H.Res. 849: Senate Amendment to H.R. 2761 - Terrorism Risk Insurance Revision and Extension Act of 2007

COMMITTEE ACTION: REPORTED BY VOICE VOTE on Thursday December 6, 2007.
FLOOR ACTION: LAID UPON THE TABLE PURSUANT TO THE PROVISIONS OF H. Res. 893 on Wednesday December 19, 2007.

MANAGERS:ARCURI/SESSIONS 

110th Congress 
1st Session

H.RES. 849

[Report No. 110-475]

 

Providing for the consideration of the Senate amendment to the bill (H.R. 2761) - Terrorism Risk Insurance Revision and Extension Act of 2007

  1. Provides for the consideration of the Senate amendment to H.R. 2761.
  2. Makes in order a motion by the chairman of the Committee on Financial Services to concur in the Senate amendment with the amendment printed in the report of the Committee on Rules accompanying the resolution. Waives all points of order against consideration of the motion except those arising under clause 10 of rule XXI.
  3. Provides that the Senate amendment and the motion shall be considered as read.
  4. Provides one hour of debate on the motion equally divided among and controlled by the chairman and ranking minority member of the Committee on Financial Services
  5. Provides that, notwithstanding the operation of the previous question, the Chair may postpone further consideration of the motion to a time designated by the Speaker.

 

RESOLUTION

Resolved, That upon adoption of this resolution it shall be in order to take from the Speaker's table the bill (H.R. 2761) to extend the Terrorism Insurance Program of the Department of the Treasury, and for other purposes, with the Senate amendment thereto, and to consider in the House, without intervention of any point of order except those arising under clause 10 of rule XXI, a motion offered by the chairman of the Committee on Financial Services or his designee that the House concur in the Senate amendment with the amendment printed in the report of the Committee on Rules accompanying this resolution.  The Senate amendment and the motion shall be considered as read.  The motion shall be debatable for one hour equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services.  The previous question shall be considered as ordered on the motion to its adoption without intervening motion or demand for division of the question.

 Sec. 2. During consideration of the motion to concur pursuant to this resolution, notwithstanding the operation of the previous question, the Chair may postpone further consideration of the motion to such time as may be designated by the Speaker.

 

SUMMARY OF THE HOUSE AMENDMENT TO THE SENATE AMENDMENT TO H.R. 2761

The amendment incorporates the entirety of the Senate amendment to H.R. 2761, and adds certain provisions from the original House-passed H.R. 2761.

The amendment adds group life to TRIA’s covered lines, and creates a separate $5 billion recoupment pool for group life.  Property and casualty insurance would retain its separate $27.5 billion recoupment pool.  The amendment also caps the level of Federal exposure at $1 million per certificate holder under any group life insurance policy.

The amendment provides that for an act of terrorism resulting in aggregate industry insured losses exceeding $1 billion, the deductible that would apply to insurers affected by that particular $1 billion or greater act of terrorism decreases to the following percentage:  5% if such act occurs in 2008, 5.5% if such act occurs in 2009, and increasing by 50 basis points each additional Program Year.  However, such percentage will reset to 5% in the Program Year following a $1 billion or greater act of terrorism, and start increasing again by 50 basis points each subsequent additional Program Year.  The Secretary may combine multiple acts of terrorism in the same Program Year in the same geographic area for determining whether the $1 billion threshold has been exceeded.  In addition, the trigger will decrease to $5 million if a certified act of terrorism occurs for which resulting aggregate industry insured losses exceed $1 billion.

Also, the amendment adds other provisions including lowering the trigger from $100 million to $50 million generally, and clarifies that the provisions of the bill will apply beginning on January 1, 2008.
 

Text of House Amendment to the Senate Amendment