(Sec. 4) Prescribes guidelines for: (1) mandatory insurance company participation in the Program; and (2) mandatory availability of property and casualty insurance for insured losses that does not differ materially from coverage limitations applicable to losses arising from events other than terrorism.
Predicates Program participation by certain governmental or quasi-governmental entities upon a determination made by the Secretary before the occurrence of an act of terrorism in which the entity incurs an insured loss.
Sets forth a formula for shared insurance loss coverage that includes: (1) a Federal share of compensation that is either 80 percent of aggregate insured losses of less than $10 billion, or 90 percent of aggregate insured losses that exceed $10 billion; and (2) a cap on the annual liability of the Federal share of compensation.
Denies judicial review of the Secretary's determination.
(Sec. 6) Terminates the Program one year after the date of enactment. Prescribes conditions for Program extension.
Expresses the sense of Congress that the Secretary should make any determination regarding either Program extension or termination in sufficient time to enable participating insurance companies to include coverage for acts of terrorism in their policies for the second year of the Program, if extended.
Mandates studies and reports to Congress on: (1) insurance coverage availability coupled with insurance industry capacity to absorb future losses resulting from acts of terrorism taking into account profitability; (2) the potential effects of acts of terrorism on the availability of life insurance and other insurance coverage; and (3) terrorism risk insurance premium rates charged by participating insurance companies for insured losses.
(Sec. 8) Expresses the sense of the Congress that the insurance industry should build capacity and aggregate risk to provide affordable property and casualty insurance coverage for terrorism risk.
(Sec. 9) Authorizes appropriations.
(Sec. 10) Establishes a Federal cause of action for property damage, personal injury, or death arising out of or resulting from an act of terrorism which shall preempt State action, and which shall be the exclusive cause of action and remedy for claims (except for claims against terrorists or aiders and abettors, including governments and other entities).
(Sec. 11) Provides for satisfaction of judgments from frozen assets of terrorists, terrorist organizations, and state sponsors of terrorism. Exempts certain property subject to the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular Relations.
Amends the Victims of Trafficking and Violence Protection Act of 2000 to set forth a special rule for cases against Iran with respect to distribution of foreign military sales funds inadequate to satisfy the amount of compensatory awards against Iran.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2600 Placed on Calendar Senate (PCS)]
Calendar No. 410
107th CONGRESS
2d Session
S. 2600
To ensure the continued financial capacity of insurers to provide
coverage for risks from terrorism.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 7, 2002
Mr. Dodd (for himself, Mr. Sarbanes, Mr. Schumer, and Mr. Reid)
introduced the following bill; which was read the first time
June 10, 2002
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To ensure the continued financial capacity of insurers to provide
coverage for risks from terrorism.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Terrorism Risk Insurance Act of
2002''.
SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) property and casualty insurance firms are important
financial institutions, the products of which allow
mutualization of risk and the efficient use of financial
resources and enhance the ability of the economy to maintain
stability, while responding to a variety of economic,
political, environmental, and other risks with a minimum of
disruption;
(2) the ability of businesses and individuals to obtain
property and casualty insurance at reasonable and predictable
prices, in order to spread the risk of both routine and
catastrophic loss, is critical to economic growth, urban
development, and the construction and maintenance of public and
private housing, as well as to the promotion of United States
exports and foreign trade in an increasingly interconnected
world;
(3) the ability of the insurance industry to cover the
unprecedented financial risks presented by potential acts of
terrorism in the United States can be a major factor in the
recovery from terrorist attacks, while maintaining the
stability of the economy;
(4) widespread financial market uncertainties have arisen
following the terrorist attacks of September 11, 2001,
including the absence of information from which financial
institutions can make statistically valid estimates of the
probability and cost of future terrorist events, and therefore
the size, funding, and allocation of the risk of loss caused by
such acts of terrorism;
(5) a decision by property and casualty insurers to deal
with such uncertainties, either by terminating property and
casualty coverage for losses arising from terrorist events, or
by radically escalating premium coverage to compensate for
risks of loss that are not readily predictable, could seriously
hamper ongoing and planned construction, property acquisition,
and other business projects, generate a dramatic increase in
rents, and otherwise suppress economic activity; and
(6) the United States Government should provide temporary
financial compensation to insured parties, contributing to the
stabilization of the United States economy in a time of
national crisis, while the financial services industry develops
the systems, mechanisms, products, and programs necessary to
create a viable financial services market for private terrorism
risk insurance.
(b) Purpose.--The purpose of this Act is to establish a temporary
Federal program that provides for a transparent system of shared public
and private compensation for insured losses resulting from acts of
terrorism, in order to--
(1) protect consumers by addressing market disruptions and
ensure the continued widespread availability and affordability
of property and casualty insurance for terrorism risk; and
(2) allow for a transitional period for the private markets
to stabilize, resume pricing of such insurance, and build
capacity to absorb any future losses, while preserving State
insurance regulation and consumer protections.
SEC. 3. DEFINITIONS.
In this Act, the following definitions shall apply:
(1) Act of terrorism.--
(A) Certification.--The term ``act of terrorism''
means any act that is certified by the Secretary, in
concurrence with the Secretary of State, and the
Attorney General of the United States--
(i) to be a violent act or an act that is
dangerous to--
(I) human life;
(II) property; or
(III) infrastructure;
(ii) to have resulted in damage within the
United States, or outside the United States in
the case of an air carrier described in
paragraph (3)(A)(ii); and
(iii) to have been committed by an
individual or individuals acting on behalf of
any foreign person or foreign interest, as part
of an effort to coerce the civilian population
of the United States or to influence the policy
or affect the conduct of the United States
Government by coercion.
(B) Limitation.--No act or event shall be certified
by the Secretary as an act of terrorism if--
(i) the act or event is committed in the
course of a war declared by the Congress; or
(ii) losses resulting from the act or
event, in the aggregate, do not exceed
$5,000,000.
(C) Determinations final.--Any certification of, or
determination not to certify, an act or event as an act
of terrorism under this paragraph shall be final, and
shall not be subject to judicial review.
(2) Business interruption coverage.--The term ``business
interruption coverage''--
(A) means coverage of losses for temporary
relocation expenses and ongoing expenses, including
ordinary wages, where--
(i) there is physical damage to the
business premises of such magnitude that the
business cannot open for business;
(ii) there is physical damage to other
property that totally prevents customers or
employees from gaining access to the business
premises; or
(iii) the Federal, State, or local
government shuts down an area due to physical
or environmental damage, thereby preventing
customers or employees from gaining access to
the business premises; and
(B) does not include lost profits, other than in
the case of a small business concern (as defined in
section 3 of the Small Business Act (15 U.S.C. 632) and
applicable regulations thereunder) in any case
described in clause (i), (ii), or (iii) of subparagraph
(A).
(3) Insured loss.--The term ``insured loss''--
(A) means any loss resulting from an act of
terrorism that is covered by primary property and
casualty insurance, including business interruption
coverage, issued by a participating insurance company,
if such loss--
(i) occurs within the United States; or
(ii) occurs to an air carrier (as defined
in section 40102 of title 49, United States
Code) or to a United States flag vessel (or a
vessel based principally in the United States,
on which United States income tax is paid and
whose insurance coverage is subject to
regulation in the United States), regardless of
where the loss occurs; and
(B) excludes coverage under any life or health
insurance.
(4) Market share.--
(A) In general.--The ``market share'' of a
participating insurance company shall be calculated
using the total amount of direct written property and
casualty insurance premiums for the participating
insurance company during the 2-year period preceding
the year in which the subject act of terrorism occurred
(or during such other period for which adequate data
are available, as determined by the Secretary), as a
percentage of the aggregate of all such property and
casualty insurance premiums industry-wide during that
period.
(B) Adjustments.--The Secretary may adjust the
market share of a participating insurance company under
subparagraph (A), as necessary to reflect current
market participation of that participating insurance
company.
(5) NAIC.--The term ``NAIC'' means the National Association
of Insurance Commissioners.
(6) Participating insurance company.--The term
``participating insurance company'' means any insurance
company, including any subsidiary or affiliate thereof--
(A) that--
(i) is licensed or admitted to engage in
the business of providing primary insurance in
any State, and was so licensed or admitted on
September 11, 2001; or
(ii) is not licensed or admitted as
described in clause (i), if it is an eligible
surplus line carrier listed on the Quarterly
Listing of Alien Insurers of the NAIC, or any
successor thereto;
(B) that receives direct premiums for any type of
commercial property and casualty insurance coverage or
that, not later than 21 days after the date of
enactment of this Act, submits written notification to
the Secretary of its intent to participate in the
Program with regard to personal lines of property and
casualty insurance; and
(C) that meets any other criteria that the
Secretary may reasonably prescribe.
(7) Participating insurance company deductible.--The term
``participating insurance company deductible'' means--
(A) a participating insurance company's market
share, multiplied by $10,000,000,000, with respect to
insured losses resulting from an act of terrorism
occurring during the period beginning on the date of
enactment of this Act and ending at midnight on
December 31, 2002; and
(B) a participating insurance company's market
share, multiplied by $15,000,000,000, with respect to
insured losses resulting from an act of terrorism
occurring during the period beginning on January 1,
2003 and ending at midnight on December 31, 2003, if
the Program is extended in accordance with section 6.
(8) Person.--The term ``person'' means any individual,
business or nonprofit entity (including those organized in the
form of a partnership, limited liability company, corporation,
or association), trust or estate, or a State or political
subdivision of a State or other governmental unit.
(9) Program.--The term ``Program'' means the Terrorism
Insured Loss Shared Compensation Program established by this
Act.
(10) Property and casualty insurance.--The term ``property
and casualty insurance''--
(A) means commercial lines of property and casualty
insurance;
(B) includes personal lines of property and
casualty insurance, if a notification is made in
accordance with paragraph (6)(B); and
(C) does not include--
(i) Federal crop insurance issued or
reinsured under the Federal Crop Insurance Act
(7 U.S.C. 1501 et seq.); or
(ii) private mortgage insurance, as that
term is defined in section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901).
(11) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(12) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana Islands,
American Samoa, Guam, and each of the United States Virgin
Islands.
(13) United states.--The term ``United States'' means all
States of the United States.
SEC. 4. TERRORISM INSURED LOSS SHARED COMPENSATION PROGRAM.
(a) Establishment of Program.--
(1) In general.--There is established in the Department of
the Treasury the Terrorism Insured Loss Shared Compensation
Program.
(2) Authority of the secretary.--Notwithstanding any other
provision of State or Federal law, the Secretary shall
administer the Program, and shall pay the Federal share of
compensation for insured losses in accordance with subsection
(e).
(b) Conditions for Federal Payments.--No payment may be made by the
Secretary under subsection (e), unless--
(1) a person that suffers an insured loss, or a person
acting on behalf of that person, files a claim with a
participating insurance company;
(2) the participating insurance company provides clear and
conspicuous disclosure to the policyholder of the premium
charged for insured losses covered by the Program and the
Federal share of compensation for insured losses under the
Program--
(A) in the case of any policy covering an insured
loss that is issued on or after the date of enactment
of this Act, in the policy, at the time of offer,
purchase, and renewal of the policy; and
(B) in the case of any policy that is issued before
the date of enactment of this Act, not later than 90
days after that date of enactment;
(3) the participating insurance company processes the claim
for the insured loss in accordance with its standard business
practices, and any reasonable procedures that the Secretary may
prescribe; and
(4) the participating insurance company submits to the
Secretary, in accordance with such reasonable procedures as the
Secretary may establish--
(A) a claim for payment of the Federal share of
compensation for insured losses under the Program;
(B) written verification and certification--
(i) of the underlying claim; and
(ii) of all payments made for insured
losses; and
(C) certification of its compliance with the
provisions of this subsection.
(c) Mandatory Participation; Mandatory Availability.--Each
insurance company that meets the definition of a participating
insurance company under section 3--
(1) shall participate in the Program;
(2) shall make available in all of its property and
casualty insurance policies (in all of its participating
lines), coverage for insured losses; and
(3) shall make available property and casualty insurance
coverage for insured losses that does not differ materially
from the terms, amounts, and other coverage limitations
applicable to losses arising from events other than acts of
terrorism.
(d) Participation by Self Insured Entities.--
(1) Determination by the secretary.--The Secretary may, in
consultation with the NAIC, establish procedures to allow
participation in the Program by municipalities and other
governmental or quasi-governmental entities (and by any other
entity, as the Secretary deems appropriate) operating through
self insurance arrangements that were in existence on September
11, 2001, but only if the Secretary makes a determination with
regard to participation by any such entity before the
occurrence of an act of terrorism in which the entity incurs an
insured loss.
(2) Participation.--If the Secretary makes a determination
to allow an entity described in paragraph (1) to participate in
the Program, all reports, conditions, requirements, and
standards established by this Act for participating insurance
companies shall apply to any such entity, as determined to be
appropriate by the Secretary.
(e) Shared Insurance Loss Coverage.--
(1) Federal share.--
(A) In general.--Subject to the cap on liability
under paragraph (2) and the limitation under paragraph
(6), the Federal share of compensation under the
Program to be paid by the Secretary for insured losses
resulting from an act of terrorism occurring during the
period beginning on the date of enactment of this Act
and ending at midnight on December 31, 2002--
(i) shall be equal to 80 percent of that
portion of the amount of aggregate insured
losses that--
(I) exceeds the participating
insurance company deductibles required
to be paid for those insured losses;
and
(II) does not exceed
$10,000,000,000; and
(ii) shall be equal to 90 percent of that
portion of the amount of aggregate insured
losses that--
(I) exceeds the participating
insurance company deductibles required
to be paid for those insured losses;
and
(II) exceeds $10,000,000,000.
(B) Extension period.--If the Program is extended
in accordance with section 6, the Federal share of
compensation under the Program to be paid by the Secretary for insured
losses resulting from an act of terrorism occurring during the period
beginning on January 1, 2003 and ending at midnight on December 31,
2003, shall be calculated in accordance with clauses (i) and (ii) of
subparagraph (A), subject to the cap on liability in paragraph (2) and
the limitation under paragraph (6).
(C) Pro rata share.--If, during the period
described in subparagraph (A) (or during the period
described in subparagraph (B), if the Program is
extended in accordance with section 6), the aggregate
insured losses for that period exceed $10,000,000,000,
the Secretary shall determine the pro rata share for
each participating insurance company of the Federal
share of compensation for insured losses calculated
under subparagraph (A).
(2) Cap on annual liability.--Notwithstanding paragraph
(1), or any other provision of Federal or State law, if the
aggregate insured losses exceed $100,000,000,000 during any
period referred to in subparagraph (A) or (B) of paragraph
(1)--
(A) the Secretary shall not make any payment under
this Act for any portion of the amount of such losses
that exceeds $100,000,000,000; and
(B) participating insurance companies shall not be
liable for the payment of any portion of the amount
that exceeds $100,000,000,000.
(3) Notice to congress.--The Secretary shall notify the
Congress if estimated or actual aggregate insured losses exceed
$100,000,000,000 in any period described in paragraph (1), and
the Congress shall determine the procedures for and the source
of any such excess payments.
(4) Final netting.--The Secretary shall have sole
discretion to determine the time at which claims relating to
any insured loss or act of terrorism shall become final.
(5) Determinations final.--Any determination of the
Secretary under this subsection shall be final, and shall not
be subject to judicial review.
(6) In-force reinsurance agreements.--For policies covered
by reinsurance contracts in force on the date of enactment of
this Act, until the in-force reinsurance contract is renewed,
amended, or has reached its 1-year anniversary date, any
Federal share of compensation due to a participating insurance
company for insured losses during the effective period of the
Program shall be shared--
(A) with all reinsurance companies to which the
participating insurance company has ceded some share of
the insured loss pursuant to an in-force reinsurance
contract; and
(B) in a manner that distributes the Federal share
of compensation for insured losses between the
participating insurance company and the reinsurance
company or companies in the same proportion as the
insured losses would have been distributed if the
Program did not exist.
SEC. 5. GENERAL AUTHORITY AND ADMINISTRATION OF CLAIMS.
(a) General Authority.--The Secretary shall have the powers and
authorities necessary to carry out the Program, including authority--
(1) to investigate and audit all claims under the Program;
and
(2) to prescribe regulations and procedures to implement
the Program.
(b) Interim Rules and Procedures.--The Secretary shall issue
interim final rules or procedures specifying the manner in which--
(1) participating insurance companies may file, verify, and
certify claims under the Program;
(2) the Secretary shall publish or otherwise publicly
announce the applicable percentage of insured losses that is
the responsibility of participating insurance companies and the
percentage that is the responsibility of the Federal Government
under the Program;
(3) the Federal share of compensation for insured losses
will be paid under the Program, including payments based on
estimates of or actual aggregate insured losses;
(4) the Secretary may, at any time, seek repayment from or
reimburse any participating insurance company, based on
estimates of insured losses under the Program, to effectuate
the insured loss sharing provisions contained in section 4;
(5) each participating insurance company that incurs
insured losses shall pay its pro rata share of insured losses,
in accordance with section 4; and
(6) the Secretary will determine any final netting of
payments for actual insured losses under the Program, including
payments owed to the Federal Government from any participating
insurance company and any Federal share of compensation for
insured losses owed to any participating insurance company, to
effectuate the insured loss sharing provisions contained in
section 4.
(c) Subrogation Rights.--The United States shall have the right of
subrogation with respect to any payment made by the United States under
the Program.
(d) Contracts for Services.--The Secretary may employ persons or
contract for services as may be necessary to implement the Program.
(e) Civil Penalties.--The Secretary may assess civil money
penalties for violations of this Act or any rule, regulation, or order
issued by the Secretary under this Act relating to the submission of
false or misleading information for purposes of the Program, or any
failure to repay any amount required to be reimbursed under regulations
or procedures described in section 5(b). The authority granted under
this subsection shall continue during any period in which the
Secretary's authority under section 6(d) is in effect.
SEC. 6. TERMINATION OF PROGRAM; DISCRETIONARY EXTENSION.
(a) Termination of Program.--
(1) In general.--The Program shall terminate at midnight on
December 31, 2002, unless the Secretary--
(A) determines, after considering the report and
finding required by this section, that the Program
should be extended for one additional year, until
midnight on December 31, 2003; and
(B) promptly notifies the Congress of such
determination and the reasons therefor.
(2) Determination final.--The determination of the
Secretary under paragraph (1) shall be final, and shall not be
subject to judicial review.
(3) Termination after extension.--If the Program is
extended under paragraph (1), the Program shall terminate at
midnight on December 31, 2003.
(b) Report to Congress.--Not later than 9 months after the date of
enactment of this Act, the Secretary shall submit a report to
Congress--
(1) regarding--
(A) the availability of insurance coverage for acts
of terrorism;
(B) the affordability of such coverage, including
the effect of such coverage on premiums; and
(C) the capacity of the insurance industry to
absorb future losses resulting from acts of terrorism,
taking into account the profitability of the insurance
industry; and
(2) that considers--
(A) the impact of the Program on each of the
factors described in paragraph (1); and
(B) the probable impact on such factors and on the
United States economy if the Program terminates at
midnight on December 31, 2002.
(c) Finding Required.--A determination under subsection (a) to
extend the Program shall be based on a finding by the Secretary that--
(1) widespread market uncertainties continue to
disrupt the ability of insurance companies to price
insurance coverage for losses resulting from acts of
terrorism, thereby resulting in the continuing
unavailability of affordable insurance for consumers;
and
(2) extending the Program for an additional year
would likely encourage economic stabilization and
facilitate a transition to a viable market for private
terrorism risk insurance.
(d) Continuing Authority To Pay or Adjust Compensation.--Following
the termination of the Program under subsection (a), the Secretary may
take such actions as may be necessary to ensure payment, reimbursement,
or adjustment of compensation for insured losses arising out of any act
of terrorism occurring during the period in which the Program was in
effect under this Act, in accordance with the provisions of section 4
and regulations promulgated thereunder.
(e) Repeal; Savings Clause.--This Act is repealed at midnight on
the final termination date of the Program under subsection (a), except
that such repeal shall not be construed--
(1) to prevent the Secretary from taking, or causing to be
taken, such actions under subsection (d) of this section and
sections 4(e)(4), 4(e)(5), 5(a)(1), 5(c), and 5(e) (as in
effect on the day before the date of such repeal), and
applicable regulations promulgated thereunder, during any
period in which the authority of the Secretary under subsection
(d) of this section is in effect; or
(2) to prevent the availability of funding under section
10(b) during any period in which the authority of the Secretary
under subsection (d) of this section is in effect.
(f) Sense of the Congress.--It is the sense of the Congress that
the Secretary should make any determination under subsection (a) in
sufficient time to enable participating insurance companies to include
coverage for acts of terrorism in their policies for 2003.
(g) Study and Report on Scope of the Program.--
(1) Study.--The Secretary, after consultation with the
NAIC, representatives of the insurance industry, and other
experts in the insurance field, shall conduct a study of the
potential effects of acts of terrorism on the availability of
life insurance and other lines of insurance coverage.
(2) Report.--Not later than 9 months after the date of
enactment of this Act, the Secretary shall submit a report to
the Congress on the results of the study conducted under
paragraph (1).
(h) Reports Regarding Terrorism Risk Insurance Premiums.--
(1) Report to the naic.--Beginning 6 months after the date
of enactment of this Act, and every 6 months thereafter, each
participating insurance company shall submit a report to the
NAIC that states the premium rates charged by that
participating insurance company during the preceding 6-month
period for insured losses covered by the Program, and includes
an explanation of and justification for those rates.
(2) Reports forwarded.--The NAIC shall promptly forward
copies of each report submitted under paragraph (1) to the
Secretary, the Secretary of Commerce, the Chairman of the
Federal Trade Commission, and the Comptroller General of the
United States.
(3) Agency reports to congress.--
(A) In general.--The Secretary, the Secretary of
Commerce, and the Chairman of the Federal Trade
Commission shall submit joint reports to Congress and
the Comptroller General of the United States
summarizing and evaluating the reports forwarded under
paragraph (2).
(B) Timing.--The reports required under
subparagraph (A) shall be submitted--
(i) 9 months after the date of enactment of
this Act; and
(ii) 12 months after the date of submission
of the first report under clause (i).
(4) GAO evaluation and report.--
(A) Evaluation.--The Comptroller General of the
United States shall evaluate each report submitted
under paragraph (3), and upon request, the Secretary,
the Secretary of Commerce, the Chairman of the Federal
Trade Commission, and the NAIC shall provide to the
Comptroller all documents, records, and any other
information that the Comptroller deems necessary to
carry out such evaluation.
(B) Report to congress.--Not later than 90 days
after receipt of each report submitted under paragraph
(3), the Comptroller General of the United States shall
submit to Congress a report of the evaluation required
by subparagraph (A).
SEC. 7. PRESERVATION OF STATE LAW.
Nothing in this Act shall affect the jurisdiction or regulatory
authority of the insurance commissioner (or any agency or office
performing like functions) of any State over any participating
insurance company or other person--
(1) except as specifically provided in this Act; and
(2) except that--
(A) the definition of the term ``act of terrorism''
in section 3 shall be the exclusive definition of that
term for purposes of compensation for insured losses
under this Act, and shall preempt any provision of
State law that is inconsistent with that definition, to
the extent that such provision of law would otherwise
apply to any type of insurance covered by this Act;
(B) during the period beginning on the date of
enactment of this Act and ending at midnight on
December 31, 2002, rates for terrorism risk insurance
covered by this Act and filed with any State shall not
be subject to prior approval or a waiting period, under
any law of a State that would otherwise be applicable,
except that nothing in this Act affects the ability of
any State to invalidate a rate as excessive,
inadequate, or unfairly discriminatory; and
(C) during the period beginning on the date of
enactment of this Act and for so long as the Program is
in effect, as provided in section 6 (including any
period during which the authority of the Secretary
under section 6(d) is in effect), books and records of
any participating insurance company that are relevant
to the Program shall be provided, or caused to be
provided, to the Secretary or the designee of the
Secretary, upon request by the Secretary or such
designee, notwithstanding any provision of the laws of
any State prohibiting or limiting such access.
SEC. 8. SENSE OF THE CONGRESS REGARDING CAPACITY BUILDING.
It is the sense of the Congress that the insurance industry should
build capacity and aggregate risk to provide affordable property and
casualty insurance coverage for terrorism risk.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS; PAYMENT AUTHORITY.
(a) Administrative Expenses.--There are authorized to be
appropriated to the Secretary, out of funds in the Treasury not
otherwise appropriated, such sums as may be necessary for
administrative expenses of the Program, to remain available until
expended.
(b) Payment Authority.--This Act constitutes payment authority in
advance of appropriation Acts, and represents the obligation of the
Federal Government to provide for the Federal share of compensation for
insured losses under the Program.
SEC. 10. PROCEDURES FOR CIVIL ACTIONS.
(a) Federal Cause of Action.--
(1) In general.--There shall exist a Federal cause of
action for property damage, personal injury, or death arising
out of or resulting from an act of terrorism, which shall be
the exclusive cause of action and remedy for claims for such
property damage, personal injury, or death, except as provided
in subsection (d).
(2) Preemption of state actions.--All State causes of
action of any kind for property damage, personal injury, or
death arising out of or resulting from an act of terrorism that
are otherwise available under State law, are hereby preempted,
except as provided in subsection (d).
(b) Governing Law.--The substantive law for decision in an action
described in subsection (a)(1) shall be derived from the law, including
applicable choice of law principles, of the State in which the act of
terrorism giving rise to the action occurred, except to the extent
that--
(1) the law, including choice of law principles, of another
State is determined to be applicable to the action by the
district court hearing the action; or
(2) otherwise applicable State law (including that
determined pursuant to paragraph (1), is inconsistent with or
otherwise preempted by Federal law.
(c) Punitive Damages.--Any amounts awarded in a civil action
described in subsection (a)(1) that are attributable to punitive
damages shall not count as insured losses for purposes of this Act.
(d) Claims Against Terrorists.--Nothing in this section shall in
any way be construed to limit the ability of any plaintiff to seek any
form of recovery from any person, government, or other entity that was
a participant in, or aider and abettor of, any act of terrorism.
(e) Effective Period.--This section shall apply only to actions
described in subsection (a)(1) arising out of or resulting from acts of
terrorism that occur during the effective period of the Program,
including, if applicable, any extension period provided for under
section 6.
Calendar No. 410
107th CONGRESS
2d Session
S. 2600
_______________________________________________________________________
A BILL
To ensure the continued financial capacity of insurers to provide
coverage for risks from terrorism.
_______________________________________________________________________
June 10, 2002
Read the second time and placed on the calendar
Introduced in Senate
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 410.
Measure laid before Senate by unanimous consent. (consideration: CR S5472-5501, S5503-5513, S5514-5528)
Considered by Senate. (consideration: CR S5573-5574, S5575-5577)
Cloture motion on the measure presented in Senate.
Considered by Senate. (consideration: CR S5624-5627)
Considered by Senate. (consideration: CR S5643-5650, S5662, S5656-5659, S5662-5663, S5664-5673)
Cloture on the bill invoked in Senate by Yea-Nay Vote. 65 - 31. Record Vote Number: 156.
Roll Call #156 (Senate)Passed/agreed to in Senate: Passed Senate with amendments by Yea-Nay Vote. 84 - 14. Record Vote Number: 157.(text as passed Senate: CR S5669-5673)
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Passed Senate with amendments by Yea-Nay Vote. 84 - 14. Record Vote Number: 157. (text as passed Senate: CR S5669-5673)
Roll Call #157 (Senate)Message on Senate action sent to the House.
Received in the House.
Held at the desk.
Senate incorporated this measure in H.R. 3210 as an amendment.
See also H.R. 3210.