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Bill to Extend TRIA Is Introduced in the Senate

A bipartisan bill (S. 2244) to reauthorize and extend the Terrorism Risk Insurance Act was introduced April 10 in the U.S. Senate by Sens. Charles Schumer (D-N.Y.) and Christopher Murphy (D-Conn.)...
April 17, 2014

A bipartisan bill (S. 2244) to reauthorize and extend the Terrorism Risk Insurance Act (TRIA) was introduced April 10 in the U.S. Senate by Sens. Charles Schumer (D-N.Y.) and Christopher Murphy (D-Conn.).

PIA lobbied for the creation of TRIA in 2002 and has since strongly supported each of its reauthorizations. The current reauthorization expires on December 31, 2014. During the just-completed PIA Federal Legislative Summit (FLS), PIA members from around the country met with their representatives and senators, emphasizing the importance of renewing TRIA. PIA agents from New York and Connecticut met with Sens. Schumer and Murphy.

“PIA strongly supports the reauthorization of TRIA, in a manner in which all companies, small and large, have an opportunity to participate,” said PIA National Director of Federal Affairs Jon Gentile. “Failure to re-authorize TRIA in a timely fashion could have dire consequences on the nation’s economy and ability to rebound from a terrorist attack.”

Schumer FLS
PIA meets with Sen. Charles Schumer (D-N.Y.) (seated at center) during the 2014 PIA Federal Legislative Summit.

Under the proposed legislation, insurers’ copays would be raised to 20 percent from 15 percent. In addition, the recoupment of federal payments will be mandatory if the insurance industry’s aggregate compensation loss is less than $37.5 billion, up from the current sum of $27.5 billion. This increase would be phased in over a period of five years.

PIA is concerned that any further changes to TRIA could lead to small and mid-sized carriers, the life blood of many markets, being shut out of the market, an outcome that would be detrimental to many communities.

S. 2244 is co-sponsored by Sens. Dean Heller (R-Nev.); Mark Kirk, (R-Ill.); and Mike Johanns (R-Neb.). Following its introduction, it was referred to the Senate Committee on Banking, Housing, and Urban Affairs.

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