability of (1) the
group life insurance coverage. (§103(h))
government col ecting up-front
terrorism insurance premiums on
The Secretary shall conduct a study and
insurers, including international
issue a report on the potential effect of
practices, and (2) the creation of a
terrorism on life insurance and other
mandatory capital reserve fund to
personal lines by October 2003. (§103(i))
dedicate capital for terrorism losses
The Secretary shall conduct a study and
before such losses occur within two
issue a report no later than June 30, 2005,
years from the date of enactment.
on the effectiveness of the program and the (§108)
capacity of private insurers to offer
The Secretary shall issue a report to
terrorism coverage after the expiration of
Congress based on the terrorism
the program. (§104(d))
insurance data collected under Section
The President’s Working Group on
11 to be completed by June 30, 2017,
Financial Markets is to report on the
and annual y thereafter. (§111)
market conditions for terrorism risk
The Secretary shal conduct an annual
insurance in 2006, 2010, and 2013.
study of small-insurer competitiveness
(§104(e))
and issue an annual report on this
The Government Accountability Office
study, with the first report not later
(GAO) shall conduct a study and issue a
than June 30, 2016. (§112)
report on the availability and affordability of
Nuclear, Biological, Chemical, or
Radiological (NBCR) coverage and the
outlook for future coverage by December
2008. (§104(f))
GAO shall conduct a study and issue a
report on the availability and affordability of
terrorism insurance in specific markets by
June 2008. (§104(g))
Source: Congressional Research Service (CRS) using material from the U.S. Treasury and
http://www.congress.gov.
Notes: Section numbers for the initial TRIA law are as codified in 15 U.S.C. §6701 note. Section numbers for
current legislation are from the legislation as introduced. H.R. 26 also includes technical corrections that delete
outdated language from several sections of the TRIA statute (Section 106), a section relating to the composition
of the Federal Reserve Board of Governors (Section 109), a Title II relating to insurance agent licensing, and a
Title III related to derivatives. These sections and titles are not included in the table.

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Appendix. TRIA Statute and 113th Congress Legislation
Table A-1. Terrorism Risk Insurance Side by Side: TRIA Statute and 113th Congress Legislation
15 U.S.C. §6701 note
S. 2244
H.R. 4871
S. 2244
Provision
(as applicable in 2014)
(as passed by the Senate)
(Title I as reported)
(as passed by the House)
Title
Terrorism Insurance Program
Terrorism Risk Insurance Program
TRIA Reform Act of 2014
Terrorism Risk Insurance
Reauthorization Act of 2014
Program Reauthorization Act of
2014
Termination Date
December 31, 2014 (§108(a))
December 31, 2021 (§2)
December 31, 2019 (§102)
December 31, 2020 (§101)
Certification of an
Terrorist act is to be certified by the
Requires the Secretary to study and Beginning in 2015, removes the
Beginning in 2015, removes the
Act of Terrorism
Secretary of the Treasury (hereinafter
report on the certification process.
Secretary of State from the
Secretary of State from the
the Secretary) in concurrence with
After the study is completed, the
certification process. Adds
certification process. Adds
the Attorney General and Secretary
Secretary is to issue rules governing “consultation” with the
“consultation” with the Secretary
of State. Terrorist act must cause $5
the process, including a timeline as
Secretary of Homeland Security. of Homeland Security. (§105)
million in insured losses to be
to whether an act is considered an
Removes the $5 million
certified.
act of terrorism. (§6)
minimum size for certification.
Requires the Secretary to study
(§102(1)(A))
and report on the certification
Beginning in 2015, adds a
process. After the study is
deadline of 15 days for
completed, the Secretary is to
“preliminary certification” and
issue rules governing the process,
90 days for “final certification.”
including a timeline as to whether
If no certification is made within
an act is considered an act of
90 days, no certification is
terrorism. (§107)
possible. (§103)
Beginning in 2016, certification
is to include whether or not
terrorist act is an act of
Nuclear, Biological, Chemical,
or Radiological (NBCR)
terrorism according to the
definition added by the
legislation. (§104(a))
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15 U.S.C. §6701 note
S. 2244
H.R. 4871
S. 2244
Provision
(as applicable in 2014)
(as passed by the Senate)
(Title I as reported)
(as passed by the House)
Insured Loss Shared
Federal share of losses will be 85% for Starting in 2016, the federal share
Federal share of losses will be
Starting in 2016, the federal share
Compensation
insured losses that exceed the
of losses will decrease one
85% in 2015, 84% in 2016, 83%
of losses will decrease one
applicable insurer deductible.
percentage point per calendar year
in 2017, 82% in 2018, and 80%
percentage point per calendar
(§103(e))
until equal to 80%. (§3)
in 2019 except in the case of an
year until equal to 80%. (§102)
NBCR terrorist event. For an
NBCR attack, the federal share
of losses will remain at 85%.
(§104(b))
Program Trigger
No compensation shall be paid unless
No change
Increases program trigger to
Beginning in 2016, program
the aggregate industry-insured losses
$200 million in 2016, $300
trigger increases to $120 million
resulting from a certified act of
million in 2017, $400 million in
and then $20 million per year
terrorism exceed $100 million.
2018, and $500 million in 2019.
until it reaches $200 million.
(§103(e)(1)(B))
Applies program trigger to the
Applies program trigger to the
aggregate losses from multiple
aggregate losses from multiple
acts of terrorism in a calendar
acts of terrorism in a calendar
year if the insured losses from
year. (§103)
each act exceed $50 million.
Program trigger for NBCR
attacks remains at $100 million.
(§104(c))
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15 U.S.C. §6701 note
S. 2244
H.R. 4871
S. 2244
Provision
(as applicable in 2014)
(as passed by the Senate)
(Title I as reported)
(as passed by the House)
Treatment of NBCR No similar provisions
No similar provisions
Beginning in 2016, certification
No similar provisions
Terrorism
is to include whether or not
terrorist act is an act of NCBR
terrorism according to the
definition added by the
legislation. (§104(a))
Federal share of losses will be
85% in 2015, 84% in 2016, 83%
in 2017, 82% in 2018, and 80%
in 2019 except in the case of an
NBCR terrorist event. For an
NBCR attack, the federal share
of losses will remain at 85%.
(§104(b))
Program trigger for NBCR
attacks remains at $100 million.
(§104(c))
Mandatory
Insurers are required to make
No change
Small insurers, as defined by the
No change
Availability
terrorism coverage available to
Secretary, may be exempted
insureds. (§103(c))
from mandatory availability
upon request. This exemption
applies if meeting the make-
available requirement is
determined by the insurer’s
domiciliary state insurance to
cause financial hardship or be
financially infeasible. This
determination would be based
on criteria set by the Secretary.
(§105)
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15 U.S.C. §6701 note
S. 2244
H.R. 4871
S. 2244
Provision
(as applicable in 2014)
(as passed by the Senate)
(Title I as reported)
(as passed by the House)
Aggregate Retention The aggregate retention amount is the Beginning in the calendar year after
Beginning in 2016, the retention
Beginning in the calendar year
Amount
lesser of (1) the total of all insured
enactment, the retention amount
amount would be the lesser of
after enactment, the retention
losses or (2) $27.5 billion.
would be the lesser of (1) the total
(1) the total of all insurer
amount would be the lesser of
(§103(e)(6))
of all insured losses or (2) $29.5
deductibles in the previous year
(1) the total of all insured losses
billion, with this amount further
or (2) the total of all insured
or (2) $29.5 billion, with this
increased by $2 billion per year
losses. (§107)
amount further increased by $2
until it reaches $37.5 billion. (§4(1))
billion per year until it reaches
$37.5 billion. Once it reaches
$37.5 billion, it shall be set by the
Secretary to equal the annual
average of the sum of insurer
deductibles for the previous
three years. (§104(1))
Mandatory
If aggregate insured losses are less
The gradual increase in the
Mandatory recoupment
The gradual increase in the
Recoupment of
than the aggregate retention amount,
aggregate retention amount to
increases to 150% of the federal
aggregate retention (§104(1))
Federal Share
a mandatory recoupment of 133% of
$37.5 billion (§4(1)) effectively
share of losses beginning in
effectively increases the level of
the federal share of the loss will be
increases the level of mandatory
2016 and all years thereafter.
mandatory recoupment.
imposed.
recoupment.
(§106)
Increases the mandatory
If aggregate insured losses are greater
Increases the mandatory
Beginning in 2016, mandatory
recoupment to 140% of the
than the aggregate retention amount
recoupment to 135.5% of the
recoupment amount is equal to
federal share of losses. (§104(2))
but uncompensated insurer losses do
federal share of losses. (§4(2))
the lesser of (1) the aggregate
not exceed the aggregate retention

amount of federal compensation
amount, the mandatory recoupment
received by insurers or (2) the
amount will be reduced by this
aggregate retention amount.
amount.
(§107)
If uncompensated insurer losses are
greater than the aggregate retention
amount, there is no mandatory
recoupment but the Secretary of the
Treasury retains discretionary
recoupment authority.
(§103(e)(7))
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15 U.S.C. §6701 note
S. 2244
H.R. 4871
S. 2244
Provision
(as applicable in 2014)
(as passed by the Senate)
(Title I as reported)
(as passed by the House)
Timing of
Requires expedited col ection of
Requires expedited col ection of
Beginning in 2016, requires that
Requires expedited collection of
Mandatory
recoupment amounts:
recoupment amounts:
recoupment commence within
recoupment amounts:
Recoupment
18 months of an attack. (§108)
(1) for a terrorist attack before 2011,
(1) for a terrorist attack before
(1) for a terrorist attack before
all required recoupment amounts
2018, al required recoupment
2018, all required recoupment
must be col ected by September 30,
amounts must be col ected by
amounts must be col ected by
2012;
September 30, 2019;
September 30, 2019;
(2) for a terrorist attack in 2011, 35%
(2) for a terrorist attack in 2018,
(2) for a terrorist attack in 2018,
of required recoupment amounts
35% of required recoupment
35% of required recoupment
must be col ected by September 30,
amounts must be col ected by
amounts must be col ected by
2012, and the balance must be
September 30, 2019, and the
September 30, 2019, and the
col ected by September 30, 2017; and
balance must be col ected by
balance must be collected by
September 30, 2024; and
September 30, 2024; and
(3) for a terrorist attack after 2011, all
required recoupment amounts must
(3) for a terrorist attack after 2018,
(3) for a terrorist attack after
be col ected by September 30, 2017.
al required recoupment amounts
2018, all required recoupment
(§103(e)(7)(E)(i))
must be col ected by September 30,
amounts must be col ected by
2024.
September 30, 2024.
(§4(2))
(§104(2))
Risk Sharing
No similar provisions
Establishes an advisory committee
Establishes an advisory
Establishes an advisory
Mechanisms
to encourage the creation and
committee to encourage the
committee to encourage the
development of private risk-sharing
creation and development of
creation and development of
mechanisms. (§9)
private risk-sharing mechanisms. private risk-sharing mechanisms.
(§109)
(§110)
CRS-11

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15 U.S.C. §6701 note
S. 2244
H.R. 4871
S. 2244
Provision
(as applicable in 2014)
(as passed by the Senate)
(Title I as reported)
(as passed by the House)
Reporting of
Requires Secretary to annual y
No change
Beginning in 2016, requires
Beginning in 2016, requires
Terrorism Insurance compile information on terrorism
Secretary to col ect data from
Secretary to col ect data from
Data
insurance premiums. To the extent
insurers on terrorism insurance
insurers on terrorism insurance
that such data are not otherwise
coverage, including lines of
coverage, including lines of
available, the Secretary may require
insurance with terrorism
insurance with terrorism
insurers to submit the information to
exposure, premiums earned
exposure, premiums earned from
the National Association of Insurance
from terrorism coverage,
terrorism coverage, location of
Commissioners (NAIC), which shall
location of exposure, pricing of
exposure, pricing of coverage,
make it available to the Secretary.
coverage, take-up rates, and
take-up rates, and amount of
(§108(e))
amount of private reinsurance
private reinsurance purchased. If
purchased. If such data are
such data are available from the
available from the states or
states or another source, the
another source, the Secretary
Secretary shall col ect the data
shall collect the data from this
from this source. The Secretary
source. The Secretary shall issue shall issue a report to Congress
a report to Congress based on
based on these data. (§111)
these data. (§110)
Definition of
An entity is considered to have
Adds the proviso that an entity is
Adds the proviso that an entity
Adds the proviso that an entity is
Control
control over another entity if the first
not considered to have control if,
is not considered to have
not considered to have control if,
entity has the power to vote 25% of
on the date of enactment, the entity control if, on the date of
on the date of enactment, the
the voting securities; controls the
is “acting as an attorney-in-fact ...
enactment, the entity is “acting
entity is “acting as an attorney-in-
election of the majority of the
for the other entity and such other
as an attorney-in-fact ... for the
fact ... for the other entity and
directors; or the Secretary determines entity is a reciprocal insurer.” This
other entity and such other
such other entity is a reciprocal
that the entity exercises control after
proviso, however, does not apply if
entity is a reciprocal insurer.”
insurer.” This proviso, however,
notice and hearing. (§102(3))
the entity is defined as having
This proviso, however, does not does not apply if the entity is
control for reasons other than the
apply if the entity is defined as
defined as having control for
attorney-in-fact relationship. (§5(1))
having control for reasons other reasons other than the attorney-
than the attorney-in-fact
in-fact relationship. (§106(1))
relationship. (§112)
CRS-12

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15 U.S.C. §6701 note
S. 2244
H.R. 4871
S. 2244
Provision
(as applicable in 2014)
(as passed by the Senate)
(Title I as reported)
(as passed by the House)
Studies and Reports
The Secretary shal conduct an
GAO shal conduct a study and
The Secretary shall issue a
GAO shall conduct a study and
expedited study of the availability and
issue a report on the viability of the
report to Congress based on
issue a report on the viability of
affordability of group life insurance
government col ecting up-front
the terrorism insurance data
(1) the government col ecting up-
coverage. (§103(h))
terrorism insurance premiums on
col ected under Section 11 to
front terrorism insurance
insurers within two years from the
be completed by June 30, 2017,
premiums on insurers including
The Secretary shall conduct a study
date of enactment. (§7)
and annually thereafter. (§110)
international practices and (2) the
and issue a report on the potential
creation of a mandatory capital
effect of terrorism on life insurance
The Secretary shall conduct an
reserve fund to dedicate capital
and other personal lines by October
annual study of small-insurer
for terrorism losses before such
2003. (§103(i))
competitiveness and issue an
losses occur within two years
annual report on this study,
The Secretary shall conduct a study
from the date of enactment.
with the first report not later
and issue a report no later than June
(§108)
than June 30, 2016. (§113)
30, 2005, on the effectiveness of the
The Secretary shall issue a report
program and the capacity of private
The Congressional Budget
to Congress based on the
insurers to offer terrorism coverage
Office and the Office of
terrorism insurance data
after the expiration of the program.
Management and Budget shall
col ected under Section 11 to be
(§104(d))
each conduct a study and issue a completed by June 30, 2017, and
report regarding the application
The President’s Working Group on
annually thereafter. (§111)
of accrual accounting concepts
Financial Markets is to report on the
to TRIA and other federal
The Secretary shall conduct an
market conditions for terrorism risk
insurance programs not later
annual study of small-insurer
insurance in 2006, 2010, and 2013.
than 12 months after the date of competitiveness and issue an
(§104(e))
enactment. (§114)
annual report on this study with
The Government Accountability
the first report not later than
GAO shal conduct a study and
Office (GAO) shall conduct a study
June 30, 2016. (§112)
issue a report on the viability of
and issue a report on the availability
(1) the government col ecting
and affordability of NBCR coverage
up-front terrorism insurance
and the outlook for future coverage
premiums on insurers and (2)
by December 2008. (§104(f))
the creation of a mandatory
GAO shall conduct a study and issue a
capital reserve fund to dedicate
report on the availability and
capital for terrorism losses
affordability of terrorism insurance in
before such losses occur within
specific markets by June 2008.
two years from the date of
(§104(g))
enactment. (§115)
Source: Congressional Research Service, using material from the U.S. Treasury, http://www.congress.gov, and the House Committee on Rules.
CRS-13

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Notes: Section numbers for the initial TRIA law are as codified in 15 U.S.C. §6701 note. Section numbers for current legislation are from the legislation as amended. S.
2244 as passed by the Senate and the House substitute amendment to S. 2244 also include technical corrections that delete outdated language from several sections of
the TRIA statute (Section 5(2) and Section 106, respectively), a section relating to the composition of the Federal Reserve Board of Governors (Section 8 and Section
109, respectively), and a second title in both bills relating to insurance agent licensing. The substitute amendment also adds a Title III related to derivatives. These
sections and titles are not included in the chart.
CRS-14

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TRIA in the 114th Congress: Issue Summary and Side-by-Side Analysis


Author Contact Information

Baird Webel

Specialist in Financial Economics
bwebel@crs.loc.gov, 7-0652


Congressional Research Service
15

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