Sec. 108. Terrorism loss risk-spreading premium
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Section 103(e) ( 15 U.S.C. 6701 note) is amended by striking paragraph
(8)and inserting the following new paragraph: After an act of terrorism, the Secretary shall, to the extent provided in paragraph (7)(B), and may, to the extent provided in paragraph (7)(C), establish terrorism loss risk-spreading premiums, which shall be imposed as a policyholder premium surcharge on property and casualty insurance policies for all participating insurers in force after the date of such establishment. The Secretary shall provide for insurers to collect terrorism loss risk-spreading premiums and remit such amounts collected to the Secretary. In determining the method and manner of imposing terrorism loss risk-spreading premiums, including the amount of such premiums, the Secretary shall— impose such terrorism loss risk-spreading premiums beginning with such period of coverage during the year as the Secretary determines appropriate, but shall commence imposition of such premiums not later than 18 months after the occurrence of the act of terrorism for which such premiums are imposed; base any terrorism loss risk-spreading premium on a percentage of the premium amount charged for property and casualty insurance coverage under the policy; and take into consideration— the economic impact on commercial centers of urban areas, including the effect on commercial rents and commercial insurance premiums, particularly rents and premiums charged to small businesses, and the availability of lease space and commercial insurance within urban areas; the risk factors related to rural areas and smaller commercial centers, including the potential exposure to loss and the likely magnitude of such loss, as well as any resulting cross-subsidization that might result; and the various exposures to terrorism risk for different lines of insurance. A terrorism loss risk-spreading premium collected on a discretionary basis pursuant to paragraph (7)(C) shall not be less than, on an annual basis, the amount equal to 3 percent of the premium charged for property and casualty insurance coverage under the policy. The Secretary may adjust the timing of terrorism loss risk-spreading premiums to provide for equivalent application of the provisions of this title to policies that are not based on a calendar year, or to apply such provisions on a daily, monthly, or quarterly basis, as appropriate. . The amendment made by subsection
(a)shall apply to the Program Year for the Terrorism Insurance Program established by title I of the Terrorism Risk Insurance Act of 2002 ( 15 U.S.C. 6701 note) that begins on January 1, 2016, and Program Years thereafter.
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Sec. 108
Terrorism loss risk-spreading premium
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