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Deal for Six-year TRIA Reached, Hits Possible Snag

After several days of intense negotiations and the involvement of House leadership, a deal has been reached between the House and the Senate to reauthorize the Terrorism Risk Insurance Act—but it may hit a snag due to unrelated proposals...
December 11, 2014

After several days of intense negotiations and the involvement of House leadership, a deal has been reached between the House and the Senate to reauthorize the Terrorism Risk Insurance Act (TRIA)—but it may hit a snag due to unrelated proposals.

On Tuesday December 9,compromise legislation renewing the Terrorism Risk Insurance Act (TRIA) for six years was released by Rep. Randy Neugebauer (R-Texas), chairman of the House Financial Services Housing and Insurance subcommittee. This bill is the result of extensive negotiations between Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, and Sen. Charles Schumer (D-N.Y.), joined at times by other members.

Provisions in the Bill

The TRIA deal embodied in the bill provides much of what PIA has been advocating throughout the year, beginning with a long-term reauthorization of 6 years. While the trigger will be raised, its level is limited to an increase of $20 million each year starting in 2016, eventually bringing it to $200 million by 2020.

Importantly the bill does not include so-called bifurcation for treating nuclear, biological, chemical and radiological attacks differently from more conventional forms of attack. Notable for PIA, the bill also includes the National Association of Registered Agents and Brokers (NARAB II) and does not include the 2 year sunset provision that had appeared in the bill that passed out of the Senate.

While the TRIA provisions have been agreed to, moving on the finalized bill is another matter. At issue is a major disagreement between Hensarling and the Democratic Senate on a provision that Democrats say would weaken the 2010 Dodd-Frank Wall Street Reform Law. As a result of this disagreement, TRIA's long-term reauthorization is not yet a done deal. The situation remains extremely fluid.

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