Senate Panel Passes AGC-Supported Extension of the Terrorism Risk Insurance Act (TRIA)
On Wednesday, by a vote of 20-1, the Senate Banking Committee passed legislation to reauthorize and expand the Terrorism Risk Insurance Act (TRIA) program. This act was originally put in place after the 9/11 attacks when terrorism insurance was either no longer available or offered but was prohibitively expensive.
TRIA creates a government backstop, should another terrorist attack occur, that would cover the costs of such an attack once a certain monetary threshold was met. This provides the ability for coverage to be offered at a reasonable amount. TRIA is set to expire at the end of the year if it is not reauthorized by Congress.
The bill that passed the Senate Banking Committee differs from the House bill that would extend the program in a few key areas. For example, the Senate bill would reauthorize the program for seven years in comparison to the House bill which would extend the program for 15 years. In addition, the Senate does not include language that would require carriers to make available coverage for a nuclear, biological, chemical or radiological attack.
Since TRIA expires at the end of 2007, Senate Banking Committee Chairman Chris Dodd (D-Conn.) hopes to bring the bill to the Senate floor quickly, possibly next week. Even with a quick vote and potential passage on the Senate floor, a conference committee would have to meet to work out the differences before legislation could move forward.
For more information, contact Kelly Knott at email@example.com or (202) 547-4685.
return to top ]