income. Cap on Assistance: $100 billion per year. Post Trigger Federal Assistance: When program is triggered, Federal government is to pay 90% of insured terrorism losses in excess of individual insurer trigger/deductibles while the insurer pays 10%. In 2007, this rises to 85%/15%. In 2016, this 85% shall decrease by 1 percentage point per calendar year until equal to 80% (15 U.S.C. §6701 note, §103(e)(1)(A) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note)). Recoupment of Assistance: Recoupment to be through surcharges of up to 3% of annual premiums on all policyholders. Mandatory recoupment for all amounts provided to insurers under industry-wide retention. No mandatory recoupment of uncompensated losses in excess of industry-wide retention. Secretary of the Treasury has discretion to recoup additional amounts. Covered Lines: Commercial, plus war coverage for workers' compensation; excludes reinsurance. Secretary of the Treasury has discretion to add group life insurance and other personal lines. Mandatory Terrorism Coverage: For the first two years, insurers must offer terrorism insurance in all commercial policies. Coverage must be available on terms identical to terms, amounts, and other coverage limitations applicable to losses incurred from events other than acts of terrorism. Application to State Residual Market Entities and State Workers Compensation Funds: Residual market entities and State funds are included in the insurers covered by the Act. The Act also applies to surplus lines carriers listed on the Quarterly Listing of Alien Insurers published by the National Association of Insurance Commissioners. In addition, captive insurers and other self-insurance arrangements such as workers compensation self-insurance programs and State workers compensation reinsurance pools are included. Cost Disclosure of Terrorism Coverage: Insurers must disclose terrorism insurance premiums and the existence of the federal backstop. Consultation with State Insurance Regulators (NAIC): As the Secretary of Treasury determines appropriate, concerning the Terrorism Insurance Program. State Regulation Uniformity: No stated uniformity. Civil Actions and Litigation: Federal cause of action in district court(s) designated by Judicial Panel on Multi-district Litigation with the substantive law of the state in which the act occurred applied. Legal Modifications and Limitations: Punitive damages do not constitute "insured losses" and thus no federal participation. U.S. right of subrogation. Reports from Insurers: No reports required, except for data not available to NAIC. Secretary of Treasury responsible for compiling of data. State Pre-emption: Applicable to terrorism definition and state prior approval rating statutes. Also applies to existing terrorism exclusions, with