Sec. 109. Risk-sharing mechanisms
242 words·~1 min read·
/bill/113/hr/4871/rh/section-109·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 103(e) ( 15 U.S.C. 6701 note) is amended by adding at the end the following new paragraph: The Congress finds that it is desirable to encourage the growth of nongovernmental, private market reinsurance capacity for protection against losses arising from acts of terrorism. Therefore, nothing in this title shall prohibit insurers from developing risk-sharing mechanisms (including mutual reinsurance facilities and agreements, use of the capital markets, and insurance-linked securities) to voluntarily reinsure terrorism losses between and among themselves that are not subject to reimbursement under this section.
The Secretary shall appoint an Advisory Committee to— encourage the creation and development of such risk-sharing mechanisms; assist the Secretary and be available to administer such risk-sharing mechanisms; and develop articles of incorporation, bylaws, and a plan of operation for any long-term reinsurance facility authorized or created in the future. The Advisory Committee shall be composed of nine members who are directors, officers, or other employees of insurers, reinsurers, or capital market participants that are participating or that desire to participate in such mechanisms, and who are representative of the affected sectors of the insurance industry, including commercial property insurance, commercial casualty insurance, reinsurance, and alternative risk transfer industries. .
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, 2015, and Program Years thereafter.
Connectionstraces to 1
Traces to 1 document
U.S. Code
Citation graph
cites case law
Sec. 109
Risk-sharing mechanisms
Cites 1Cited by 0 across 0 sources