The Senate Banking Committee is tentatively set to vote on its version of legislation extending the Terrorism Risk Insurance Act (TRIA) on Wednesday October 17. The bill the committee will consider differs significantly from the TRIA renewal passed by the House on September 19 by a vote of 312-110.

The House bill (H.R. 2761) extends and revises the federal terrorism insurance backstop for 15 years, adds coverage for nuclear, biological, chemical and radiological (NBCR) events and lowers the level where federal aid kicks in from the current $100 million to $50 million. The Senate version reportedly extends TRIA for seven years, continues the current trigger on the program, which is $100 million, and contains no provisions dealing with nuclear, biological, chemical or radiological events and no extension of the program to cover group life insurance, all of which are part of the House measure.

PIA supports the $50 million “trigger level” in the House version. The lower trigger ensures that America’s many regional insurance companies, vital to the success of America’s insurance industry, will remain in good financial standing should terrorists again strike our homeland. PIA also supports the inclusion of nuclear, biological, chemical and radiological attacks.

“Terrorism coverage is being required more and more by lenders of their commercial insurance borrowers of all sizes, on any sizable commercial loan anywhere,” said PIA National President Robert Page. “The need is not confined to major urban areas. Having this coverage available and affordable for small and mid-size commercial insureds—the customers of PIA agencies throughout the United States—is critical.”

PIA Applauds House Approval of TRIA (Insurance Broadcasting 9/21/07)

October 16, 2007