TRIA passed; awaiting presidential signature

December 19th, 2005 by Julie Ferguson

In a Christmas present to the nation’s insurers, legislators voted to extend the Terrorism Risk and Insurance Act for two more years. The bill, which was set to expire December 31, is now awaiting a presidential signature. While it is not what some in the industry hoped for, it averts the immediate crisis that expiration would have triggered. Many in the industry were hoping for a more long-term solution rather than having to revisit the issue in two years.
According to the Business Insurance article:

“In 2006, the backstop would be triggered by losses from insured events greater than $50 million, and $100 million in 2007. The backstop also would be somewhat narrower in scope. Among the insurance lines excluded from TRIA coverage are group life, commercial auto, surety and professional liability. Property and general liability would be included under the backstop, but property policies would not be required cover nuclear, biological, radiological or chemical attacks.”

Insurance Journal reports that the bill was a result of a last minute compromise this past Friday. The story offers this initial industry reaction:

“PIA is very pleased that Congress renewed TRIA,” said National Association of Professional Insurance Agents Executive Vice President & CEO Len Brevik. “Passage of this legislation is good news for businesses across the country, for insurance agents, for our economy and for America.”

“At the same time, we share some of the concerns expressed by House Financial Services Committee Chairman Michael Oxley that the bill that was passed falls short of what was needed in some key aspects,” Brevik said.”