AMENDMENTS TO DEFINED TERMS.

SEC. 3. AMENDMENTS TO DEFINED TERMS. (a) Program Years.—Section 102(11) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326) is amended by adding at the end the following: “(E) Program year 4.—The term ‘Program Year 4’ means the period beginning on January 1, 2006 and ending on December 31, 2006. “(F) Program year 5.—The term ‘Program Year 5’ means the period beginning on January 1, 2007 and ending on December 31, 2007.” . (b) Exclusions From Covered Lines.— (1) In general.—Section 102(12)(B) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326) is amended— (A) in clause (vi), by striking “or” at the end; (B) in clause (vii), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: “(viii) commercial automobile insurance; “(ix) burglary and theft insurance; “(x) surety insurance; “(xi) professional liability insurance; or “(xii) farm owners multiple peril insurance.” . (2) Conforming amendment.—Section 102(12)(A) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2326) is amended by striking “surety insurance” and inserting “directors and officers liability insurance”. (c) Insurer Deductibles.—Section 102(7) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note; 116 Stat. 2325) is amended— (1) in subparagraph (D), by striking “and” at the end; (2) by redesignating subparagraph (E) as subparagraph (G); (3) by inserting after subparagraph (D), the following: “(E) for Program Year 4, the value of an insurer’s direct earned premiums over the calendar year immediately preceding Program Year 4, multiplied by 17.5 percent; “(F) for Program Year 5, the value of an insurer’s direct earned premiums over the calendar year immediately preceding Program Year 5, multiplied by 20 percent; and” ; and (4) in subparagraph (G), as so redesignated, by striking “through (D)” and all that follows through “Year 3” and inserting the following: “through (F), for the Transition Period or any Program Year”.