AGC Pushes for Terrorism Risk Insurance Act Reauthorization
The Terrorism Risk Insurance Act (TRIA) program expires December 31, 2007.
This program was created after the 9/11 attacks when terrorism insurance was either unavailable or offered but prohibitively expensive. TRIA creates a federal backstop which, should another terrorist attack occur, would cover the costs resulting from the attack once a certain monetary threshold was met. This provides the ability for coverage to be offered at a reasonable amount.
Both the House and the Senate passed different bills reauthorizing the program, but still need to compromise on a final bill. The Senate bill reauthorizes the program for seven years, while the House bill extends the program for 15 years. In addition, the Senate omits language requiring carriers to make available coverage for a nuclear, biological, chemical or radiological attack. The House is currently working on a revised bill that would more closely mirror the Senate bill, but a final agreement has not been made yet. With a hard deadline looming, it is most likely that the Senate bill will be the agreed upon vehicle to continue the program.
AGC will continue to push action on this legislation.
For more information, contact Kelly Knott at email@example.com or (202) 547-4685.
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