Page:United States Statutes at Large Volume 116 Part 3.djvu/738

 116 STAT. 2330 PUBLIC LAW 107-297—NOV. 26, 2002 (B) No MANDATORY RECOUPMENT IF UNCOMPENSATED LOSSES EXCEED INSURANCE MARKETPLACE RETENTION. —Notwithstanding subparagraph (A), if the aggregate amount of uncompensated insured losses referred to in clause (ii) of such subparagraph for any period referred to in subparagraph (A), (B), or (C) of paragraph (6) is greater than the insurance marketplace aggregate retention amount under paragraph (6) for such period, the mandatory recoupment amount shall be $0. (C) MANDATORY ESTABLISHMENT OF SURCHARGES TO RECOUP MANDATORY RECOUPMENT AMOUNT.— The Secretary shall collect, for repa5niient of the Federal financial assistance provided in connection with all acts of terrorism (or acts of war, in the case of workers compensation) occurring during any of the periods referred to in subparagraph (A), (B), or (C) of paragraph (6), terrorism loss riskspreading premiums in an amount equal to any mandatory recoupment amount for such period. (D) DISCRETIONARY RECOUPMENT OF REMAINDER OF FINANCIAL ASSISTANCE. — To the extent that the amount of Federal financial assistance provided exceeds any mandatory recoupment amount, the Secretary may recoup, through terrorism loss risk-spreading premiums, such additional amounts that the Secretary believes can be recouped, based on— (i) the ultimate costs to taxpayers of no additional recoupment; (ii) the economic conditions in the commercial marketplace, including the capitalization, profitability, and investment returns of the insurance industry and the current cycle of the insurance markets; (iii) the affordability of commercial insurance for smsdl- and medium-sized businesses; and (iv) such other factors as the Secretary considers appropriate. (8) POLICY SURCHARGE FOR TERRORISM LOSS RISK-SPREADING PREMIUMS. — (A) POLICYHOLDER PREMiliM.Any amount established by the Secretary as a terrorism loss risk-spreading premium shall— (i) be imposed as a policyholder premium surcharge on property and casualty insurance policies in force after the date of such establishment; (ii) begin with such period of coverage during the year as the Secretary determines appropriate; and (iii) be based on a percentage of the premium amount charged for property and casualty insurance coverage under the policy. (B) COLLECTION. — The Secretary shall provide for insurers to collect terrorism loss risk-spreading premiums and remit such amounts collected to the Secretary. (C) PERCENTAGE LIMITATION. — A terrorism loss riskspreading premium (including any additional amount included in such premium on a discretionary basis pursuant to paragraph (7)(D)) may not exceed, on an annual basis, the amount equal to 3 percent of the premium charged

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