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PIA's Brevik Thanks President Bush for TRIA Support in Urging Congressional Renewal

WASHINGTON, July 13, 2005 - The National Association of Professional Insurance Agents (PIA) has thanked President Bush for the recent efforts of Treasury...
July 13, 2005

WASHINGTON, July 13, 2005  - The National Association of Professional Insurance Agents (PIA) has thanked President Bush for the recent efforts of Treasury Secretary John Snow to offer guidance to Members of Congress as they consider renewal of the Terrorism Risk Insurance Act (TRIA).

In remarks to Congressional leaders that accompanied an interim Treasury Department report on TRIA, Snow noted that TRIA has successfully achieved its goals of supporting continued availability of affordable terrorism insurance coverage and stabilizing the private insurance market. He then outlined key changes to the program Congress should consider to accompany renewal of TRIA. PIA strongly supports a two-year renewal of TRIA.

Both the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs are holding hearings this week on TRIA renewal.

"We believe that our members' customers will be unable to access terrorism coverage, and do so at affordable costs for their insurance needs, if this backstop suddenly disappears," states PIA Executive Vice President and CEO Len Brevik in the letter to President Bush [PDF file]. "It is not yet possible for the private market to completely cover the financial losses of another terrorist attack similar to the one our nation suffered on September 11, 2001. Therefore, we believe that TRIA must be renewed. It remains a critical part of our nation's economic recovery safety net." 

The letter goes on to point out that because of the current uncertainties as to whether TRIA will be renewed, many insurance companies have issued insurance policies noting that terrorism coverage may be dropped, re-priced or otherwise amended if TRIA is not renewed by Congress. In addition, many companies are saying that should Congress renew TRIA under different terms, they may amend the terrorism endorsement and pricing before the end of the policy period.

"We join with Secretary Snow in encouraging Congress to achieve the correct balance of private sector obligation and the need to reduce taxpayer exposure as renewal of TRIA is considered," Brevik wrote. "This approach will enable development of a long-term solution to insuring against terrorist attacks."

PIA conducted a major public campaign in support of the Bush Administration's successful effort to get Congress to pass TRIA in 2002, and was honored to be invited by the President to join him at the bill-signing ceremony in the East Room of the White House.

"The members of PIA appreciate your steadfast leadership in the war against terrorism," concludes the letter. "As you so appropriately noted, the recent tragedy in London provides us with yet another sobering example of the continuing threat that terrorism poses to freedom and our American way of life. You may rest assured that the members of PIA will always stand together, shoulder-to-shoulder with you in this fight."

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA will celebrate its 75th anniversary in 2006.

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