Congressional Budget Office Cost Estimate: Statutory Pay-As-You-Go Effects of H.R. 4634, the Terrorism Risk Insurance Program Reauthorization Act of 2019   [open pdf - 51KB]

This is the Congressional Budget Office Cost Estimate as ordered reported by the House Committee on Financial Services on October 31, 2019. From the Document: "The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays and revenues that are subject to those procedures are shown here. H.R. 4634 would extend the Terrorism Risk Insurance Program for seven years through the end of calendar year 2027. That program requires the Treasury to provide financial assistance to property and casualty insurance companies that receive claims from commercial policyholders affected by a qualifying terrorist attack. Outlays reflect CBO's [Congressional Budget Office] estimate of the annual expected value of federal payments to insurance companies; revenues reflect an assessment placed on all property and casualty insurance companies equal to 140 percent of the expected federal costs that are less than a statutorily specified amount. Under H.R. 4634, all of those assessments must be collected by the Treasury by the end of fiscal year 2029. CBO anticipates that the Treasury would pay a substantial amount of insurance claims after the end of fiscal year 2029 because the value of such claims are typically disputed for many years following a catastrophic loss."

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