Terrorism Risk Insurance Act of 2002

Terrorism Risk Insurance Act of 2002 - Title I: Terrorism Insurance Program - (Sec. 103) Establishes a three-year Terrorism Insurance Program in the Department of the Treasury, administered by the Secretary of the Treasury, to pay the Federal share of compensation for insured losses resulting from acts of terrorism. Cites conditions for Federal payments. Mandates insurer participation in the Program. Sets forth a transition period followed by an initial Program period (January 1, 2003, to December 31, 2005) during which insurers must make available: (1) coverage for insured losses in all property and casualty insurance policies; and (2) property and casualty insurance for insured losses that does not differ materially from coverage limitations applicable to losses from events other than acts of terrorism. Directs the Secretary to promulgate regulations that apply this title to State residual market insurance entities and State workers' compensation funds. States that the Federal share of compensation for insured losses of an insurer shall be 90 percent of the portion of such losses exceeding the insurer deductible required to be paid during the Program Year. Prohibits duplicative compensation for insurance losses under any other Federal program. Caps at $100 billion the annual aggregate insured losses for which either the Secretary or an insurer that has met its insurer deductible shall be liable. Directs the Secretary to determine the pro rata share of insured losses to be paid by each insurer that incurs insured losses under the Program. Requires the Secretary to notify Congress if estimated or actual aggregate annual insured losses during the Program exceed $100 billion. States that Congress shall determine payment procedures and the source of payments for excess insured losses. Grants the Secretary sole discretion to determine the time at which claims for insured losses or acts of terrorism become final. States that such determination is final (unless expressly provided) and not subject to judicial review. Prescribes formulae and other requirements for the: (1) insurance marketplace aggregate retention amount; (2) mandatory recoupment amount of the Federal share; and (3) policyholder premium surcharge for terrorism loss risk-spreading premiums (including certain adjustments for urban and smaller commercial and rural areas and different lines of insurance). Authorizes the Secretary to apply this title to other types of captive insurers and self-insurance arrangements by municipalities and other entities (such as workers' compensation self-insurance programs and State workers' compensation reinsurance pools), but only if such application is determined before the occurrence of an act of terrorism in which the entity incurs an insured loss and all provisions of this title are applied comparably to such entities. Provides that this title neither prevents nor limits insurers from obtaining reinsurance coverage for insurer deductibles or insured losses, nor does obtaining such coverage affect the calculation of deductibles or retentions. Prohibits the combined amount of Federal financial assistance and reinsurance proceeds from exceeding the aggregate amount of the insurer's insured losses for specified periods. Directs the Secretary to study: (1) whether adequate and affordable catastrophe reinsurance for acts of terrorism is available to issuers of group life insurance, and the extent to which the threat of terrorism reduces the availability of group life insurance for consumers; and (2) the potential effects of acts of terrorism on the availability of life insurance and other lines of insurance coverage, including personal lines. (Sec. 104) Cites the powers and authorities granted to the Secretary for Program implementation, including authority to assess a civil monetary penalty against any insurer for violation of this title. Makes appropriations for Federal payments and administration expenses under the Program. (Sec. 105) Preempts and nullifies any pre-existing terrorism exclusion clause in a property and casualty insurance contract (including a State-approved contract) to the extent that it excludes losses that would otherwise be insured losses. Allows reinstatement of such exclusion, however, upon an affirmative written authorization from the insured, or upon the insured's failure to pay an increased premium for terrorism coverage despite due notice from the insurer. (Sec. 106) Preserves the jurisdiction or regulatory authority of the State insurance commissioner (or any State agency or office performing like functions over any insurer), except as specifically provided in this title. (Sec. 107) Declares that a Federal cause of action is the exclusive cause of action and remedy for claims for property damage, personal injury, or death arising out of, or resulting from an act of terrorism (thus preempting a State cause of action). (Sec. 108) Sunsets the Program on December 31, 2005. Directs the Secretary to study and report to Congress on: (1) Program effectiveness and the likely capacity of the property and casualty insurance industry to offer terrorism risk insurance after Program termination; and (2) the availability and affordability of such insurance for various policyholders, including railroads, trucking, and public transit. Title II: Treatment of Terrorist Assets - (Sec. 201) Subjects to execution or attachment in aid of execution the blocked assets of terrorists (including terrorist organizations and state sponsors of terrorism) in order to satisfy a judgment on a claim based upon an act of terrorism, to the extent that the parties have been adjudged liable for compensatory damages. Permits a Presidential waiver (with certain exceptions) of such attachment against property subject to the Vienna Convention on Diplomatic Relations, or the Vienna Convention on Consular Relations, after the President determines on an asset-by-asset basis that it is necessary in the national security interest. Amends the Victims of Trafficking and Violence Protection Act of 2000 to: (1) revise the time frame under which certain claimants who filed suit are considered eligible for payment in connection with certain anti-terrorism judgments against Iran or Cuba; (2) prescribe guidelines for the distribution of account balances and proceeds inadequate to satisfy the full amount of compensatory awards against Iran; and (3) authorize the Secretary to promulgate guidelines for establishing claims of a right to payment. Title III: Federal Reserve Board Provisions - (Sec. 301) Amends the Federal Reserve Act to state that certain actions that currently require the affirmative vote of five members of the Board of Governors of the Federal Reserve System may nevertheless be taken upon the unanimous vote of all members then in office if fewer than five. Authorizes the Board to take action upon the unanimous vote of all available members then in office with respect to discounts for individuals, partnerships, and corporations, if at least two members are available, all available members participate in the action and unanimously determine that: (1) unusual and exigent circumstances exist and the borrower is unable to secure adequate credit accommodations from other sources; (2) action on the matter is necessary to prevent, correct, or mitigate serious harm to the economy or the stability of the financial system of the United States; (3) the other Board members have not been able to be contacted and action is required before the number of Board members otherwise required to vote on the matter can be contacted; and (4) any credit extended by a Federal reserve bank pursuant to such action is payable upon demand of the Board. Mandates Board documentation of such determinations.

Terrorism Risk Insurance Act of 2002 - Establishes in the Department of the Treasury the Terrorism Insured Loss Shared Compensation Program, administered by the Secretary of the Treasury, who shall have general Program authorities and pay the Federal share of compensation for insured losses. (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.

Terrorism Risk Protection Act - Confers responsibility upon the Secretary of the Treasury (Secretary) to implement a financial assistance program for commercial property and casualty insurers. (Sec. 4) Authorizes the Secretary to require each insurer to submit to the Secretary or to the National Association of Insurance Commissioners (NAIC), a statement specifying the net premium amount of coverage it has written for properties and persons in the United States under each line of commercial property and casualty insurance sold during certain periods. (Sec. 5) Defines triggering determination as a determination by the Secretary that an act of terrorism has occurred during the period between enactment of this Act and January 1, 2003, (covered period), and that the aggregate insured losses resulting from such occurrence or from multiple occurrences of such acts all occurring during the covered period meet specified requirements. Sets the industry-wide trigger at losses exceeding $1 billion, and the individual insurer trigger, in such circumstances, when any single commercial insurer losses exceed ten percent of its capital surplus and ten percent of the net written commercial property and casualty premiums it has written. Denies application of such triggers to any commercial insurer that was not providing such insurance coverage before September 11, 2001, unless the insurer incurs such losses under commercial property and casualty insurance providing coverage for acts of terrorism through a pool of reserves for terrorism risks that is not under the control of any commercial insurer. (Sec. 6) Prescribes procedural guidelines under which the Secretary shall provide financial assistance to commercial insurers to cover insured losses resulting from an act of terrorism. Sets the amount of such assistance at the difference between: (1) 90 percent of each commercial insurer's insured losses; and (2) $5 million. Provides for additional amounts of assistance for subsequent triggering determinations. Sets $100 billion as the maximum aggregate amount of such financial assistance. Expresses the sense of Congress that acts of terrorism resulting in insured losses greater than $100 billion would necessitate further action by the Congress to address such additional losses. Designates the amount of new budget authority and outlays in all fiscal years resulting from this Act as an emergency requirement pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). (Sec. 7) Subjects each commercial insurer, in the event of a triggering determination, to assessments for the purpose of repaying a portion of the Federal financial assistance received. Requires the Secretary, pursuant to a triggering determination, to determine the aggregate amount to be assessed among all commercial insurers, which shall be equal to $20 billion, or the amount of financial assistance paid in connection with the triggering determination, whichever is less. Requires that such aggregate assessment amount be assessed to commercial insurers through an industry obligation assessment determined according to a specified formula. Provides for: (1) delayed imposition and aggregation of multiple assessments in the event of multiple triggering determinations; and (2) financing assessments if the aggregate assessment amount in connection with a triggering determination exceeds the aggregate amount of the industry obligation assessment. (Sec. 8) Sets forth a terrorism loss repayment surcharge plan which imposes a policyholder premium surcharge (of up to three percent of the insurer's net written premium) on commercial property and casualty insurance if the aggregate amount of financial assistance to a commercial insurer exceeds $20 billion. (Sec. 9) Directs the Secretary to provide for implementation and administration of assessments and surcharges, taking into consideration: (1) their economic impact on rents and commercial insurance premiums in commercial centers of urban areas; (2) the risk factors related to rural areas and smaller commercial centers; and (3) the various exposures to terrorism for different lines of commercial property and casualty insurance. Subjects a commercial insurer to a civil monetary penalty for noncompliance with assessment and surcharge obligations. (Sec. 10) Authorizes the Secretary to apply such assessments and surcharge plans applicable to self-insurance arrangements by municipalities but only if application is determined before the occurrence of a triggering event and all provisions of this Act are applied uniformly to such entities. Requires the Secretary to ensure that this Act is applied as appropriate to any offshore or non-admitted entities that provide commercial property and casualty insurance. (Sec. 11) Directs the Secretary to study and report to Congress on specified issues relating to permitting property and casualty insurance companies to establish deductible reserves against future acts of terrorism. (Sec. 12) States that any provision of State law that prevents an insurer from increasing premium rates in an amount necessary to recover assessments imposed by this Act is preempted to the extent necessary to permit the insurer to recover such losses. (Sec. 13) Expresses the sense of Congress that: (1) NAIC should develop appropriate definitions for acts of terrorism and appropriate standards for making determinations regarding occurrences of such acts; (2) each State should adopt such definitions and standards for purposes of regulating insurance coverage in that State; (3) the Secretary should advocate to NAIC and promote the development of appropriate definitions and standards; and (4) after consultation with NAIC, the Secretary should adopt definitions for acts of terrorism and standards for determinations that are appropriate for this Act. Expresses the sense of Congress that: (1) NAIC should develop appropriate guidelines for commercial insurers and pools regarding maintenance of reserves against the risks of acts of terrorism; and (2) each State should adopt such guidelines for purposes of regulating commercial insurers doing business in that State. Expresses the sense of Congress that the States should require, by laws or regulations governing the provision of commercial property and casualty insurance that includes coverage for acts of terrorism, that the price of any such terrorism coverage, including the costs of any terrorism related assessments or surcharges under this Act, be separately disclosed. (Sec. 15) Declares that, if the Secretary makes a triggering determination that one or more acts of terrorism occurred, there shall exist a Federal cause of action, which shall be the exclusive remedy, for damages claimed for insured losses arising out of, relating to, or resulting from acts of terrorism. Exempts from judicial review the Secretary's determination that an act of terror has occurred, and makes such determination effective upon publication in the Federal Register. Prohibits the award of punitive damages, or of non-economic damages in excess of the defendant's direct proportion of responsibility for the plaintiff's physical harm. Sets the maximum attorneys' fees at 20 percent of court-awarded damages or claims settlement. Establishes criminal penalties for violation of such statutory fee limitation. Provides for: (1) satisfaction of judgments from frozen assets of terrorists, terrorist organizations, and state sponsors of terrorism; and (2) a Presidential waiver of such satisfaction of judgment for certain property subject to the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular Relations, if the President determines on an asset-by-asset basis that a waiver is necessary in the national security interest. (Sec. 16) Instructs the President to establish a commission to study and report to Congress on the potential effects of an act of terrorism on the life insurance industry in the United States and the markets it serves. (Sec. 17) Instructs the Secretary to study and report to Congress on: (1) how the Federal Government can address a possible crisis in the availability and affordability of railroad and trucking insurance by making such insurance for acts of terrorism available on commercially reasonable terms; and (2) the advisability and effectiveness of establishing a reinsurance pool system relating to future acts of terrorism to replace the program provided for under this Act. (Sec. 20) Authorizes the Secretary, subject to notice to Congress, to extend the covered period by up to two years if that is necessary to ensure the adequate availability in the United States of commercial property and casualty insurance coverage for acts of terrorism.

Terrorism Risk Protection Act - Confers responsibility upon the Secretary of the Treasury (Secretary) to implement a financial assistance program for commercial property and casualty insurers. (Sec. 4) Authorizes the Secretary to require each insurer to submit to the Secretary or to the National Association of Insurance Commissioners (NAIC), a statement specifying the net premium amount of coverage it has written for properties and persons in the United States under each line of commercial property and casualty insurance sold during certain periods. (Sec. 5) Specifies triggering determinations the Secretary shall make regarding insured losses resulting from the occurrence of an act of terrorism, or the aggregate amount of such losses from multiple occurrences of such acts all occurring, during the period between enactment of this Act and January 1, 2003. Sets the industry-wide trigger at losses exceeding $1 billion, and the individual insurer trigger, in such circumstances, when any single commercial insurer losses exceed ten percent of its capital surplus and ten percent of the net commercial property and casualty premiums it has written. (Sec. 6) Prescribes procedural guidelines under which the Secretary shall provide financial assistance to commercial insurers to cover insured losses resulting from an act of terrorism. Sets the amount of such assistance at 90 percent of each commercial insurer's insured losses, with $100 billion as the maximum aggregate amount of such financial assistance. Designates the amount of new budget authority and outlays in all fiscal years resulting from this Act as an emergency requirement pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). (Sec. 7) Sets forth repayment mechanisms under the financial assistance plan which provide for: (1) an assessments schedule; and (2) a terrorism loss repayment surcharge plan which imposes a policyholder premium surcharge (of up to three percent of the insurer's net written premium) on commercial property and casualty insurance if the aggregate amount of financial assistance to a commercial insurer exceeds $20 billion. (Sec. 9) Directs the Secretary to provide for implementation and administration of assessments and surcharges, taking into consideration their economic impact on rents and commercial insurance premiums in commercial centers of urban areas. (Sec. 10) Authorizes the Secretary to apply such assessments and surcharge plans applicable to self-insurance arrangements by municipalities but only if application is determined before the occurrence of a triggering event and all provisions of this Act are applied uniformly to such entities. Requires the Secretary to ensure that this Act is applied as appropriate to any offshore or non-admitted entities that provide commercial property and casualty insurance. (Sec. 11) Amends the Internal Revenue Code to allow an insurance company to establish a segregated terrorism commercial business reserve. Includes in gross income any net decreases in such a reserve, and treats net increases as deductions. Sets the limit of such a reserve at the company's allocable share of the national limit of $40 billion ($13.34 billion in 2002), determined according to a specified formula, and adjusted annually for inflation. (Sec. 12) States that any provision of State law that prevents an insurer from increasing premium rates in an amount necessary to recover assessments imposed by this Act is preempted to the extent necessary to permit the insurer to recover such losses. (Sec. 13) Expresses the sense of Congress that: (1) NAIC should develop appropriate definitions for acts of terrorism and appropriate standards for making determinations regarding occurrences of such acts; (2) each State should adopt such definitions and standards for purposes of regulating insurance coverage in that State; (3) the Secretary should advocate to NAIC and promote the development of appropriate definitions and standards; and (4) after consultation with NAIC, the Secretary should adopt definitions for acts of terrorism and standards for determinations that are appropriate for this Act. Expresses the sense of Congress that: (1) NAIC should develop appropriate guidelines for commercial insurers and pools regarding maintenance of reserves against the risks of acts of terrorism; and (2) each State should adopt such guidelines for purposes of regulating commercial insurers doing business in that State. Expresses the sense of Congress that the States should require, by laws or regulations governing the provision of commercial property and casualty insurance that includes coverage for acts of terrorism, that the price of any such terrorism coverage, including the costs of any terrorism related assessments or surcharges under this Act, be separately disclosed. (Sec. 15) Declares that, if a triggering determination occurs requiring an assessment or a surcharge, there shall exist a Federal cause of action, which shall be the exclusive remedy, for damages claimed for insured losses resulting from acts of terrorism. Prohibits the award of punitive damages, or of noneconomic damages in excess of the defendant's direct proportion of responsibility for the plaintiff's harm. (Sec. 16) Directs the President to establish a commission to study and report to Congress on the potential effects of an act of terrorism on the life insurance industry in the United States and the markets it serves. (Sec. 17) Instructs the Secretary to study and report to Congress on: (1) how the Federal Government can address a possible crisis in the availability and affordability of railroad insurance by making such insurance for acts of terrorism available on commercially reasonable terms; (2) the advisability and effectiveness of establishing a reinsurance pool system relating to future acts of terrorism to replace the program provided for under this Act; and (3) the potential effects on the availability of terrorism insurance coverage by the amendments to the Internal Revenue Code under this Act regarding establishment of terrorism commercial business reserves. (Sec. 20) Authorizes the Secretary, subject to notice to Congress, to extend the financial assistance program under this Act for one or two years if that is necessary to ensure the adequate availability in the United States of commercial property and casualty insurance coverage for acts of terrorism.

Terrorism Risk Protection Act - Sets a deadline for the President to designate an Administrator (or Administrators) to implement this Act. (Sec. 3) Expresses the sense of Congress that in determining the Administrator responsible for making determinations as to whether a loss was caused by an act of terrorism, the President should consider the appropriate role of the Assistant to the President for Homeland Security. (Sec. 4) Authorizes the appropriate Administrator to require each insurer to submit a statement specifying the aggregate premium amount of coverage it has written for properties and persons in the United States under each line of commercial property and casualty insurance sold during certain periods. (Sec. 5) Specifies triggering determinations the appropriate Administrator shall make regarding insured losses resulting from the occurrence of an act of terrorism, or the aggregate amount of such losses from multiple occurrences of such acts all occurring, during the period between enactment of this Act and January 1, 2003. Sets the industry-wide loss test at losses exceeding $1 billion, and the capital surplus and industry aggregate test, in such circumstances, when some portion of such losses for any single commercial insurer exceed ten percent of its capital surplus and ten percent of the commercial property and casualty premiums it has written. States that triggering determinations and loss tests shall not apply to any commercial insurer making commercial property and casualty insurance coverage available for less than four years as of the date of the triggering determination. (Sec. 6) Prescribes procedural guidelines under which the appropriate Administrator shall provide financial assistance to commercial insurers to cover insured losses resulting from an act of terrorism. Sets the amount of such assistance at 90 percent of each commercial insurer's insured losses, with $100 billion as the maximum aggregate amount of such financial assistance. Designates the amount of new budget authority and outlays in all fiscal years resulting from this Act as an emergency requirement pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). (Sec. 7) Sets forth repayment mechanisms under the financial assistance plan which provide for: (1) an assessments schedule; and (2) a terrorism loss repayment surcharge plan under which the appropriate Administrator shall impose a policyholder premium surcharge on commercial property and casualty insurance if the aggregate amount of industry-wide losses resulting from the triggering event exceeds $20 billion. (Sec. 9) Directs the appropriate Administrator to provide for implementation and administration of assessments and surcharges. Authorizes the Administrator to apply this Act to self-insurance arrangements by municipalities and other entities, but only if such application is determined before the occurrence of a triggering event, and all of the provisions of this Act are applied uniformly to such entities. (Sec. 10) Instructs the Secretary of the Treasury to study and report to Congress on issues relating to permitting property and casualty insurance companies to establish deductible reserves against losses for future acts of terrorism. (Sec. 11) States that any provision of State law that prevents an insurer from increasing premium rates in an amount necessary to recover assessments imposed by this Act is preempted to the extent necessary to permit the insurer to recover such losses. (Sec. 12) Expresses the sense of Congress that: (1) NAIC should develop appropriate definitions for acts of terrorism and appropriate standards for making determinations regarding occurrences of such acts; (2) each State should adopt such definitions and standards for purposes of regulating insurance coverage in that State; (3) the appropriate Administrator should advocate to NAIC and promote the development of appropriate definitions and standards; and (4) after consultation with NAIC, the appropriate Administrator should adopt definitions for acts of terrorism and standards for determinations that are appropriate for this Act. Expresses the sense of Congress that: (1) NAIC should develop appropriate guidelines for commercial insurers and pools regarding maintenance of reserves against the risks of acts of terrorism; and (2) each State should adopt such guidelines for purposes of regulating commercial insurers doing business in that State. Expresses the sense of Congress that the States should require, by laws or regulations governing the provision of commercial property and casualty insurance that includes coverage for acts of terrorism, that the price of any such terrorism coverage, including the costs of any terrorism related assessments or surcharges under this Act, be separately disclosed. (Sec. 13) Requires the Administrators to consult with State insurance regulators and the NAIC in implementing this Act. (Sec. 14) Declares that, if a triggering determination occurs requiring an assessment or a surcharge, there shall exist a Federal cause of action, which shall be the exclusive remedy, for damages claimed for insured losses resulting from acts of terrorism. Prohibits the award of punitive damages, or of noneconomic damages in excess of the defendant's direct proportion of responsibility for the plaintiff's harm. (Sec. 15) Directs the President to establish a commission to study and report to Congress on the potential effects of an act of terrorism on the life insurance industry in the United States and the markets it serves. (Sec. 17) Authorizes the Administrator to extend the financial assistance program under this Act for a period or periods until January 1, 2005, if the Administrator determines that it is necessary to ensure the adequate availability in the United States of commercial property and casualty insurance coverage for acts of terrorism.

Terrorism Risk Protection Act - Sets a deadline for the President to designate an Administrator (or Administrators) to implement this Act. Expresses the sense of Congress that, in determining the Administrator responsible for making determinations as to whether a loss was caused by an act of terrorism, the President should consider the appropriate role of the Assistant to the President for Homeland Security. Prescribes procedural guidelines under which such Administrator shall provide financial assistance (up to $100 billion) to commercial insurers to cover insured losses resulting from an act of terrorism. Amends the Internal Revenue Code to establish a terrorism reserve for commercial lines of insurance business. Expresses the sense of the Congress that: (1) the National Association of Insurance Commissioners (NAIC) should develop appropriate definitions for acts of terrorism and appropriate standards for making determinations regarding such acts; (2) each State should adopt those definitions and standards for purposes of regulating insurance coverage in that State; (3) the appropriate Administrator should advocate and promote the development of definitions and standards appropriate for purposes of this Act; and (4) after such consultation, the appropriate Administrator should adopt definitions for acts of terrorism and standards for determinations appropriate for this Act. Expresses the sense of the Congress that: (1) the NAIC should develop appropriate guidelines for commercial insurers and pools regarding maintenance of reserves against the risks of acts of terrorism; and (2) each State should adopt such guidelines for commercial insurers doing business in that State. Expresses the sense of the Congress that the States should require that the price of terrorism insurance coverage, including the costs of any terrorism related assessments or surcharges, be separately disclosed. Instructs the President to establish a commission to study and report to Congress on the potential effects of an act of terrorism on the life insurance industry in the United States and the markets served by such industry.